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HNA aviation Group which is one of China's 4th biggest air line group have signed a co-operative arrangement with the Fuzhou government, located in the Fujian province, on Thursday to introduce a new low cost budget Fuzhou Airlines as part of HNA's domestic expansion plan in South China. The arrangement will highlight and focuses on using collaborative efforts to obtain operating approvals from the Civil Aviation Administration of China, investing in the construction of Fuzhou ( 福州 ) Airport and in the freight industry and establishing industrial funds, among other tasks and implementations.

Just after Air China started Dalian Airlines last year 2011, other large air line carriers in China, including China Southern and China Eastern, are all expanding their domestic and regional presence through subsidiary divisions. Analysts say that collaborations between local governments such as Fuzhou and airline companies is mutually beneficial. On the one hand, such as an Fuzhou airline establishment can be a stimulus for a local economy and on the other hand the government's capital injection can ease financial pressures on businesses and put them in a more favorable position to obtain approval from the Civil Aviation Administration of China.

Fuzhou ( 福州 ) is the capital city of in the Fujian Province and is one of the largests towns in the People's Republic of China. Fuzhou airlines would have to compete with Xiamen Air owned by China Southern which has a market share of more than 50% in the regions. There are other airlines that fly to Fuzhou and flights a booking can be obtain by the following carrier such as Air China and Cathay Pacific which currently offer flights to this area.

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