Hainan Airlines, a carrier affiliated with conglomerate HNA Group, is planning to withdraw its holdings from low-cost airline Urumqi Air but retain management rights, The Paper reported on Tuesday night.

Hainan Airlines has reached an agreement with the Urumqi municipal government, that it will transfer its holdings of Urumqi Air to the latter.

After the transaction, the government or its designated subsidiaries will hold 70% of Urumqi Air’s shares, while HNA Holdings will hold 30%.

According to the agreement, the board of directors of Urumqi Airlines will be adjusted based on the shareholding ratio.

The chairman of the board of directors will be recommended by the government or its designated subsidiaries, while the general manager will be recommended by Hainan Airlines.

Under the leadership of the board of directors, the professional team of Haihang Holdings is responsible for the safety, production and operation management of Urumqi Air.