China okays first private airline

The state monopolises air travel but that may change

China is to launch its first private airline - named Okay Airways - by the end of the year, according to state media reports.

Okay will concentrate on domestic air cargo and charter flights within China, the Xinhua news agency said.

Demand for air travel in China is expanding fast as the middle classes take more business trips and holidays.

Two other Chinese airlines - United Eagle Airlines and Air Spring - also are applying for licences.

Tianjian-based Okay - also known as Aokai Airlines - intends to fly a fleet of six Boeing 747 aircraft.

The Civil Aviation Administration of China gave the green light for the setting up of private airlines in May.