SHENZHEN: Shenzhen Airlines, the mainland's largest private carrier, has borrowed 10 billion yuan (US$1.25-billion) from China Construction Bank (CCB) in its bid to become a national leader.

The agreement of credit was signed yesterday after which CCB vice-president said: "We cherish the relationship with Shenzhen Airlines. We would consider raising the credit further if the carrier so desired."

This was the third major cooperation deal signed by Shenzhen Airlines this year. The first was a US$1.5-billion credit deal with the Export-Import Bank of China, a State policy bank under the direct leadership of the State Council, in January, followed by a 5-billion-yuan (US$625 million) loan agreement with Agricultural Bank of China in July.

"All banks have guaranteed funds to the company's future development," Shenzhen Airlines board chairman Zhao Xiang said.

The airline plans to spend about 20 billion yuan (US$2.5 billion) to buy or rent aircraft in the next few years. It aims to become an important player even in the global market by 2015 by expanding its fleet of aircraft to 160.

"Based on our current growth rate, we expect the fleet could be expanded to 80 by the end of 2008. We will increase our investment in new aircraft and infrastructure to get a firm foothold in the industry," Zhao said.

The company became the country's largest private carrier after the State-owned shareholder auctioned off its 65 per cent stakes last May. It recorded good business despite rising fuel prices.

Its small fleet of about 40 aircraft earned a 350-million-yuan (US$43.75-million) profit in the first 10 months of this year, compared to 120 million yuan (US$15 million) in the whole of 2005.

(For more biz stories, please visit Industry Updates)