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HUAXIA Airlines is the latest privately owned airline to be issued an operating license by the Civil Aviation Administration of China (CAAC). The low cost airline applied for a license to operate domestic flights over two years ago, and will begin flights in coming months, according to a representative from the airline.

Half owned by international investors, Huaxia, like other budget airlines already in China, will keep operating costs low by selling most tickets from its website. Moreover, it will not offer meals on flights.

Headquartered out of Gansu Province in China's northwest, Huaxia will initially target regional passengers flying from the provincial capital of Lanzhou to other neighbouring provinces including Xi'an (capital of Shaanxi province to the southeast of Lanzhou).

Approving Huaxia's license is part of CAACs overall goal to pursue a liberal policy of opening the aviation market in China. Civil aviation minister Yang Yangyuan said: "We will continue to look at ways to reform and improve the local airline industry to make air travel available to more Chinese."

In 2005, CAAC issued operating certificates for 14 private domestic airlines and excluding Huaxia, five have already been issued in 2006 with another four expected before the year-end.