Leading Chinese aircraft maker China Aviation Industry Corporation I (AVIC I) formed a regional airline on March 28, 2008, with China Eastern Airlines Corp. Ltd., one of the three largest air carriers in the country.

The regional airline, China Joy Air Co., Ltd., is a 60-40 joint venture between the aircraft maker and the airline, with total registered capital of CNY 1 billion. The Beijing-registered airline will have its base at the Xi'an Xianyang International Airport in Xianyang of Northwest China's Shaanxi Province.

The new airline will use MA60 regional turbo-prop aircrafts by AVIC I at its first stage and will add ARJ21 Xiangfeng regional jets later. It will have a fleet of 100 aircrafts in eight years.

The establishment of the airline will not only boost the aircraft manufacturing industry of the country but also improve the air transportation capacity of the western and mid regions in the country.