Air China subsidiary Dalian Airlines covers a key strategic position in northeast China

Air China start-up Dalian Airlines commenced operations on 31-Dec-2011, marking another milestone in the flag carrier's expansion of its domestic footprint. A bastion of China Southern (following its takeover of China Northern in 2003), Dalian Airport is a key northern gateway, with strong trade links to neighbouring Japan and Korea - which feature in Dalian Airlines' future expansion plans. The focus on the north-eastern region also reflects a shift in domestic network development patterns in China in light of increasing competition from the high-speed rail (HSR) network. Shandong Airlines, Hainan Airlines and China Southern Airlines have separately stated they will increase services to/from China's north-east and north-west regions.

With the establishment of Dalian Airlines, Air China, is expanding its domestic and regional presence through a subsidiary operation. The complex ownership structure of subsidiaries is common among the 'Big Three' carriers in China, while HNA Group also has a convoluted subsidiary and ownership structure, in addition to a branch carrier network.