China's largest private airline carrier - Hainan Airlines - has for years been denied direct flights on some of the country's biggest international routes. But Hainan is now taking on the state airlines in new ways... launching the world's first flight between Beijing and San Jose, California on Monday...along with Shanghai to Boston, later this month. 

In the first quarter of 2015, China's airlines flew more than 100 million passengers... Up 13 percent from the end of last year.

But while it's good times for airlines, there isn't much choice for travelers.

Among domestic carriers, state airlines control China's main direct flights. Beijing to Washington, for example. But competition from non-state carriers is taking off.

With more Chinese travelling within and outside of China than ever before, private carriers are now expanding routes in this market - and testing the dominance of China's state-owned airlines.

Private carriers like Hainan Airlines - backed by George Sorros - are taking routes less travelled.

In 2012, Hainan Airlines' parent company, HNA Group, acquired a 48 percent stake in French airline, Aigle Azur flying Hangzhou to Paris, when Beijing was blocked. In June, it bought a six percent stake in South Africa's Comair. 

Now, it's launching the first-ever direct flight from Beijing to San Jose, the heart of Silicon Valley. But Vice President Hou Wei says the journey is just as important.

Hainan Airlines' passengers say the service sets them apart.

With net profits up 427 percent in the first quarter over last year, Hainan's alternative routes and personal touch seem to be working. 

As private carriers in China fly higher, state-owned airlines may need to do more to win new business.