Ruili Airlines officially announced on 28 March 2021 it has been acquired by Wuxi Transportation Industry Group and now it is Wuxi's local airline.
Mainland Chinese media The Paper noted that Ruili Airlines is a holding subsidiary of Wuxi Transportation Industry Group, a "Top 500 Chinese Service Industry Enterprise". This means that the previous equity acquisition process has been completed.
The current controlling shareholder of Ruili Airlines is Wuxi Transportation Industry Group with a background of state-owned assets, which holds 57% of the shares. The original major shareholder, Yunnan Jingcheng Group, has dropped from 70% to 13%. Dong Lecheng, President of Jingcheng Group and Chairman of Ruili Aviation, personally holds 30% of the shares.
Regarding the follow-up strategic development, Ruili Airlines exclusively stated to The Paper that under the premise of in-depth cooperation between Wuxi Transportation Industry Group and Yunnan Jingcheng Group, Ruili Airlines will make full use of Yunnan to launch new routes to West Asia, South Asia, Southeast Asia, Pacific Ocean and Indian Ocean. Relying on the Group's resources, it will continue to introduce aircraft and expand the fleet size.
This time, Ruili Airlines will use the opportunity of the summer and autumn seasons of 2021 to spread the East China route, promote the construction of dual bases in Wuxi and Kunming, and strengthen the development of overnight bases in Shenyang, Lanzhou and Mangshi.
The 14th Five-Year Plan of Ruili Airlines was formulated in conjunction with the 14th Five-Year Plan to continue to expand and strengthen the aviation sector.
Since 28 March 2021, Ruili Airlines has continued to launch new routes such as Wuxi=Kunming=Mangshi, Wuxi=Chongqing, Wuxi=Xi'an, Wuxi=Shenyang, Kunming=Baotou=Tianjin, Kunming=Baotou, Bazhong=Qingdao, Kunming=Weifang, Kunming=Wushan=Yantai, Kunming=Zhuhai=Fuzhou, Kunming=Jinan=Dalian, Shenyang=Huolinhe=Hohhot, Shenyang=Taiyuan.
There are 15 domestic routes such as Nantong=Mangshi=Xishuangbanna, Xishuangxishuangbanna=Nanning=Nantong and Hohhot=Dalian. All flights are operated by Boeing 737 aircraft.
Ruili Airlines launched its flight on 18 May 2014. Its main operating base is located at Kunming Changshui International Airport. It has a fleet of 20 aircraft and has been in safe operation for nearly 7 years. So far, the number of flights has exceeded 133,000, and nearly 20 million passengers have been transported.
Before the equity change, Ruili Airlines was the first local airline in Yunnan Province and a wholly-owned subsidiary of Yunnan Jingcheng Group. It was wholly-owned by Dong Lecheng, a minority entrepreneur in Yunnan Province, with a registered capital of 1 billion RMB.
On 4 August 2020, according to the official WeChat account of Wuxi Transportation Group, the signing ceremony of the framework agreement on the equity transfer of Ruili Airlines Co., Ltd. between Wuxi Transportation Group and Yunnan Jingcheng Group was held at Wuxi Hubin Hotel. Wuxi Municipal Party Committee Secretary Huang Qin met with Jingcheng Group Chairman Dong Lecheng and his party attended the signing ceremony.
The framework agreement for the equity transfer of Ruili Airlines signed at that time was the first step for Wuxi Transportation Group to officially launch the acquisition of a controlling stake in Ruili Airlines.
Wuxi Transportation Industry Group Co., Ltd., formerly Wuxi Transportation Assets Management Co., Ltd., was established on November 5, 2001. In March 2003, with the approval of the Wuxi Municipal People's Government, it was renamed and established as Wuxi Transportation Industry Group Co., Ltd. The Wuxi Municipal People's Government directly authorized the operation and management of state-owned assets within the authorized scope. The company has a registered capital of 5.745 billion yuan.
According to the official disclosure of Wuxi Transportation Industry Group, the acquisition of the shares of Ruili Airlines is one of the important measures of Wuxi Transportation Industry Group to implement the Wuxi Municipal Party Committee and Government’s efforts to accelerate the high-quality development of the “three major economies” such as the headquarters economy, hub economy and digital economy.
As a national transportation hub city, having a local airline is of special significance for Wuxi to accelerate the development of an aviation hub and achieve high-quality development of the hub economy. It will not only fill the gaps in Jiangsu's air transportation enterprises, but also help Wuxi to open up to the outside world.
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