Shenzhen Airlines plans to launch Kunming Airlines in January in the capital of Yunnan Province.

Preparations for Kunming Airlines' launch have been underway since 2004 and the carrier gained CAAC approval in 2005. But for various reasons, the preparations were suspended for some time before being revived earlier this year when Shenzhen Airlines came forward to say it would be the controlling stakeholder. It also will provide aircraft and MRO support.

Kunming Airlines Chairman Wang Qingmin noted that the carrier will launch with three aircraft, with plans to grow the fleet to 10 in 2009, 30-40 in 2010, 80-100 by 2015 and 150-200 by 2022. It eventually will open additional operating bases in Xi'an, Guangzhou, Tianjin and Hangzhou.

Located in southwestern China, Yunnan is home to numerous resorts and is a popular tourist destination. Kunming Airlines will not be without competition; Hainan Airlines signed a cooperative agreement with the Yunnan government in June to launch Yunnan Airlines, which will be comprised mainly of the assets of Lucky Air.