A Hong Kong helicopter operator is planning to lease four short-range aircraft as part of a plan to become the territory's fourth commercial passenger airline, the firm's chief executive said on Friday.

Helicopters Hong Kong said it plans to launch an airline named Hong Kong Express Airways and will operate scheduled flights to cities in southern China.

"We're finalizing details," Andrew Tse, the firm's chief executive said. "We're planning commuter flights to cater to business travellers," he added.

Tse said that the company plans to lease four regional jets for the first year of operation and is considering the 50 seat CRJ200 made by Canadian plane maker Bombardier or a 70 seat Brazilian Embraer 170.

But Tse said the new venture hinges on a new air services agreement between Hong Kong and China, which would allow Hong Kong airlines to fly to more destinations in the world's fastest growing aviation market.

Tse said talks between the two governments have been delayed but industry insiders have said an agreement could be reached this summer.

"This is really a critical point for us," said Tse.

Hong Kong's main carrier Cathay Pacific Airways is also seeking to fly to more destinations in mainland China, a market dominated by the territory's smaller carrier Dragonair.

CR Airways became Hong Kong's third passenger airline in 2003. It offers charter flights but has said it plans to launch scheduled flights.

(Reuters)