China Eastern Airlines plans to acquire a 25-percent stake in the Qingdao Liuting International Airport as the nation's third-largest carrier seeks to further diversify, company sources said.
Details of the planned acquisition will be announced today in Qingdao City of Shandong Province along China's east coast.
The Civil Aviation Administration of China's eastern branch and the Qingdao municipal government are two major investors in the airport, holding 35 percent and 45 percent shares, respectively.
Total investment in the airport was not disclosed.
"The move reflects the airline's latest attempt to expand its operations outside its main flight business," said Zhang Linchang, a China Eastern spokesman. "It will benefit our business in Qingdao and provide more space for the company's future development in that region."
Meanwhile, large-scale renovation and expansion projects will begin immediately after the acquisition, the sources said.
The first-phase expansion, including construction of a new terminal building and the enlargement of parking areas, is scheduled to be completed by 2003. The airport's runway also will be lengthened by 800 meters to 3,400 meters.
After its expansion, Qingdao Liuting International Airport will have a capacity to handle 5.2 million passengers and 90,000 tons of cargo a year.
Shanghai-based China Eastern currently operates nearly 70 flights out of the Liuting Airport every week.
(Eastday.com.cn 09/27/2001)
