LongJiang Airlines will be auctioned on 29 September 2020

Report by : Gan Yung Chyan, KUCINTA SETIA

According to company data, LongJiang Airlines will be auctioned on 29 September 2020.

According to LongJiang Airlines, the Intermediate People’s Court of Harbin City, Heilongjiang Province will conduct a public auction on the JD network judicial auction platform from 10 am on 29 September 2020 to 10 am on 30 September 2020 (except for delays). The auction target is part of the equity value project of LongJiang Airlines Co., Ltd. shareholders (Harbin Yaxiang Aviation Construction Investment Co., Ltd. holds 61% of Longjiang Airlines and Harbin Xiangyu Gold Products Sales Co., Ltd. holds 37% of LongJiang Airlines, total 98% equity).

According to the appraisal report, the book value of net assets of LongJiang Airlines  as of 31 August 2019 on the appraisal base date is 411.8354 million RMB. After the appraisal, the value of all shareholders' equity was 419.2998 million RMB, and the appraised value added was 7.4644 million RMB, and the appreciation rate is 1.81%.

The announcement showed that the estimated price of the auction is 410,913,800 RMB, the starting price is 328,731,400 RMB, the deposit is 65,746,208 RMB, and the price increase is 500,000 RMB.

LongJiang Airlines Co., Ltd. is established on 3 September 2014 and headquartered in Harbin, Heilongjiang. The company mainly operates air passenger and cargo transportation from Harbin to relevant domestic cities. On 9 February 2017, LongJiang Airlines obtained the its AOC and the corresponding "Operation Specifications" of the CCAR-121 Department of the CAAC. It is the first local airline in Heilongjiang Province approved by the Civil Aviation Administration. Harbin - Hefei -Zhuhai are the first two routes launched by LongJiang Airlines. LongJiang Airlines currently operates local routes to and from cities such as Hefei, Zhuhai, Yinchuan, Lanzhou and Urumqi.

Between 20 June and 21 July 2020, LongJiang Airlines introduced two new A320s on its routes. Currently, it has a fleet of 3 A320s and 2 A321s. LongJiang Airlines can be said to be the airline with the most difficult fate in recent years. There have been rumors of bankruptcy many times before.