China United Airlines was established in 1986 as an arm of the civil transport division of the People's Liberation Army Air Force.

In November 2002, all scheduled services were ceased, followed by a full suspension of flight operations in 2003 due to a Chinese governmental regulation prohibiting the Army from being directly involved in commercial activities.

In 2000, China United Airlines spent US$120 million to buy a Boeing 767-300ER, which was previously ordered by Delta Air Lines, as Jiang Zemin's private jet.

Several days before its first flight, covert listening devices were found installed in the toilet, corridor, and even in Jiang's headboard.

It operate for over a decade in Air China's fleet and was sold to the Sunday Airlines of Kazakhstan in 2014 after its retirement.