Asia Jet, which has the largest business aircraft charter fleet in Hong Kong, will launch a similar venture with Shanghai's China Eastern Airlines in the next two months.
The operation will start small, with a single Gulfstream G200, a 10-seat aircraft to be delivered next month. But it will be the first time a foreign business jet operator has launched a co-operative partnership with a major mainland airline, although several preliminary agreements have been signed and are waiting implementation.
The joint venture comes amid growing liberalisation of business jet operations in Asia coupled with an expected rise in executive jet use and ownership in China.
The pact 'really opens up domestic China for us', said Mike Walsh, Asia Jet's chief executive.
But, he said there were still issues over the high cost of support services, such as baggage handling, which he estimated were 30 to 40 per cent higher than at airports in Europe.
Walsh said that under mainland rules, 'China Eastern Airlines has its logo on the tail' of the jet which would be leased to the carrier, while Asia Jet provides onboard service.
A second aircraft, a six-seat Gulfstream G150, will be added later, possibly followed by a G250.