BEIJING (Reuters) - Kunpeng Airlines, a venture between China's Shenzhen Airlines Ltd and U.S.-based Mesa Air Group Inc (MESA.O: Quote, Profile, Research) has begun operating in China's northwest Shaanxi Province, Xinhua said late on Saturday.
The new airline is the first such venture by a U.S. carrier in the growing Chinese market, and hopes to expand rapidly before next year's Beijing Olympic Games.
The airline gives Mesa a foothold in one of the world's fastest growing economies at a time when expansion for regional carriers in the United States is slowing.
Kunpeng Airlines, in which the Chinese partner has a controlling stake, has three 50-seat Bombardier (BBDb.TO: Quote, Profile, Research) CRJ-200 jets, said Xinhua. The airline plans to expand its fleet to six aircraft by the year-end and to 20 before next August's Olympics.
Mesa flies regional routes for several U.S. carriers, including US Airways Group Inc (LCC.N: Quote, Profile, Research) and Delta Air Lines Inc (DALRQ.PK: Quote, Profile, Research). It also runs an inter-island service in Hawaii.
Shenzhen Airlines, with a fleet of 45 aircraft, flies 100 routes in China and Southeast Asia.
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