Hainan Airlines parent HNA Group signed a strategic cooperation agreement with AVIC II under which the parties will cooperate on aircraft purchasing and leasing.

At the signing ceremony, HNA Group Chairman Cheng Feng said his company's alliance with AVIC II will further the development of and investment potential in China's rapidly growing air transport industry.

HNA said it will need a significant number of new aircraft as it looks to establish itself in the Chinese regional market, and AVIC II GM Zhang Hongbiao said the consortium of OEMs and affiliated agencies will work to facilitate those acquisitions.

The two companies also will launch a joint regional MRO subsidiary and work together on general aviation operations.

Local industry analysts have said that establishing deeper relationships between airlines and OEMs may be an effective way to exploit the market opportunities that will continue to expand as China improves its ATC, liberalizes air service agreements with foreign countries and moves to manufacture its own "jumbo" aircraft.

Last summer, HNA Group ordered 50 ERJ-145s to be built by Harbin Embraer Aircraft Industry Co., a joint venture between AVIC II and Embraer.