China's 4th largest airline opens

China has officially launched its fourth largest airline, Grand China Airlines Holding Co., Ltd, after groundwork for the merger was laid slightly over three years ago.

With a registered capital of RMB 3.085 billion, the new airlines is a consolidation of four carriers – Hainan Airlines<900945><600221>, Xinhua Airlines, Chang'an Airlines and Shanxi Airlines. Its first flight commenced on Nov. 29 from Beijing to Dalian.

Sources reported that the venture has three shareholders, with the Hainan government owning 48.6%, U.S. financier and chairman of Soros Fund Management, George Soros, owning 18.6% and Hainan Airlines's parent HNA group with 32.8% stakes in Grand China.

News of Grand China's plans to list in Hong Kong broke as early as March this year, with RMB 5 billion set as the target for the stock sale, according to Grand China chairman Chen Feng.

China's travel boom is set to continue for the next few years, as the country seeks overseas business partners, as well as a steady influx of foreign investors. Aviation regulators are predicting that its flight passenger numbers will hit 270 million by 2010, based on an annual average of 14.5% growth. Grand China is reportedly planning to base itself at Beijing Capital International Airport to operate international, domestic and cargo air transport flights.