Hong Kong-listed China Southern Airlines Co plans to offer up to 1 billion A-shares this year,the homeway.com reported.
The proceeds will help the carrier to rent 20 Boeing 737-800 aircraft and two Boeing 747-400 jets,a deal that could cost 12.5 billion yuan (US$1.5 billion).
As to the Air China crash,which reported 119 dead yesterday morning,Yan Zhiqing,director of Southern Airlines,said it won't affect his company's share plan but stressed "security is the top concern for our company".He said he hopes it won't result in another rise in insurance premiums.
Last year,Southern Airlines'insurance costs jumped by 45 percent to 124 million yuan a global rise after the September-11terrorist strikes.
The cost rise has caused a cutback in Southern Airlines'profit.The company reported a net profit of 340 million yuan in 2001, short of analysts'forecast of 400 million yuan.In the previous year net profit was 502 million yuan.
According to Yan,Southern Airlines is preparing for its merger with China Northern Airlines and Xinjiang Airlines Co.He said he hopes the merger will be complete in the first half-year.
By then,Southern Airlines,with 180 aircraft combined,will be China's largest air group in terms of its fleet size.
The merger is part of China's consolidation plan in the aviation sector to form three aviation groups.The other two will involve Air China and China Eastern Airlines.
( eastday.com April 16, 2002)
