Hainan-base HNA Group to launch Guilin Airlines in May
Hainan Airlines parent HNA Group plans to launch Guilin Airlines in conjunction with the Guilin municipal government in May, pending approval by the Civil Aviation Administration of China (CAAC). The new venture is expected to operate three aircraft initially with plans to expand its fleet to 30 aircraft in three years.
The CAAC, which is expected to approve the launch, has loosened its grip on allowing new domestic startups. The regulator has recently approved the launch of Jiuyuan Airlines and Fuzhou Airlines.
China’s local governments are competing to develop airlines’ business by increasing capacities or setting up new airlines to stimulate local economic growth.
The Guilin local government also plans to establish an air travel group with HNA Group to partner in the fields of air travel, including finance and network.
As Chinese domestic carriers partner with local governments, they seek cash support and favorable policies in terms of tax, landing and ground-handling fees, and land resources.
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