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New airline takes off in Yunnan to boost tourism

Updated: 2010-08-14 15:31

By Li Jing (China Daily)

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New airline takes off in Yunnan to boost tourism

China Eastern Airlines holds a ceremony to celebrate the founding of its Yunnan branch. Provided to China Daily 

China Eastern Airlines (CEA), the nation's third largest air carrier, is giving new wings to Yunnan province's lucrative tourism market with the launch of its local subsidiary.

CEA's Yunnan branch is a joint venture between China Eastern Air Holding Corp and the province's State-Owned Assets Supervision and Administration. The carrier invested 2.38 billion yuan ($350 million) to own 65 percent of the new entity, with the provincial government investing the rest. The company's operations are based on a framework agreement with Yunan's government.

CEA is among the largest aviation companies operating in Yunnan and plans to leverage its position to sustain its growth.

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The Yunnan branch's high domestic and international transport capacities make it easier for passengers to reach nearly 70 destinations, both at home and abroad. It offers more than 600 flight routes and flights from all 12 of the province's airports, in addition to several in Southeast Asia and South Asia.

Figures from Wujiaba airport in the provincial capital, Kunming, show that 50 percent of all passengers from July 20 to July 25 took flights offered by CEA and Shanghai Airlines, which merged with CEA early this year.

Yunnan is rich in tourism resources, but its many mountains inhibit the construction of highways and railroads. The joint venture is expected to boost local tourism development in addition to CEA's market share in the province.

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