Deer Jet Co Ltd, China's largest business jet aircraft operator and a subsidiary of Hainan Airlines, is seeking to diversify its portfolio, improve efficiency and lower costs amid the industry downturn.

The government's campaign against official extravagance and the wasting of public money has hit the personal aviation industry, as demand from officials has fallen. Several major carriers in China have now dropped their first-class service.

Sean Xu, chairman of Deer Jet Co Ltd, admitted the campaign against extravagance was having an impact on the company's business, but said he was confident this was short-term and demand would pick up.