China Eastern Airlines (MU, Shanghai Hongqiao) has partnered privately-owned Juneyao Air (HO, Shanghai Hongqiao) in the establishment of Sanya International Airlines, a new carrier which will use Sanya Phoenix International Airport and the upcoming Sanya Hongtangwan International Airport as bases.

"In order to seize the opportunity of the establishment of a pilot free trade zone and a free trade port with Chinese characteristics and the construction of an international tourism consumption hub in Hainan, and to give full play to the unique advantages of air transportation, China Eastern [...] intends to jointly establish 'Sanya International Airlines Co., Ltd.'," the statement said.

According to a stock exchange filing, the start-up is a joint venture between China Eastern (51%), the Hainan Communications Investment Holdings Co. (10%), the Sanya Development Holdings Co. (10%), Juneyao Air (15%), and Ctrip Travel Network Technology (14%). However, Juneyao Air will be entitled to exercise more than 10% of all voting shares during a general meeting and is therefore deemed to be a substantial shareholder.

Overall, Sanya International Airlines will have a registered capital of between CNY3-6 billion yuan (USD420-840 million).

Hainan Communications is wholly-owned by the Government of Hainan Province and oversees investments and financing for infrastructure projects in the region. For its part, Sanya Development is wholly-owned by the Sanya Municipal People’s Government and is responsible for its investments and use of capital.

No timelines for the launch of Sanya International Airlines (its provisional name) were given as it must first secure approval from Beijing.

It is recalled that in September 2018, the Sanya Municipal People’s Government signed a 60/40 joint venture agreement with Capital Airlines (China) (JD, Beijing Daxing International) over the proposed establishment of Sanya Airlines (Sanya). However, no further commentary on that project's progress has been made public.