Air China to partner with Beijing municipal government on business jet venture

Air China. Photo: Courtesy, Airbus.

Air China plans to launch a new Beijing-based business jet company in conjunction with the Beijing municipal government to compete with Hainan Airlines’ subsidiary Capital Airlines, according to an industry insider.

CA is expected to sign a framework agreement soon with the municipal government and plans to hold a 51% stake in the new entity. The Beijing-based carrier already has a business jet subsidiary which launched in 2003 that operates a fleet of four aircraft including two G450s, one A318 and one Falcon 7X. Those assets will be taken over by the new company, which plans to introduce more aircraft next year.

CA is not the only Chinese carrier to join hands with the Beijing city government to explore the business aviation market. In May, Hainan launched Capital from the assets of its subsidiary business jet unit Deer Jet Co. HNA holds a 70% stake in Capital while BTG holds the remaining 30% (ATW Daily News, April 12). The airline currently operates 25 Airbus aircraft and 24 business jets on more than 120 routes, giving it a 90% share of China's fast-growing commercial business aviation market.

The number of business jets operated in China totals fewer than 100 but experts believe the figure could rise to as high as 1,000 over the next decade.