JUNYAO Group, a leading private company that owns an airlines and a dairy operation, said it has restructured operations to target service businesses and aims to almost double sales by 2010.

The additional sales will come mainly from the Shanghai-based company's aviation business, brand licensing programs for international sports events and food marketing, Junyao Group Chairman Wang Junjin said yesterday.

The company plans to outsource the production of Junyao Milk, one of its most-famous products, and expand its food business through research and development, brand and channel building and marketing, he said.

"Junyao Group will focus on the service sector in its future development and tap the high-end of the value chain, including design, brand building and marketing," Wang said. "We expect to achieve sales of more than 10 billion yuan (US$1.3 billion) in 2010, up from the six billion yuan last year."

Junyao was known as a dairy maker and real estate developer years ago but in the past three years has set up its own airlines and a cultural development subsidiary for brand licensing programs in international sports such as Formula One, the Olympics and the Women's World Cup for soccer.

"Aviation and marketing will be the group's main business in the future under our goal to be an international brand with sustainable development," Wang said.

The company's Juneyao Airlines, which launched its maiden flight in September, broke even in the first quarter of this year and will post a profit in 2007, Wang said.

The carrier plans to be operating a fleet of 40 planes in three years, with bases in Shanghai and Wenzhou.

Meanwhile, its cultural division is expected to expand rapidly in the coming years. Junyao has signed to be the China licenser for Formula One, the Olympics and Women's World Cup products, Wang said.