The Chinese government has approved the country's first private airline company, established by civil aviation-related companies.
The company -- 'Western Airlines' -- will have a registered capital of $12.09 million, Beijing News reported citing a latest notice of Civil Aviation Administration of China.
The Sichuan Haite Investment Company and Hui Qianli, with an investment of around $3.63 million, are the company's largest shareholders.
As a major business invitation project of Mianyang Airport in south-west China's Sichuan Province, the company will sign up flight personnel from other airlines before having its own crew trained.
It will also seek both domestic and overseas listing, Xinhua news agency reported.
In January, China issued a regulation forbidding enterprises and institutions engaged in the civil aviation business to set up air transportation companies either independently or jointly to avoid unfair competition.
A CAAC official, who declined to be identified, said the investors of this new company were not regarded as "immediately related to the industry" and thus got the permission.