Spring Airlines, once labelled itself as the first low cost carrier in China, now plans to list on the stock-exchange. The reporter learnt on 22nd May, presently Spring Airlines is in contacts with several internationally well-known investment banks seeking to implement the plan of selling its shares on the stock market, also the likely probable stock listing location seems to be Hong Kong. Besides, Spring Airlines wants to add aircraft number to six in 2006, and up to 9 by the end of next year.

Last July, after Spring Airlines launched, it utilised the market strategy of low airfares to 'strike' the competitors in the industry, for this reason it suddenly became well-known market-wise. But because of factors such as high overheads, the insufficient market maturity, Spring Airlines once reported a loss of two million yuan in a month. It wasn't until Feb this year when the third plane joined its fleet and the timing of Spring Festival, Spring Airlines actually earned profits in that month.

However, the development plan of Spring Airlines includes not only the simple recommendation of low price ticket and short-time loss remedy, its goal is the big scale expansion and operation hereafter. The management concerned at Spring Airlines yesterday shared with the reporter of Oriental Morning Post that Spring Airlines was conducting a financing plan, the executive program of this plan was divided into several steps. Firstly, the company wanted to enlist private funds, improve the overall asset values, then collaborate with the international investment bank organisations and introduce their investments, change the board structure of the existing Spring Airlines. After such operation for 1-2 years, bring the airline carrier onto the stock market. This management executive pointed, for the location of listing the airline on the stock market, Spring Airlines would consider a stock-exchange market that have more experiences in listing Chinese enterprises comparatively, so Hong Kong is the candidate location with the maximum possibility.

(Translation: CARNOC Tao Mengping)

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