Sichuan Airlines to boost with Airbus A330 aircraft and capital injection from China Southern Airlines

Chengdu-based Sichuan Airlines welcomed the news that one of its largest shareholders, China Southern Airlines, will invest about RMB 4.7 billion ($659 million) in the airline. The agreement also includes the transfer of Airbus A330-300 aircraft.

The investment will be made in three installments starting in mid-January, with a preliminary cash investment of RMB 2.3 billion ($332 million), as stated in a filing from China Southern Airlines. This will be followed by the transfer of the only A330 in mid-year, for a fee of RMB 919 million ($128 million). The final cash injection is expected to be transferred by March 2025.

More capital expected

China Southern Airlines, Sichuan Airlines’ largest shareholder, currently owns 39% of the company, but other shareholders including Shanghai-based China Eastern Airlines, Beijing-based Air China and education group Chengdu Yingko will also receive additional capital.

China Southern Airlines reiterated its vision of using this investment to “replenish working capital and reduce financial security risks” and expand the “scope of enterprise development” in Sichuan province. Once the capital injection is complete, CN has confirmed that this will not impact cash flow and Sichuan Airlines will remain an affiliated airline.

Photo: Tersek | Shutterstock

The Chengdu-based airline made a loss in 2022, with a net loss of RMB 10 billion ($1.4 billion), more than double that of the troubled carrier in 2021.

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Takeoff from two airports in Chengdu

Chengdu, with a population of over 16.3 million people, currently has two airports served by Sichuan Airlines. Although Chengdu Shuangliu International Airport (CTU) is currently used primarily for domestic traffic, it was once the city’s main airport until the opening of Chengdu Tianfu International Airport (TFU), and now most international flights are routed to Chengdu Tianfu Airport. Arriving at the international airport. From here, Sichuan Airlines flies to Bangkok, Cairo, Chiang Mai, Dubai International, Ho Chi Minh City, Hong Kong, Istanbul, Kathmandu, Krabi, Los Angeles, Melbourne, Moscow – Sheremetyevo, Osaka – Kansai, Phuket, Rome – Fiumicino, St. Petersburg, Seoul – Incheon , Singapore, Sydney, Taipei-Matsuyama, Taiyuan, Tokyo-Narita, Vancouver.

Vancouver, Canada (YVR) was the company’s first long-distance service, launched in June 2012, followed by Melbourne, Australia (MEL) in February 2013.

All Airbus aircraft

data retrieved from ch-aviation It can be seen that the airline currently operates a fleet of 195 Airbus aircraft, including 18 inactive aircraft. include:

The company also has 20 Comac C919s on order, along with further Airbus aircraft, including two A319-100Ns, one A320-200N, three A321-200Ns and seven A350-900s.

Photo: Markus Mainka | Shutterstock

Sichuan Airlines is the parent company of domestic airline Chengdu Airlines, based at Chengdu Shuangliu International Airport. The company operates 75 aircraft across its fleet, including the COMAC ARJ21-700 launch customer.