Qingdao Airlines to be Launched
China’s Qingdao municipal government is in negotiations with Air China (CA) and its subsidiary Shandong Airlines to launch Qingdao Airlines, according to Qingdao municipal transport committee deputy director Zhao Haibin.
According to industry analysts, the Qingdao government is seeking to partner with an established Chinese carrier as new Civil Aviation Administration of China standards for new entrants make it difficult to launch new carriers.
All major Chinese carriers have been forging closer cooperative relationships with local governments. Industry analysts say that subsidiaries enable China’s domestic carriers to receive cash support and enjoy favorable policies from different local governments.
China Southern Airlines last month launched Chongqing Airlines and entered into a joint venture agreement with government-owned Henan Civil Aviation Investment to launch a subsidiary, China Southern Henan Airlines Co.
– ATW Daily News