China Express Airlines to Divest Crew Training Unit for $84.1 Million

China Express Airlines, based in Chongqing, is poised to divest its entire stake in its crew training division, Huaxia Aviation Education Technology Industry Co. Ltd., to Huaxia Yunyi International Education Technology Co. Ltd. for a transaction value of CNY604.43 million (USD84.1 million). This move, disclosed in a February 21 filing, aims to allow the airline to concentrate more effectively on its primary business of flight operations.

Huaxia Aviation Education Technology, with registered capital amounting to CNY332 million (USD46.2 million), engages in a variety of aviation-related activities, including training for crewing, maintenance, and dispatch. China Express Airlines, through two subsidiaries, holds an 80% stake in Huaxia Yunyi International Education, indicating a strategic realignment within its broader corporate structure.

The regional carrier, which serves 120 airports across two countries, is majority-owned by China Express Airlines Holding (Shenzhen) Company Limited with a 28.41% share. Hu Xiaojun, the airline’s chairman, has a significant influence over the company, owning 99% of China Express Airlines Holding and also controlling Huaxia Yunyi International Education.

The transaction is subject to approval at an upcoming shareholders’ meeting. Other notable shareholders in China Express Airlines include Shenzhen Rongda Supply Chain Management Partnership (10.97% stake), Tianjin Huaxia Tongrong Enterprise Management Centre (6.26%), Shenzhen Cheng De Yong Sheng Investment Development (5%), and Shenzhen Ruicheng Environmental Technology Partnership (4.44%).

This strategic sale reflects China Express Airlines’ intent to streamline its operations and focus on enhancing its core aviation services.