Beijing-based out-of-home advertising firm AirMedia Group Inc (NASDAQ: AMCN) said that one of its consolidated entities AirMedia Group Co Ltd has recently entered into a strategic alliance agreement with HNA Group subsidiary HNA Xinhua Culture Holding Group Co Ltd to form an industry development fund of in-flight internet to explore the opportunity of in-flight internet service and in-air multimedia platform.
Such arrangement will include the establishment of a joint fund management company by AM Advertising and HNA Culture each holding 50% of the equity interest therein.
The joint fund management company will act as the general partner for the fund.
HNA Culture will be responsible for obtaining exclusive rights to develop and operate in-flight internet service and in-air multimedia platform from member airlines of HNA Group.
In a power of attorney, HNA Group authorized HNA Culture to act as the exclusive general coordinator for HNA Group´s in-flight connectivity project, with full authority to coordinate with all member airlines of HNA Group, HNA Technik, equipment providers and satellite service providers in setting up in-flight internet connectivity for HNA Group-operated airplanes.
The group now operates more than 400 airplanes on over 570 domestic and international routes that connect more than 190 cities. Member companies under Hainan Airlines Group include Grand China Airlines, Hainan Airlines, Tianjin Airlines, Lucky Air, West Air, Yangtze River Express, my Cargo, Ghana AWA Airlines, Aigle Azur Airline, HNA Technik, HNA Sales, HNA Aviation Academy, HNA Cargo, myTECHNIC and others.
According to a report released by the Civil Aviation Administration of China, Hainan Airlines Group had 42 m air passengers in 2012, representing approximately 13% of the total air passengers in China in 2012.
AM Advertising will act as a limited partner, primarily in charge of fundraising and capital contribution for the Fund. The Fund has a planned fund raising target of approximately RMB1.0bn, to be adjusted according to the Fund´s operational needs.
Find out more at www.airmedia.net.cn.