Regional air travel market hot for domestic airlines

China Eastern Airlines confirmed yesterday it has signed a letter of intent with AVIC I in Shanghai to establish a regional airline joint venture in the western China. China Eastern will hold 40 percent of the new airline, and AVIC I the rest. In the early stage of operation, the new carrier will mainly operate the Modem Ark 60 (MA60) airplanes, a turbo propeller regional aircraft manufactured by Xi'an Aircraft International Corp, an affiliate of AVIC I's Xi'an Aircraft Industry Group. It will then add the ARJ-21 regional planes, to be launched this year, to its fleet.