Carrier to help Xiongan get wings

China Southern Airlines, the nation's largest carrier by passenger traffic, plans to establish a wholly owned subsidiary in Xiongan New Area in Hebei province, to help the carrier to better operate its hub at the new Beijing airport, it said.

With total registered capital of 10 billion yuan ($1.5 billion), the Guangzhou-based airline said it would spend 2.5 billion yuan in cash and 7.5 billion yuan in tangible assets to establish a unit called China Southern Airline Xiongan Co in the new area, according to a filing released on Friday.

At the new Beijing airport in Daxing district, which is expected to become operational next year, China Southern is aiming for 40 percent of passenger throughput. By 2025, the airline is expected to deploy 250 planes and 900 flights at the new airport, it said.