Afternoon, August 4，Wuxi Transportation Group issued an official announcement，August 4th morning，The signing ceremony of the equity transfer framework agreement between Wuxi Transportation Group and Yunnan Jingcheng Group on Ruili 188bet mobile login Co., Ltd. was held at Wuxi Hubin Hotel，Huang Qin, Secretary of the Municipal Party Committee, met with Dong Lecheng, Chairman of Jingcheng Group, and his delegation，And attended the signing ceremony。

This is after Hunan Province invested in Yunnan Red Earth 188bet mobile login (now renamed Hunan Red Earth 188bet mobile login)，Another Yunnan local airline that will be acquired by capital from other provinces。

Ruilihang sells controlling stake

Ruili 188bet mobile login was approved by the Civil Aviation Administration of China in May 2013，Starting in May 2014。As of the end of June 2020，operating 20 aircraft in total，74 routes，Route network covers 43 domestic and foreign navigation cities。

Previously，Ruili 188bet mobile login is 70% owned by Yunnan Jingcheng Group Co., Ltd.，Dong Lecheng, chairman of Jingcheng Group, holds 30% shares。Wuxi Transportation Group is a wholly state-owned company wholly owned by the Wuxi Municipal People’s Government，Foreign investment projects include public transportation、Metro、Road Passenger Transport、Citizen Card、General aviation airport, etc.。

This signing did not disclose the specific shareholding amount of Wuxi Transportation Group，However, according to China Business News reporter，Ruili 188bet mobile login’ major shareholder Jingcheng Group hopes to sell the controlling stake，Many companies have previously participated in the due diligence investigation of the equity transfer of Ruili 188bet mobile login，Especially on the day when the framework agreement was signed with Wuxi City，Due diligence investigation of another intended acquirer is still in progress。

Since what is signed this time is only the framework agreement，It has not yet been determined whether Ruili 188bet mobile login will move its base camp to Wuxi in the future。However，Wuxi Transportation Group has stated in the announcement，As a national transportation hub city，Having a local airline will accelerate the development of Wuxi’s aviation hub、Achieving high-quality development of hub economy is of special significance，It will not only fill the gap of air transport enterprises in Jiangsu Province，It will also help Wuxi form an air transportation corridor open to the outside world，Serving the local economic development pattern，Promote the city’s international influence。

In fact，Wuxi has long desired to have a “local airline”。Last year, Wuxi Transportation Industry Group participated in the due diligence investigation of Hong Kong 188bet mobile login, which was in financial difficulties，However, the two parties did not reach an agreement in the end。

And in Yunnan market，Including Hongtu 188bet mobile login, there were 6 base 188bet mobile login，Ruili 188bet mobile login’ market share ranks fifth among the six base companies，Intense competition and the impact of the epidemic，Ruili 188bet mobile login also reported financial difficulties、Message of delayed employee wages。

More 188bet mobile login are on the market

Before Ruili 188bet mobile login，Okay Airways, the first domestic private airline to fly into the sky，At the parent company level, state-owned Huadian Group and Hong Kong-listed real estate company Sino-Ocean Group have intervened。The other two private 188bet mobile login, Qingdao 188bet mobile login and Red Earth 188bet mobile login，Also received investments from enterprises or funds affiliated to the Qingdao Government and the Hunan Government。

Among them，Nanshan Group, the major shareholder of Qingdao 188bet mobile login, and Qingdao Urban Construction Investment (Group) Co., Ltd. signed the "Aviation Sector Acquisition Framework Agreement"，Plans to transfer related aviation and other assets to Qingdao Urban Investment。The fund under the Hunan Provincial Government became the second largest shareholder of Red Earth 188bet mobile login through investment，And move the headquarters of Red Earth 188bet mobile login from Kunming to Changsha。

"In recent years，On the one hand, in order to improve the level of safe operation，Few new mainline 188bet mobile login approved，On the other hand, in order to develop the local economy，Many local governments want to have their own 188bet mobile login，" Civil aviation industry insider Lin Zhijie pointed out to reporters，So "shell resources" are becoming more and more valuable，Many small 188bet mobile login are considering changing owners and moving。

Looking back at the round of private 188bet mobile login that took to the skies from 2004 to 2006，Except the base is located in Shanghai、Spring 188bet mobile login has been listed (39.480, -0.64, -1.60%) and Juneyao 188bet mobile login (9.490, -0.08, -0.84%)，East Star 188bet mobile login、Emerald 188bet mobile login has been cancelled，Eagle United 188bet mobile login has long been controlled by state-owned assets，Transform into Chengdu 188bet mobile login。

Subsequently，Urumqi 188bet mobile login of Hainan 188bet mobile login，Capital 188bet mobile login，Beibu Gulf 188bet mobile login and Western 188bet mobile login，It has also been announced that it will receive additional capital from the local government or its affiliated companies，Transformed into a state-owned holding。But according to the reporter’s understanding，Since all signed are framework agreements，Afterwards, a series of work such as price and debt need to be negotiated，Currently, neither Ukraine 188bet mobile login nor China Capital 188bet mobile login has received any “real money” capital increase，The restructuring work of various 188bet mobile login under HNA has been suspended。

“Many 188bet mobile login have changed owners in recent years，Mainly because the civil aviation industry is an industry with both high resource barriers and scale barriers，For small and medium-sized 188bet mobile login，Insufficient resources，Limited scale，High operating pressure，It’s not easy to make money，Once oil prices are high、Exchange rate depreciation or a downward cycle of weak market demand，Mergers and reorganizations will also be inevitable for development，" Civil aviation industry insider Lin Zhijie pointed out to reporters，During the epidemic，188bet mobile login basically lose money every month，Small and medium-sized 188bet mobile login may lose money every day，Cash flow faces a more severe test，If the epidemic continues，More 188bet mobile login may actively participate or passively participate in this round of mergers, acquisitions and reorganizations。

*Source of this article：Yicai.com, author:Chen Shanshan, original title：《The Wuxi government plans to take a controlling stake in Ruili 188bet mobile login as the epidemic accelerates the restructuring of civil aviation》.