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Share-holding airline company founded
By Zhang Bo (China Daily)
Updated: 2004-10-01 08:47

Air China Limited, the predecessor of Air China International Corporation - an airline company with the longest operating history in Chinese civil aviation industry, was formally founded September 30 in Beijing.

The new firm was established with the approval of the State-owned Assets Supervision and Administration Commission of the State Council.

With the verification and approval of the State Administration for Industry and Commerce, the company's name is "Air China Limited."

The registered capital of the company is 6.5 billion yuan (US$785 million), which will be converted to 6.5 billion shares.

Its operation scope includes: scheduled and non-scheduled international and domestic transportation of passengers, cargo, mail and baggage; international and domestic business flights; aircraft maintenance; ground handling and air express services; and in-flight duty-free service.

The newly formed Air China is supported by an optimized information technology network, is committed to provide air passenger and cargo services with safety, punctuality, economy, convenience, satisfaction and cost-effectiveness, a company statement said.

China National Aviation Holding Company and China National Aviation Corporation Limited, as promoters, held a meeting for the establishment of Air China Limited last week.

During the meeting, several proposals, including a report on the preparation of setting up the new company, a draft of the articles of association, as well as a proposal on composition of the Board of Directors and Supervisory Committee, were reviewed and approved in compliance with law and regulations.

Immediately after the founding meeting, the first meetings of the board of directors and supervisory committee were held.

Li Jiaxiang was elected the chairman of the board, and Ma Xulun was appointed president.

Three separate board committees were set up, including the Strategy and Investment Committee, the Audit and Risk Management Committee and the Nomination and Remuneration Committee.

Air China International, the predecessor of Air China Limited, was established in 1988.

In 2002, under the guidelines of the Chinese Civil Aviation Industry, China National Aviation Holding Company was formally founded, with Air China as the main body by consolidating with China National Aviation Company and China Southwest Airlines.

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