Citigroup Inc and other investors are in discussions to buy stakes in Shanghai-based Spring Airlines, accoring to two people familiar with the matter.

The airline wants to sell as much as 20 percent of the company to one or several investors, a person at the airline said.

The airline is considering the sale to raise 3 billion yuan (US$384 million) to help fund a purchase of 10 passenger jets, the person said. Spring Airlines also may sell shares through an initial public offering in 2009 to raise more fund.