China's first and largest budget carrier Spring Airlines plans to raise up to 2.3 billion yuan in private placement, in a bid to supplement cash flow and pay off bank loans.

The Shanghai-based carrier said in a statement that the money raised through the non-public stock sale will be used to supplement operating capitla and repay debts, thus further optimizing its debt structure and meeting its financial needs to enhance its short-term debt paying ability.

The issue of the corporate bonds surely will benefit the company business by making overall arrangements on medium-to-long-term funds and steady implementing of its strategies.

Spring Airlines announced in July 2015 to raise up to 4.5 billion yuan by issuing not more than 76.79 million shares, for the purchase of 21 Airbus A320 aircraft and its "internet airline" project.

As Chinese economy and household consumption is growing continuously, air travel is becoming more popular and common. Meanwhile, the Civil Aviation Administration of China (CAAC) has released several favorable policies to encourage the development of low cost carriers (LCC). As a result, the Shanghai-based budget carrier is optimistic about its future and plans to enlarge its fleet size to become one of the most competitive international LCC airlines, providing passengers with safer, cheaper, more punctual, more convenient and more pleasant air travel experience.