Chinese startup Colorful Guizhou Airlines plans to launch its inaugural flight at the end of this year, according to chairman Zhai Yan.
The Guiyang-based airline has a registered capital of CNY1 billion ($163 million) in which Guizhou Industrial Investment Group invested CNY950 million to hold a 95% stake while Weining County Construction Investment Group put in CNY50 million to hold the remaining 5% stake.
Zhai noted the new venture will be a low-cost carrier that will mainly operate on regional routes in Guizhou province and other domestic routes.
At this year’s Paris Air Show, the startup signed for seven Embraer E-190s plus 10 options, valued at $834 million at list prices if options are exercised. The airline is slated to receive its first E-Jet ahead of its launch this year. It is planning to grow rapidly, hitting 30 aircraft by 2020 and between 120 and 140 in the future.
Colorful Guizhou Airlines is expected to face stiff competition from China Southern’s Guizhou branch that currently dominates the Guizhou market by taking up nearly 30% shares.