Han Ximin

THE president of Shenzhen Airlines, Li Kun, is being investigated for his alleged involvement in financial crimes, the airline said in a release Saturday.

The company refused to release further details regarding the case.

Air China vice president Fan Cheng had been appointed acting president of the country’s fifth-largest air carrier, the release said.

Fan, 54, was appointed Party secretary and vice chairman of Shenzhen Airlines on Dec. 1 last year, after Li Zeyuan, a senior adviser who effectively controlled the airline, was also put under police investigation.

In an internal letter, Fan Cheng required all staff to ensure aviation safety and the “normal operation” of the business.

Li Kun, 50, joined Shenzhen Airlines in late 2005 following an ownership change that resulted in Shenzhen Airlines becoming the largest private carrier in the country.

He began his aviation career in 1978 with the air force and spent 27 years with China Southern, in Guangzhou, Beijing and Bangkok in Thailand, before becoming president of Shenzhen Airlines.

Much of the airline’s development has taken place only recently, under Li’s watch. By January 2010, the company, which was established in 1992, had a fleet of 136 passenger and freight aircraft and total assets of 20 billion yuan (US$2.9 billion).

The fall of Li and nomination of Fan fueled speculation that Air China, the country’s flagship carrier, would take over the Shenzhen-based company.

Air China holds a 25-percent stake in Shenzhen Airlines while Li Zeyuan owns around 65 percent through a private company.