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China's Henan airlines to run over 100 domestic, intl routes

2014-09-22 10:55 CNTV Web Editor: Li Yan
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China's newest airline opened for business on Friday. Henan Airlines will operate more than 100 routes to 32 cities at home and abroad. It's the first regional airline to open in Henan and gives an added boost to economic development in the province, and the whole of central China.

High hopes for Henan Airlines. The people running the company want to turn Henan into China's central aviation hub.

"With the establishment of Henan Airlines, we're going to increase carrying capacity, add more flights, and open up some long distance routes to Europe and the US, via Zhengzhou," Xu Jiebo, chairman of Henan Airlines, said.

60 percent of the company's shares are owned by China Southern Airlines. The other 40 percent are held by a state-owned investment company in Zhengzhou.

Chinese authorities hope more low-budget airlines will join the market, forcing ticket prices lower.

"If more local authorities invest in regional airlines, there will be more potential for local airline companies to expand their business," Liu Bin with Nat'l Dev't And Reform Commission said.

7 new regional airline companies have been approved already this year in China, including Inner Mongolia Airlines and Urumqi Airlines.

Experts say there's a strong trend for the expansion to continue.

"Large airlines care more about the big established routes, which produce big profits. Feeder airports are vital for regional economies," Liu said.

Air travel is a lucrative business. The International Civil Aviation Organization says that every million passengers passing through an airport generate around $130 million in revenue for the local area, and over 4,500 local job opportunities.

Henan provincial Authorities say there'll be more investment in the company, and in Zhengzhou as a major aviation hub.

It's all looking good for travelers in Henan.

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