Hainan Airlines, in which United States financier George Soros has a 21.2 per cent stake, has agreed to take 25 per cent of Hainan's new airport for 200 million yuan (about HK$186 million).
The Shanghai-listed B-share company will become the first mainland carrier to invest in an airport after it buys into Haikou Meilan International Airport in Hainan's provincial capital, Haikou.
The Civil Aviation Administration of China (CAAC) previously banned airlines from investing in airports to prevent carriers having a monopoly over the aviation industry, but a lack of funds has led to a relaxation of the policy.
Company official Bai Yan yesterday confirmed a general shortage of capital to finance airport construction had been a factor in Hainan Airlines' investment being approved.
The new Haikou Meilan International Airport will have a registered share capital of 800 million yuan, with the total investment cost put at 1.83 billion yuan.
A CAAC subsidiary will hold about 30 per cent of the new airport, followed by Hainan Airlines with 25 per cent and Hainan International Trust & Investment Corp with 10 per cent.
The remaining stakes will be divided among a number of enterprises.