Hainan Airlines said on November 28 that its subsidiary Yunnan Lucky Air Corporation (Lucky Air) is planning to set up a low-cost carrier in Chengdu, capital of southwest China's Sichuan Province.

The new carrier--Shennaio Airlines (literally meaning Sun Bird)--is a 3-billion-yuan joint venture among Lucky Air, Yunnan Xiangpeng Investment Co., Ltd and Chengdu Transport Investment Group Co. Ltd.

The airline will operate both domestic and international services.

The three companies will respectively hold 35 percent, 45 percent and 20 percent stakes in it.

Hainan Airlines said the move is aimed to increase its market presence in Sichuan for greater future profits.

The company will begin operating Chengdu-Los Angeles direct flights in the first quarter of 2017, and Chengdu-New York direct?services in the second quarter of 2017.

It is also planning to open direct flights between Chengdu and London in 2017.