China's aviation authority has approved the establishment of two new airlines and given guidance to support low-cost airlines.

The establishment of Jiuyuan Airlines and Fuzhou Airlines has been approved by the local authorities, the Civil Aviation Administration of China announced on Thursday.

Hainan Airlines, the fourth-largest carrier in China, will invest 1.2 billion yuan ($198.36 million) into Fuzhou Airlines, which has 2 billion yuan registered capital.

Jiuyuan Airlines, with 600 million yuan registered capital, will have Junyao Airlines, a private-owned carrier based in Shanghai, as its major investor.

Jiuyuan Airlines, based in Guangzhou, Guangdong province, will be a low-cost carrier, Wang Junjin, chairman of Junyao Airlines, said earlier.

The CAAC has made some preferential policies on aircraft purchasing, routes and slots application as well as service standards to encourage low-cost airlines.