BEIJING—Tiny Chinese carrier Hongtu Airlines, just bought by a big travel agency, is converting its operation from the low-cost model to full service. The decision, difficult to reconcile with Hongtu’s tourism-oriented business, predates the company’s acquisition by the Tongcheng Group. One of Hongtu’s three aircraft, an Airbus A321, has been refitted with a business-class cabin, the airline said. It began offering a free meal service, ceasing onboard sales, on July ...

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