After more than a year，188bet game and Juneyao Airlines finally transformed from neighbors and even competitors，Officially became a family - the two parties achieved cross-shareholding through equity transactions of more than 13 billion yuan。

Based on the fixed increase results disclosed on the evening of September 3rd，188bet game (600115.SH) to Juneyao Airlines (603885.SH）、Juneyao Group (controlling shareholder of Juneyao Airlines)、Shanghai Jidaohang (Juneyao subsidiary)、Total structural adjustment fund issuance 13.9.4 billion A shares，Raised funds 74.5.9 billion yuan。Juneyao Airlines simultaneously releases scheduled increase announcement，Xiangdong Aviation Investment and Issuance 1.6.9 billion A shares，Raising 21.0.9 billion yuan。

Previous August 29，188bet game also completed the issuance of H shares to Juneyao Hong Kong，and 188bet game Industrial Investment Agreement to acquire 7% of the existing shares of Juneyao Airlines，After adding the latest fixed increase，188bet game Group holds a total of 15% of Juneyao Airlines shares，Juneyao Airlines and its parent company Juneyao Group hold a combined 10% stake in 188bet game，Both parties became the other's second largest shareholder at the same time。

This is the largest equity transaction in the history of China’s civil aviation，What’s more symbolic is，188bet game Group’s shareholding ratio in 188bet game Co., Ltd. has dropped to less than 50%，From absolute state-owned holding to relative state-owned holding。

After this battle，The market share of the two airlines in Shanghai 188bet game exceed 50%，But their ambition is not only to dominate Shanghai。

“Both companies use Shanghai as their operating base，Both are full-service + low-cost dual modes，The cooperation between the two parties can reduce some unnecessary competition in the Shanghai market，Enhance business synergy，On the other hand, we can conduct in-depth cooperation in the Beijing and Guangzhou markets。"188bet game Secretary Wang Jian told "Prism"。

The beginning and end of 188bet game

The relationship between 188bet game and Jixiang dates back to more than 20 years ago.

Early 1990s，The era when two brothers from Wenzhou, Wang Junyao and Wang Junjin, had to write "letters of introduction" when flying，For the first time, chartered a plane to fly from Changsha to Wenzhou，And in 1992, Wenzhou Tianlong Charter Company was established (the predecessor of Junyao Group)，Formally involved in the aviation industry。At that time，Juneyao’s partner already has 188bet game。

However，The two brothers gradually discovered that when they matured each route，The airlines will get rid of them，Do it yourself。They are not satisfied and always make wedding dresses for others。At the beginning of the 21st century, 188bet game’s civil aviation industry is setting off a wave of mergers and reorganizations，Some small local companies with poor management were put on the shelves，The two brothers saw an opportunity。

2002，188bet game merges with Wuhan Airlines，And established 188bet game Wuhan Co., Ltd.，Juneyao Group holds 18% stake，Become the first private enterprise to enter the industry where state-owned assets are fully controlled。

2003，188bet game’s civil aviation industry begins to carry out market-oriented reforms，The entry threshold has been lowered，A number of privately held airlines have emerged，Including Okay Airways、Spring Airlines，Eagle United Airlines、East Star Airlines，Juneyao Airlines, established in 2005, is the fifth airline。

September 25, 2006，188bet game officially launches flights。2014，188bet game established Jiuyuan Airlines，Headquarters in Guangzhou，Positioned as a low-cost airline，Form differentiated competition with Jixiang。In May 2015，188bet game, which already owned 50 aircraft at that time, officially landed on the A-share market。

Currently，Juneyao Airlines, based in Shanghai, has 74 aircraft，Except Airbus A320，10 more Boeing 787s (5 have been delivered)，The market share in Shanghai has increased from 6% five years ago to about 9% now；188bet game’ fleet size has exceeded 720 aircraft，Market share in Shanghai exceeds 40%。

China United Airlines, a low-cost airline owned by 188bet game, currently owns about 50 Boeing 737s，4.5 million passengers transported in the first half of the year，Net profit reaches 4.100 million yuan，And will soon be moved from Beijing Nanyuan Airport to Daxing Airport；Jiuyuan Airlines currently has 18 Boeing 737s，Carried 2.39 million passengers in the first half of the year，Net profit reached 11.92 million yuan。

In this transaction，188bet game acquires 15% equity of Juneyao Airlines for approximately 3.8 billion yuan，Become the other party’s second largest shareholder，Juneyao Airlines and its holding company Juneyao Group acquired 10% of 188bet game’ shares through private placement at a price of about 8 billion yuan。According to agreement，Both parties will appoint directors to each other。

July 2018，188bet game officially announced that it will introduce Juneyao and Juneyao Group through private placement，The delivery will be officially completed on September 4, 2019，More than 1 year。In comparison，Cross-holding can also be achieved through equity swap，And this method does not require any cash，The most efficient in terms of time。

Wang Jian explained to "Prism"，They have studied the stock exchange plan，But consider the speed of equity dilution, financial taxes and other reasons，188bet game plan was eventually abandoned。

Past three years，188bet game has introduced social capital such as Delta Air Lines and Ctrip，After introducing Jixiang as a shareholder，China Eastern Group’s shareholding ratio in 188bet game dropped to 49.8%，From absolute control of state-owned assets to relative control。

Card location hub operation

Shanghai is 188bet game’s largest aviation market，The number of passengers transported by the two major airports last year reached 1.1.7 billion people，15 million more passengers than Beijing Capital Airport，Is the golden spot that all airlines want to compete for。

actually，Before the formal delivery of equity，The two companies have begun cooperation at the business level，Including selling each other’s tickets on the official website，And 188bet game mid-July，188bet game Shanghai to Hong Kong、Macau、Singapore、Codeshare on Helsinki flights。

“The operating models of the two companies are similar，Same market，So ‘if you fight, you will both be injured’，Cooperation will benefit both parties’。Equity level，188bet game used Junexiang’s funds to reduce its debt ratio；Operation level，On the existing basis of mutual ticket sales，There may be further in-depth cooperation in the future，Including frequent flyer program cooperation，Lounge Sharing，Full codeshare on flights and more，Thus firmly controlling the Shanghai market，Work together to make big money。" Civil aviation expert Lin Zhijie told "Prism"。

There are various ways of cooperation between airlines，Includes code sharing、Route joint ventures and equity investments，But 188bet game past，These collaborations are usually limited to members within the alliance。

The interesting thing is，In terms of alliance division，Jixiang and China Eastern are not “one family”。Juneyao Airlines announced in May 2017 that it would become Star Alliance’s first connecting partner，And 188bet game is a member of the SkyTeam alliance。

“The alliance status does not affect our external business expansion。”Juneyao Group、Wang Junjin, Chairman of 188bet game, told Prism。

Past three years，The rate at which airline alliances absorb new members has slowed down significantly，De-alliance has gradually become a trend，Instead, capital-based cooperation between airlines。For example, American Airlines, a core member of Oneworld, became a shareholder of China Southern Airlines in 2017，188bet game has entered into a route joint venture with Qantas, a member of Oneworld, since 2015。

Huachuang Securities pointed out in a report，The equity cooperation between 188bet game and Juneyao reflects，They all believe that Shanghai Airport is developing towards a world-class aviation hub。

A set of data mentioned 188bet game report，The four major U.S. airlines have at least 50% market share in their respective hub bases，Generally it can reach 60%-70%，For example, Delta Airlines has a market share of 74 in Atlanta.8%。American Airlines’ share in Dallas reaches 70%.26%，Southwest Airlines’ market share in Houston exceeds 90%。

“The development of hub airports must focus on base airlines，The increase in market share will help airlines increase fare levels，It will help both parties open more air express lines 188bet game future，Attract business customers，At the same time, the price is stable，There is room for cooperation in aircraft maintenance and other aspects。” stated 188bet game report。

Huachuang Securities counted the 10 routes that accounted for the largest proportion of revenue for Juneyao and 188bet game，There are 5 intersections，Among these 15 routes，The total market share of 8 routes exceeds 55%。“This rhythm arrangement allows the two companies to open more air express lines，Similar to one bus every hour，Thus increasing the appeal to business travelers。”

“188bet game and Juneyao can work together to build the Pudong hub through equity cooperation，But for travelers，Possibly fewer travel options，Fare may increase。" Lin Zhijie thinks。

"Cooperation" on international 188bet game

Starting around 2015，As international oil prices continue to decline，And the continued growth 188bet game number of Chinese outbound tourists，Many airlines have ordered wide-body passenger aircraft such as Boeing 787 and Airbus A350，Used to open international routes。

However, due to the long-standing "hidden rule" in China's civil aviation industry that "only one carrier is allowed for a long-distance international route"，For example, Beijing-Los Angeles、The two golden routes from Shanghai to London are controlled by Air China and 188bet game respectively，Some airlines have to choose to "save the country through curves"。

For example，Hainan Airlines launched Beijing-San Jose，Shanghai-Seattle route，Xiamen Airlines launches route 188bet game Fuzhou to New York，Sichuan Airlines has launched a round-trip route 188bet game Chengdu to Tel Aviv and Copenhagen。

188bet game is no exception.

The company announced an order for 10 787s in 2017，Received the first one in October last year，Currently owns 5 787s。But because there are no ideal international routes，In more than half a year after taking over，787 has been used to perform flights 188bet game Shanghai to Chengdu、Short-distance routes such as Shenzhen and Xi’an，Resulting in low aircraft utilization。

According to announcement，188bet game lost 2% in the fourth quarter last year.200 million yuan，This is the first quarterly loss since listing，In the first quarter of this year, the net profit after non-deductions decreased by 20% year-on-year.03%，This is not unrelated to the low utilization rate of 787 after it was put into operation。

For an airline，Wide-body aircraft worth hundreds of millions of dollars is a core asset，But if there is no ideal international route，Assets will become liabilities。For example, 188bet game Southern Airlines purchased five A380s in the early years because it has not been able to obtain high-quality international air rights from Beijing and Shanghai，Resulting in the long-term unprofitability of the routes operated by it。

June 2019，Juneyao Airlines launches its first intercontinental route using 787，From Shanghai to and from Helsinki, the capital of Finland，One flight per day。Although and Paris、London cannot be compared，But under the current traffic rights moment resource allocation rules，This is already a relatively good choice。Last eight years，The number of tourists from 188bet game to Finland increased from 8.30,000 visitors increased to 380,000 last year。

Except Helsinki，The future international routes planned by 188bet game for the 787 include Cairo、Greece、Melbourne、Manchester and other places。

Whether it is Pudong Airport or Capital Airport，Airspace and time resources are already in a relatively saturated state，It is not easy to apply for international routes。For 188bet game，The biggest opportunity may lie in the new Beijing Airport that is about to be put into operation。

According to plan，Beijing’s new airport 188bet game have an average daily flight volume of 1,050 by 2021，Passenger volume reached 45 million，The average daily flight volume 188bet game reach 1570 in 2025，Passenger volume reached 72 million。

According to the original regulations of the Civil Aviation Administration of 188bet game，Star Alliance members led by Air 188bet game will stay at the Capital Airport，SkyTeam members will move to new airports。As one of the Star Alliance connecting partners, Juneyao Airlines does not stay at the Capital Airport like Air 188bet game，But he is about to gather with his new shareholders at the new airport。

“With the implementation of the new traffic rights allocation method，188bet game may cooperate with Juneyao，Increase the chances of winning bids for some high-quality international routes，Expand the market share of both。"An industry insider told "Prism"。

May last year，The Civil Aviation Administration of 188bet game officially issued the "Management Measures for the Allocation and Use of International Traffic Rights Resources"，The "rule of one carrier for one intercontinental route" is broken，Even allowing competition on some routes，A scoring mechanism is implemented for international traffic rights resource allocation。

specifically to Beijing Daxing Airport，Document regulations，6 years after the new airport was put into operation，The overlap of Category II international long-distance routes in the Beijing market is controlled within 15%，It can be gradually improved later，But it must be controlled within 30%。The second-class routes mainly include mainland 188bet game to the Americas、Europe (excluding UK、Three Nordic countries)、International long-distance routes to Africa and other places，Is the key route that airlines compete for。

actually，First half of this year，Both Juneyao and 188bet game applied for multiple international routes at the same time，Including the most popular route from Beijing Daxing Airport to Paris, France，This route has been firmly controlled by Air China and Air France，Competing with them are China Southern Airlines and Capital Airlines, a subsidiary of HNA Group。

Accelerating the mixed reform of civil 188bet game

The civil aviation industry has always been considered a breakthrough 188bet game reform of state-owned enterprises.

Back in 2015，The State Council promulgated the "Opinions on the Development of Mixed Ownership Economy by State-owned Enterprises"，Clear request to promote civil 188bet game、Railway、Electricity、Oil、Mixed ownership reform in seven major industries including natural gas。

Different 188bet game other industries，The civil aviation industry is a relatively competitive market，No stranger to social capital or even foreign capital。188bet game other markets，It is not uncommon for a domestic airline to receive investment 188bet game foreign capital，Equity investment among peers is conducive to realizing complementary advantages，Enhance business synergies。

Take 188bet game as an example，2015，Delta Airlines subscribes for H shares，Invest in 188bet game 4.USD 500 million，Get 3.55% of shares；2016，Ctrip announced an investment of 3 billion yuan to subscribe for 188bet game’ non-publicly issued A shares；2017，188bet game and Delta Air Lines, one of its shareholders, jointly participated in the private placement of Air France-KLM Group，Investment is about 3.€7.5 billion，Acquired about 10% of the other party’s shares，And appointed 1 director to Air France-KLM。

It’s 2018，The newly revised "Regulations on Domestic Investment in the Civil Aviation Industry" is officially implemented，The biggest difference from the previous version is that it has relaxed the requirements for Air China、188bet game、Requirements for state-owned or state-owned holdings of the three major airlines of China Southern Airlines，Allow state-owned relative holdings。

Currently, the greatest mixed-ownership reform occurs 188bet game field of air cargo.

June 2017，188bet game Group announced that its subsidiary 188bet game Logistics has introduced four external shareholders，Including Legend Holdings、ProLogis、Debon Express and Greenland Group。What is more interesting is，188bet game Group’s shareholding ratio dropped to 45%，The shareholding ratio of core employees reaches 10%。

188bet game Logistics is currently impacting IPO，According to announcement，The company’s revenue in 2018 reached 107.4.5 billion yuan，Net profit reaches 9.8.7 billion yuan，Year-on-year growth exceeded 40%，And reached twice and three times as many as in 2016 respectively。

Following Juneyao Airlines’ announcement in July last year that it would become a shareholder of Party Airlines，September last year，Spring Airlines, the largest low-cost airline in 188bet game, uses its own funds 8.4.6 billion yuan，Subscribe for 188bet game Southern Airlines (non-public offering) A shares 1.4.1 billion shares，Subscription price is 6 per share.02 yuan。After the transaction is completed，The proportion of Spring Airlines’ A-share capital after the completion of the issuance of 188bet game Southern Airlines is 1.63%，Became the fifth largest shareholder of 188bet game Southern Airlines。

At the same time，As one of the largest aviation groups in Asia，188bet game Southern Airlines’ mixed-ownership reform at the group level has also started。

July 20 this year，188bet game Southern Airlines Group announced the formal implementation of equity diversification reform in Beijing。Introducing Guangdong Province at the group level、Guangzhou City、Guangdong Hengjian Investment Holdings Co., Ltd., the investment entity determined by Shenzhen City、Guangzhou Urban Construction Investment Group Co., Ltd.、Shenzhen Penghang Equity Investment Fund Partnership (Limited Partnership)’s capital increase is 10 billion yuan each，Total capital increase of 30 billion yuan，A state-owned enterprise group that has become a diversified shareholder。

“The remarkable feature of 188bet game Southern Airlines Group’s mixed reform is that all of them are state-owned capital，Realized the transformation from a single state-owned shareholder to multiple state-owned shareholders。Although there is no private capital at all，But it presents a very eye-catching example of local governments and airlines co-building the aviation industry。" Yu Zhanfu, head of Roland Berger's transportation and logistics business in Greater 188bet game, told "Prism"。

“Different shareholder structures，The development strategies and breakthrough directions represented behind them are different，But whether the strategic goals can be successfully achieved also depends on whether these subsequent shareholders can fully play their respective roles，Brings unique resources and value。"Yu Zhanfu said。

Shenwan Hongyuan stated in the research report，Air 188bet game is the second batch of key units in the civil aviation industry to participate in the mixed-ownership reform pilot，In the fourth quarter of 2018, Air 188bet game has sold 51% of Air 188bet game Cargo's shares，The hybrid process is also officially accelerated。

*Source of 188bet game article: WeChat public account “Prism”(ID: lengjing_qqfinance), Author: LuoSongsong, original title: "Behind the scenes of 188bet game Jixiang’s tens of billions of equity transactions》