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Air China To Complete Acquisition Of Shandong Airlines’ Parent Company

Jan 12,2023

Air China has become the majority shareholder in Shandong Airlines' parent company following an equity purchase and capital injection for the airline. The move will allow the flag carrier to grow its domestic market share and increase profitability, especially as it emerges from the pandemic. Let's find out more.

Majority owner

According to FlightGlobal, the Chinese flag carrier has upped its stake in Shandong Aviation Group (SAG), the parent company of the eponymous airline. Air China now owns 66% of the company, up from 49.4%, in addition to a 23% stake in the airline itself. The airline itself is owned by SAG (66%), Air China (23%), and 35% remains publicly traded, giving the flag carrier majority ownership.

The stake increase came after Air China agreed to buy shares of two investors in SAG, Shansteel Financial Holdings (1.4%) and Qingdao Qifa (0.9%), in a deal worth CNY32.9 million ($4.77mn). Now, the airline has partnered with two more owners to invest CNY10 billion ($1.45bn) into Shandong Aviation Group to grow its airline operations.

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