Spring Airlines plans to raise three billion yuan (US$384.1 million) to fund its aircraft purchase and for nationwide expansion, the Shanghai-based low-cost carrier said yesterday.

The airline will use a combination of bank borrowings, seeking private investors and going public to get the funds, it said.

Spring, which now leases four Airbus A320 aircraft, has been approved to buy another 10 A320s as part of the order of 150 aircraft China signed with Airbus SAS in October, said Zhang Lei, a spokesman for Spring.

The carrier is expected to pay four billion yuan for the 10 aircraft, he said.

"Details on the fund raising are still in the pipeline but a number of domestic and international financial institutions have contacted Spring for cooperation," Zhang said.

The listing plan is expected to start around 2009, said Wang Zhenghua, Spring chairman, during an earlier interview.

Spring Airlines, which initiated 199-yuan, 99-yuan and 1-yuan tickets arousing much fanfare in the industry, also said it's expected to turn a profit of more than 20 million yuan this year, Zhang said.

The airline lost eight million yuan last year after its maiden flight in July.

Meanwhile, the carrier has decided to choose either Sanya or Haikou, both in Hainan Province, to serve as its second base after Shanghai as it seeks further expansion.

"The time slot availability at Shanghai Hongqiao International Airport is so limited and has curbed Spring's expansion, so we decided to form a second base next year," Wang said.