Air China Buys 31% Holding in Tibet Airlines
By Katie Cantle, ATW Daily News | Jul. 29, 2011
Air China invested 86.8 million yuan (US$13.5 million) to take a 31% stake in Lhasa-based startup Tibet Airlines, which officially launched operations this week. The move is part of Beijing-based CA's continued expansion into West China.
CA purchased the stake from Tibet Autonomous Region Investment Co., which originally held 51%. It also sent pilots, cabin crews and technicians to the new carrier for its formal launch.
Tibet Airlines currently operates one Airbus A319 on routes from Lhasa to Ali, Chengdu and Chongqing. Two additional A320s are slated to be added to the fleet in August and September. It plans to expand its fleet to 20 aircraft in the next five years.
Tibet expects to open a new route to Beijing at year end and eventually hopes to operate international routes.