China Southern Airlines (CZ, Guangzhou) has announced it will establish a new carrier to cover its operations at Beijing's upcoming new international airport, located about 100 km southwest of Beijing in the Xiong'an New Area.

A Hong Kong stock exchange disclosure said China Southern Airlines Xiongan Airlines Company Limited ("Xiongan Airlines") would be a wholly-owned subsidiary of the carrier.

China Southern will inject a total of CNY10 billion yuan (USD1.51 billion) worth of cash and assets, split 25/75, into the start-up depending on its progress.

"The establishment of Xiongan Airlines (CXN, Beijing Daxing International) in Xiongan New Area by the Company is beneficial for the better construction and operation of the Beijing Hub, and will further push forward the implementation of the strategy of a ‘Dual Hub of Guangzhou and Beijing’," it said.

Xiongan Airlines has yet to secure Chinese government approval and, given the lengthy backlog of applicants, is not expected to launch this year.

For its part, the first phase of Beijing's new international airport is expected to open in October 2019.