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Dalian Air unveiled today, 80% owned by Air China

AIR China today inaugurated its 1-billion-yuan (US$155 million) Dalian subsidiary, which has fueled competition among domestic airlines to tie in with local governments to tap regional markets.

Air China, the country's flagship international carrier, invested 800 million yuan for an 80 percent stake in Dalian Airlines and the Dalian government held the remainder stake through its state-owned asset management arm, it said in an emailed statement today.

Dalian Air will operate three Boeing737-800 jets in the initial stage and the fleet size will reach five jets in the first half of 2012. The new carrier will boost Air China's presence in northeast China by operating flights mainly from Dalian, a port city in Liaoning Province, to other coastal cities and provincial capitals in China as well as Japan and South Korea.

Competitor China Southern Airlines already has a branch in Dalian and has allocated 19 planes to secure a market share of 40 percent in the city.

Initially the Dalian government was in discussions with HNA Group, parent of Hainan Airlines, about setting up an airline in the city, but it chose Air China as its partner in the end.



 

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