Juneyao Airlines, one of the few privately owned mainland carriers, yesterday said it is preparing to raise $150 million by a private placement of 20 to 25 percent of the company's shares to overseas investors as an important step toward an overseas listing before 2009.

It is not the only private airline aiming to raise funds. Both Shenzhen Airlines and Spring Airlines have said they plan to raise new capital to finance growth by selling stocks.

Juneyao Airlines, based in Shanghai, plans to use the proceeds of the share placement to finance new flight routes in China this year and expand its fleet, according to Huang Hui, chief executive of Juneyao Group, the parent company of Juneyao Airlines Co Ltd.

The company, which operates four planes, plans to buy up to 30 new ones by 2010. The company forecast a profit of about 25 million yuan for 2007, its first full year in operation. It began operation last September. Juneyao operates 15 routes with four Airbus 320s.

Unlike some other private airlines, which compete with the established State-owned airlines on price, Juneyao positioned itself from the beginning as a premium airline catering mainly to business travelers.

Juneyao was established in the early 1990s as a dairy producer. It has diversified into retail and aviation.

Shenzhen Airlines (stock code: 000089), the country's largest private airline, also plans to list in the coming years. "Our company is seeking listing, as declared by the chairman two years ago, but there is still no timetable," said Ma Ping, spokeswoman for Shenzhen Airlines, yesterday.

"The anticipation of sound corporate earnings and the booming stock market has begun to lure many private airlines to raise funds by listing," said Ma Ying, an analyst at Haitong Securities.

"Besides, it is difficult for private airlines to get bank loans, unlike State-owned companies. Thus they have begun to resort to stock listings to raise money," she added.

Meanwhile, Spring Airline, a privately owned budget carrier, told China Daily that it also has plans for an initial public offering in Shanghai or Hong Kong by 2009.

Zhang Lei, the company's spokesman, said the airline has received approval from the General Administration of Civil Aviation of China to purchase six planes from Airbus.