Fuzhou will set up a local airline, said Yang Yimin, mayor of Fuzhou, capital of Fujian province, already approved by the Civil Aviation Administration of China (CACC).

Yang was interviewed during the 2nd Session of the 12th National People's Congress (NPC), which opened on March 5 in Beijing, and he added that all preparation work is underway.

"Fuzhou Airlines will be operated in a market-oriented way, with Fuzhou's enterprises holding shares, and this is supported by the city's municipal government," said Yang, who also said Fuzhou people are expecting a local airline company because it will play a significant role in improving the city's image and influence, despite many other airline companies having already entered the Fuzhou market.

The new airline company will increase competition and can help improve services and bring benefits for local people, Yang said.

The company will be co-established by the Fuzhou municipal government and Hainan Airlines Group, with a total registered capital of two billion yuan ($326 million). Preparation work is scheduled from Feb 12, 2014, to Feb 11, 2016.

By Lu Ting from China Daily Fujian Bureau, and Zhao Qian

Edited by Nelly Min