Air China launches new subsidiary in Inner Mongolia

Air China flights are all set to expand in the North China market. The airline recently announced the launch of its new subsidiary in Inner Mongolia. The operations are scheduled to start at the end of the year.

The airline disclosed that Air China would be holding an 80 percent stake whereas the local government of Inner Mongolia would be holding a 20 percent stake. The new subsidiary has been named Air China Inner Mongolia Limited. The new venture has a registered capital of $159 million (1 billion Chinese Yuan).

The new carrier would be based at Hohhot and will initially operate with a fleet of four aircrafts – two Boeing 737-300 aircrafts and two Boeing 737-700 aircrafts. The new airline Air China Inner Mongolia will operate on domestic routes, including Shanghai, Beijing, Hangzhou, Chengdu, Guangzhou and other Chinese cities. Later on, more regional routes inside the Inner Mongolia region would also be opened.

The new carrier would be competing with Hainan Airlines subsidiary Tianjin Airlines, which is also expanding its network in the Inner Mongolia region.