Air China’s (CA) new subsidiary Dalian Airlines is expected to launch Dec. 26 on the Dalian-Shenzhen route. It received an operating certificate last week from CAAC.

CA holds an 80% stake and the Dalian Baishui Zhengtong company, representing the Dalian municipal government, holds the remaining 20% stake in the carrier (ATW Daily News, Aug. 9).

The subsidiary will initially operate two Boeing 737-800s and plans to expand its fleet to five aircraft next year and to 20 by 2015.

The carrier plans to launch services from Dalian to Beijing and Taiyuan-Sanya. It is seeking approval to operate routes to Japan and South Korea.

Dalian is expected to face fierce competition from China Southern Airlines, which has a 40% share of the Dalian market.