Tibet Airlines, the first carrier based in southwest China's Tibet Autonomous Region, will start flight operations in the middle of next year and is recruiting employees now, Tuesday's China Business News reported.

The founding of Tibet Airlines was approved by the Civil Aviation Administration of China (CAAC) this March with a registered capital of 280 million yuan (US$41.1 million).

State-owned Tibet Investment Co. holds 51 percent of the carrier while two Lhasa-based investment companies Sanli and Ruiyi own 39 percent and 10 percent respectively. A source, who did not give his name, told China Business News both Sanli and Ruiyi are privately-owned companies and Tibet Airlines would like to cooperate with other carriers.

Currently, Air China has 55-60 percent share of Tibet's aviation market. Sichuan Airlines owns about 30 percent while other carriers including China Southern and China Eastern have 10 to 15 percent.

Deep discount airline tickets are rarely seen on Tibet flight routes as the region is becoming a popular tourist destination.

The report said Tibet Airlines is choosing between Boeing 737-700 and Airbus A319 to build its fleet due to the high altitude of Tibet's airports. The airline will introduce three aircraft at first.

The carrier will operate flights within Tibet Autonomous Region and link the region's capital Lhasa with other major cities around the country.

The newspaper also said the airline hopes to serve international destinations in the future.

The booming tourism will no doubt create a good opportunity for the region to develop its aviation industry.

"It may cost eight hours for tourists to drive from Lhasa to Nyingchi prefecture, which is just 300 kilometers away from the regional capital. The inconvenient road traffic makes Tibet receive fewer tourists than it could be," the above-mentioned source told the newspaper.

"Compared to building highways and high speed railways, developing the aviation market in Tibet will be a better choice economically," he added.

(chinadaily.com.cn June 9, 2010)