(Yicai Global) Nov. 26 -- The helicopter services unit of China Southern Airlines, the country’s biggest carrier, has brought in new investors as part of the so-called mixed ownership reform of China’s three state-owned airlines and their major subsidiaries.

Under the deal, the registered capital of China Southern Airlines General Aviation will increase to about CNY1.3 billion (USD198 million) from CNY1 billion and China Southern’s stake will drop to 57.9 percent from 100 percent.

An investment fund under the State-owned Assets Supervision and Administration Commission will own 14.1 percent, while China Southern Airlines Group Capital Holding and an investment firm of China Southern Power Grid will each take a 10 percent stake. In addition, the chopper unit’s employee stock ownership platform will have 8 percent.

Mixed ownership reform is aimed at improving corporate governance and enhancing employee motivation.

Formed in 1980 and based in southern Guangdong province, China Southern Airlines General Aviation is China’s second-largest operator of offshore oil and gas field flight services. With more than 60 helicopters, it also offers other services such as maritime rescue and pilot training.

The cargo transport unit of China Southern is expected to complete the process of bringing in strategic investors soon, a manager with its parent company told Yicai Global. The nation’s civil aviation commission announced earlier this month that it has given approval for China Southern to set up China Southern Cargo.

Editors: Tang Shihua, Peter Thomas