China's large State-owned airlines are forging alliances with local governments. In just two years, 7 new airlines have been established. They include Tianjin Airlines, Beijing Airlines, and the very new Hebei Airlines.

Unlike other airliners, these local companies are founded by the cooperation between local governments and major airlines. The planes and crews are owned and deployed by other air companies. With the support of the governments, local air companies are under less pressure and are able to offer more discounted tickets.