Wang Changshun, president of Air China Limited, revealed Wednesday that Air China intends to set up a joint venture with Inner Mongolia Autonomous Region, subject to approval of Civil Aviation Administration of China (CAAC).

Wang made the above statement during an interview with China Business News on the sidelines of the China Civil Aviation Development Forum 2012 held in Beijing on May 23-24. He also said that this new joint venture will be based on the existing Air China's Inner Mongolia Branch, and it will continue to be controlled by Air China Holdings once set up.

It's a known fact that in recent years, both Hainan Airlines and China Eastern Airlines are gradually increasing routes to the Inner Mongolia region. After getting capital support from the Inner Mongolia government, Air China is expected to get more policy support in the local route development.

It is worth noting that establishing joint venture with the local government has become the domestic airline enterprises' development strategy. Previously, Air China worked with the Dalian and Beijing government and set up Dalian Airlines and Beijing Airlines. China Eastern Airlines also gets fund support from the Yunnan and Hubei government. Meanwhile, China Southern Airlines is restructuring its Henan branch and looking for support from the Henan government.