Despite the continuing decline indomestic demand, Hainan Airlines iscontinuing to expand and now is preparingto launch a new airline expected to bebased in Hangzhou.
Hainan parent HNA Group signeda cooperation agreement recently withQian Tang Aviation Group creating ajoint venture called Qian Tang Air, whichis expected to capitalise on the economicgrowth occurring in Zhejiang Province. Itwill operate three leased A320s initiallywith plans to be operating a combined 30A320s and A330s within three years. QianTang ordered 10 A320s last year.