Xiamen Airport in southeastern China is building a dedicated budget terminal while seeking more business from low-cost carriers. The airport, which is already unusually popular with such carriers, has begun to convert facilities at its cargo terminal to a budget passenger terminal, with completion due this year. The operating company, Xiamen International Airport Co., says it is encouraging budget airlines from Indonesia, Philippines and Australia to fly there. The Indonesian and Australian targets are presumably Lion Air and the Qantas group’s Jetstar.

China will promote regional aviation with subsidies for small and medium airports and for airlines running short flights, helping to balance its airline sector away from big trunk routes and eastern hubs while boosting sales of domestically built aircraft.

Mitsubishi Aircraft Corp., the builder of Japan’s new regional jet, will raise JPY67 billion (US$640 million) in capital from parent Mitsubishi Heavy Industries, Toyota Motor, Sumitomo and Mitsui & Co. Mitsubishi Heavy’s share in the business will fall to 67.5% from the current 100%. The aircraft company and its Mitsubishi Regional Jet were launched on April 1.