Suspicious arrest at Shenzhen Airlines

CHINA’S security officials have removed Shenzhen Airline’s president – Li Kun – from his position while they investigate him for ‘economic crimes’. This follows the similarly suspicious arrest of Li Zeyuan, Shenzhen Airlines’ majority shareholder.

Fan Cheng, the airline’s Communist Party secretary and coincidentally Air China’s vice-president, will replace Li Kun. Air China is the second largest shareholder of the airline with 25 per cent after Li Zeyuan who owns 65 per cent. With Fan in charge, Air China’s threatened takeover, which both Lis were resisting, is not only guaranteed but also at a far cheaper price than it would have been had they agreed to the sale.

Li Zeyuan beat Air China to ownership of Shenzhen Airlines five years ago, a defeat Air China has been trying to reverse ever since. It wants the airline so that it can compete against China Southern Airlines, the country’s largest domestic carrier, along the southern coast, where it is weak but the other two airlines are strong.

Kong Dong, Air China’s chairman, said: “Shenzhen Airlines is very important [to us] in terms of building a strategic network.”

This is not the first time that critics have alleged Air China has used China’s security forces to attack its rivals. Last year, it took over East Star Airlines after its owner, Lan Shili, rejected Air China’s offer and was subsequently arrested on unspecified charges.

Share this story

Related Topics

Latest news

IATA: Slow improvement in air cargo demand in August

By Damian Brett

The latest statistics from IATA show that air cargo volumes are improving only slowly despite a pick up in business…

Read More

Share this story

Delta Cargo facilitates airfreight bookings with API interface

By Rachelle Harry

Delta Cargo has launched its new, free application progamme interface (API) that enables its cargo customers to connect their own…

Read More

Share this story

Qatar Cargo signs up for SkyCell containers

By Damian Brett

Qatar Airways Cargo has signed a lease agreement for temperature-controlled pharma containers with SkyCell. The airline said the addition of…

Read More

Share this story