A week after international financier George Soros injected 25 million US dollars into Hainan Airlines, the fourth largest carrier of China, this airline group obtained another sum of 1.5 billion yuan (185 million US dollars) Saturday for the building of a new carrier, Grand China Air.

Under the permission of the General Administration of Civil Aviation of China (CAAC), the Hainan Airlines Group is reorganizing its assets and building a new carrier under the brandof Grand China Air. The group planned to collect a capital of 5 billion yuan (617 million US dollars) in the first and second private placement phases by the end of this year.

The 1.5 billion yuan investment, from the Hainan Development Holdings Limited, along with Soros' investment, will accelerate the completion of the first two phases of private placement, while greatly enhancing investors' confidence, said Chen Feng, chairman of the Hainan Airlines Group.

"In the third phase, Grand China Air will try to be listed as an H-share company for Hong Kong investors next year", said Chen.

The building of Grand China Air is significant not only for Hainan Airlines, but also for promoting the comprehensive competitiveness of the country's civil aviation.

The Hainan Airlines Group, established 12 years ago, now owns 107 airplanes and operates more than 500 routes in the Chinese mainland. It also flies to Asian destinations such as Seoul, Osakaand Kuala Lumpur.

According to World Brand Lab's evaluation, the value of the brand Hainan Airlines is 3.52 billion yuan, the third highest of China's airline companies.

(Xinhua News Agency October 24, 2005)