HNA Group Southwest Headquarters has signed an agreement with Chongqing Yufu Assets Management Company to jointly set up Chongqing West Air Holdings Company with an increase of its cash investment in West Air.
According to Chongqing West Air Holdings Co., West Air will launch more routes to Lijiang, Xishuangbanna, Dali, and Tengchong. By the end of 2012 it will launch routes from Chongqing to Hong Kong, Macau, Taiwan, Southeast Asia, Japan and South Korea; by 2015 it will have international routes to Europe and America. By then there will be more than 100 routes operated by West Air.
Based in Chongqing, West Air was established in 2006 by HNA Group. Chongqing Yufu Assets Management Company is under the direct supervision of Chongqing State-owned Assets Supervision and Administration Commission. This cooperation is another attempt for HNA to tie up with local government in expanding its aviation business.
West Air is not the only airline based in Chongqing with government investment. In the beginning of May, China Southern has signed an agreement with Chongqing government on the construction of Chongqing Airlines hub. Chongqing Airlines is a joint venture set up by China Southern and Chongqing government in 2006.
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