Air China has received approval from the Civil Aviation Administration of China (CAAC) to launch a subsidiary in Inner Mongolia. The new airline has been capitalised with CNY1 billion ($159 million), with China Airlines holding an 80% stake leaving the local government of Inner Mongolia with the remaining 20%. The new venture, which is expected to be based at Hohhot Baita, will operate either a Boeing 737-300 or 737-700 on domestic routes.

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