Air China launches its Dalian subsidiary

Air China recently launched its Dalian subsidiary ‘Dalian Airlines’.

The airline acquired 80 percent stake in Dalian Airlines by investing US$125.13 million. The remaining 20 percent stake will be owned by the Dalian government.

Air China’s move has fuelled intense competition among various domestic airlines to enter into tie up with local governments in order to launch similar airlines.

Initially, Dalian Airlines will utilize three Boeing 737-800 aircrafts for its flight services. However, the fleet size from the current size is expected to reach five in H1 2012.

Dalian Airlines will serve provincial capitals and other coastal cities in China from the port city of Dalian in Liaoning Province. The airline will also offer flights to South Korea and Japan.