As an air freight subsidiary of China Southern Airlines Group, the fully-qualified general aviation company attracts three state-owned investors.
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On November 26, 2020, China Southern Airlines’ air freight subsidiary, China Southern Airlines General Aviation, started implementing an employee stock ownership plan, at the same time as bringing in large investors. This reform mainly focuses on attracting three state-owned investors, including State Reform Shuangbai Development Fund Management, China Southern Power Grid Company and China Southern Airlines Capital Holdings. After the reform, the company’s registered capital will reach CNY 1.34 billion and China Southern Airlines will still be the largest controlling shareholder holding 57.9% shares.
China Southern Airlines General Aviation is a leading general aviation company with full authorization to operate in China. Its main business scope includes many fields, such as petroleum service, helicopter external load flight, artificial precipitation, medical rescue, general aviation charter flight, marine monitoring, urban fire control and air patrol services. The company operates 25 general aircraft and four marine producing bases.
The mixed-ownership reform trial of China's three major airlines (China Southern Airlines, China Eastern Airlines and Air China) all start with their cargo subsidiaries. The main reason is that the reform of air freight is urgently needed. In recent years, the logistics industry has developed rapidly, while the air freight business has been gradually marginalized and profitability remains low. Moreover, freight revenue accounts for only about 10%. The reform will not have too much impact on their productions and operations.