China's Joy Air Co. Ltd, a regional airline company co-invested in by Aviation Industry Corporation of China (AVIC) and China Eastern Airlines, will go into operation this June.

The regional airline company, based in Xi'an, capital city of northwestern Shaanxi province, will gradually open flight routes to Chinese cities within 600 kilometers from Xi'an.

The airline will run ten aircraft, Xinzhou-60 ("MA-60") and Xinzhou-600 ("MA-600") manufactured by AVIC, during its early operational phase and aims to expand the fleet-size to 100 aircraft and add the domestically made ARJ21 aircraft as a major transporter.

Joy Air was set up under the approval of the Civil Aviation Administration of China (CAAC) as a regional airline operator in March 2008.

Originally, AVIC and China Eastern agreed to contribute 60 percent and 40 percent, respectively, to Joy Air's one billion yuan registered capital, but the shares changed. China Eastern decided to sell 35 percent of Joy Air to AVIC this January and hold about a five percent stake.

A statement issued by AVIC on January 14 says that China Eastern decided to adjust its development strategy in Joy Air due to a capital shortage. China Eastern may consider repurchasing the stake at a later point in time.

Photograph: A Xinzhou-60 ("MA-60") aircraft in Joy Air livery.