The airline was established in July 2004 as a start-up airline known as Shilin Airlines. Hainan Airlines had invested 2.93 million yuan in the company, while its affiliate Shanxi Airlines invested 47.07 million yuan. The airlines provided the new company with three Dornier aircraft, a Boeing aircraft, and a Dash-8. The Yunnan Shilin Tourism Aviation Co. also invested a further 1 million yuan.[5]
On 23 December 2005, Shilin Airlines was renamed Lucky Air. It started operations with a flight between Kunming and Dali within Yunnan on 26 February 2006.[citation needed]
The airline is owned by Hainan Airlines, Shanxi Airlines and Yunnan Shilin Tourism Aviation. It has 263 employees (at March 2007).[4]
The airline is one of the four founding members of the U-FLY Alliance, which is the world's first alliance of low-cost carriers. It formed in January 2016 by HK Express, Lucky Air, Urumqi Air, and West Air.
Lucky intended to deploy 787-9s to Europe and North America by the end of 2016.[6]
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