New airline starts operating from Hangzhou

A new airline has started operating from Hangzhou, eastern China.

Zhejiang Loong Airlines, which is based at Hangzhou’s Xiaoshan International Airport, welcomed its first Airbus A320 passenger aircraft late last month, and launched its first ever passenger flights on 26 December 2013.

Formerly a cargo airline, Zhejiang Loong received permission to expand its business scope to also include passenger services last year. The carrier will initially offer domestic services to destinations including Chengdu, Xi’an, Xiamen, Shenzhen, Guangzhou, Wuhan, Kunming, Chongqing, Changsha and Changchun. It also plans to launch international routes in three to five years.

To drive its expansion efforts, the Hangzhou-based airline has also signed its first purchase agreement for 20 A320-series aircraft – 11 standard A320s and nine new A320neos. The firm agreement follows a Memorandum of Understanding (MoU) initially signed at the Beijing Airshow in September 2013. The deal is worth US$1.84 billion at list prices.

Zhejiang Loong, which launched its operations using two leased A320s, expects to receive its first owned A320s in the first half of 2014.

“Today is a special day for Zhejiang Loong Airlines as we start passenger operation and order 20 Airbus A320[s],” said the airline’s chairman, Liu Qihong.

“We are making efforts to play a more important role in building the four-hour transportation circle around Hangzhou, which is advocated by the Zhejiang government. The Airbus A320… is ideal for us to achieve our goals with advantages in operational reliability, economics, cabin space and its commonality between different types of Airbus aircraft.”

Zhejiang Loong is one of several new passenger airlines to be created in China since government regulations on new carriers were relaxed earlier this year. Other new entries into the market in the coming months and years will include Donghai Airlines, Sutong Airlines, Ruili Airlines, Urumqi Airlines and Qingdao Airlines.