(Yicai Global) March 20 -- Tempus Global Business Service Holding Ltd. plans to strategically invest in Russian airline I Fly Ltd. for bilateral business cooperation focusing on the operation of regular flights between China and Russia.
Tempus signed a strategic partnership agreement with I Fly, its shareholders and its actual controller Burtin Ivan Aleksandrovich yesterday, said the Guangdong-based air transportation ticketing and tourism services provider yesterday.
Provided that I Fly and its shareholders meet the relevant prerequisites, Tempus or its designated entity will be entitled to buy 10 percent of the shares offered in I Fly's first round of new issues within this year and to purchase shares offered in the airline's second and third rounds of new issues to be held by the end of 2020.
The two parties agree that I Fly and its shareholders shall ensure that Tempus will become the airline's biggest shareholder when all new issues are completed by Dec. 31, 2020, given the combined stake of Tempus and its designated entity, the statement added.
However, the announcement did not disclose the details of the prerequisites for the equity deal.
The two companies will jointly push for the opening of new flights between more Chinese and Russian cities operated by I Fly. The Russian airline company plans to offer at least 11 new flights during the spring-summer season of this year, involving various Chinese cities such as Shenzhen, Taiyuan, Nanjing, Fuzhou, Changsha, Wuhan, Nanning, Jinan and Guiyang, and Russian cities Moscow and St. Petersburg.
The pair will also consider opening routes between Russia and Europe, the Middle East and the Caribbean, using Moscow as a transit hub to send Chinese visitors to these destinations.
I Fly will lease all of its advertising resources on its routes to Tempus for the latter's use, including but not limited to in-flight and fuselage advertising and magazines.
The two parties also agreed that I Fly will entrust Tempus to build and operate its electronic payment platform and will help Tempus or its designated company get a payment license in Russia, the statement added.
I Fly and its shareholders will also help Tempus gain access to local tourism resources in Russia such as accommodation, transportation, tickets to scenic spots, entertainment and shopping to better serve Chinese tourists visiting the country. Tempus will also help I Fly organize tours for Russian tourists to visit Sanya, South China's Hainan province, Phuket, Thailand, and Nha Trang, Vietnam, and develop more group tour routes in China.