(Yicai Global) Feb. 26 -- China Eastern Airlines launched OTT Airlines today, a new subsidiary that will mostly operate jets developed by China.

OTT, which means 'One, Two, Three,' will take delivery of 20 large C919s made by Commercial Aircraft Corporation of China, Shanghai-based China Eastern said via Weibo, making it one of the aircraft's first customers worldwide. The carrier will use the planes on trunk routes, aiming for large-scale operation of domestic aircraft by 2030.

The new airline will also receive three ARJ21 aircraft this year also made by Shanghai-based Comac, with the first expected to be operational in September. The first group of 35 ARJ21-700 jets purchased by the carrier is scheduled for delivery between 2020 and 2024.

As a member of the National Committee of the Chinese People's Political Consultative Conference, China Eastern President Liu Shaoyong proposed last March that the government introduce more favorable policies to encourage domestic airlines to buy Chinese-made planes.

For example, priority should be given to guarantee resources such as operating rights, flight schedules, air routes, aviation information and fuel supply for the operation of domestic aircraft. In addition, appropriate tax relief and special subsidies should be offered for operating domestic aircraft, especially the operation of flights for routes to economically undeveloped areas, as well as related facilities.

Formed out of China Eastern's corporate aircraft business, OTT has added public air transport to its scope besides general charter flights. OTT, which will mostly serve the Yangtze River Delta and surrounding coastal areas, aims to form a convenient and efficient service network by integrating trunk line and branch line offerings.

China Eastern said the new carrier's name derives from the philosophical thinking of traditional Chinese culture on the laws of nature. Laozi said tao begets one, one begets two, two begets three and three begets all things. The name shows that it has full confidence in China's aircraft manufacturing industry.

With between 78 to 90 seats, regional jet ARJ21 began commercial flights after being delivered to airlines in November 2015. The C919, with between 158 to 168 seats, is still undergoing tests as it has not yet secured an airworthiness certificate.

Editors: Tang Shihua, Liao Shumin, Peter Thomas