THE HNA Group, China's fourth-largest aviation group, launched a business jet company in Shanghai yesterday as it eyes the growing demand from high-end customers during the World Expo to be held in the city next year.

Shanghai Deer Jet Co, with a registered capital of 300 million yuan (US$43.56 million), is based in the city's Pudong International Airport. Initially it will operate two jets.

The group, parent of Hainan Airlines, said the new firm will target political officials, business leaders and entertainment stars.

"The company aims to enhance China's business jet industry which is a laggard behind those in developed countries," said Chen Feng, chairman of HNA.

By the end of last month, there were not more than 30 business jets in China compared with 18,000 in the United States. China's business jet market expects to see revenue soar 40 percent in 2020 on a yearly basis, according to analysts.

HNA now operates a total of 18 business jets in its Beijing and Shanghai companies to become the biggest operator of the jets in Asia.

With the expected influx of senior government officials and business leaders from around the world to the city to attend the 2010 Shanghai World Expo, the development of the business jet industry takes on higher importance.

China invested 80 million yuan to build its first comprehensive hub for business jets last year in Shanghai which offers a full range of services for privately-owned aircraft. By 2010 when Shanghai hosts the World Expo, the hub will be able to handle 3,000 to 4,000 business jets annually.