Competition for passengers in western China intensified dramatically in recent days as China Southern Airlines launched its new Chongqing Airlines, while HNA Group subsidiary Lucky Air began operating its Chongqing-based West China Airlines.

Chongqing Airlines has noted that it mainly will target high-end customers and business travelers. It has one A320 and expects its inaugural flight to take place on July 8 to Beijing, after which it will start serving Guangzhou, Shenzhen and Shanghai. It expects to be flying three airplanes by year end and operating 10 by 2010, when it plans to introduce the A330 on international routes. But its initial priority is to develop a domestic network covering second-tier cities and tourist destinations.

Lucky Air will forge a different path with its new carrier, which Lucky CEO and West China President Ma Guohua said will operate as a point-to-point LCC offering tourism packages in conjunction with Lucky. Shandong Airlines, based in Jinan, also has announced its intention to start a Chongqing-based airline soon.