Contributor - Asia

Jennifer Meszaros

Shanghai-based Juneyao Airlines plans to take advantage of more aggressive Chinese aviation reforms with the formation of a new low-cost carrier called Jiuyuan Airlines. Plans call for the new joint venture between Juneyao and three private investors to start operations in August. Privately held Juneyao holds a 69-percent stake in the new carrier, whose registered capital base totals $96 million. Based in Guangzhou, Jiuyuan translates in English to “Nine Yuan,” reflecting starting fares of $1.46.


Under the terms of the joint-venture agreement, Jiuyuan will first operate three Airbus A320-family jets, then expand the fleet over the next five years to 26 aircraft. Although its plans call for its route network to extend into South Asia, Southeast Asia and Northeast Asia, Jiuyuan hasn’t yet announced its initial destinations. The launch of the new carrier would make Juneyao the first privately owned Chinese carrier outside of Hong Kong's HNA Group to operate a subsidiary.


Recent economic reform efforts in China spell good news for the aviation sector, long hindered by the country’s one airline-one route policy and a preference for state-controlled carriers. China’s move toward a freer market reflects a bid to expand and meet macro-economic conditions, allowing private and low cost carriers (LCCs) a chance to end the monopoly of public airlines and allow the country to expand its international network.


Neither prohibited nor outright allowed, LCCs currently operate on the fringes of China’s aviation sector. However, the Civil Aviation Administration of China (CAAC) has notably pushed toward expansion as it increasingly recognizes LCCs as a source of greater economic growth. The North Asian market remains relatively underserved by LCCs. However, in an undeniable sign of reform, the CAAC lately has approved the establishment of more private carriers than public ones.


Today, LCCs such as Jiuyuan appear better placed to meet China’s growing need for regional and short-haul international flights. However, the CAAC needs to tread lightly in order not to disrupt the status quo. While LCCs will no longer face the same limitations they have had to endure in the past, they can still expect strict regulation. Although the CAAC promises to welcome start-ups and make airport slots available, it will most likely restrict LCCs to operating between secondary cities that align with China’s expansion plans, such as Kunming and Urumqi.


&nbsp;

News and developments about airplanes, helicopters and unmanned air vehicles used in all varieties of operations, including airlines, military, business, commercial, general aviation and private.

New LCC a Product of Chinese Reform  

A new private low-fare carrier in China plans to launch operations in August.

2024 Corporate Aviation Leadership Summit

Matt Thurber

News and issues relating to business, corporate and private aviation, primarily regarding turbine-engine-powered airplanes and helicopters. Subjects include aircraft, engines, maintenance, operations, personnel, acquisitions, accidents, safety, security, and training.

Similarities between the piston- and jet-powered Cirruses make transition training easier

Transport Canada Certifies Cirrus SR G7 and Vision G2+

Kerry Lynch

Aircraft will be able to take off in 150 feet of runway

Electra Launches Hybrid-electric EL9 STOL Aircraft

Hanneke Weitering

First production-representative Alia CX300 takes flight

Beta Flies First Electric Airplane Produced in Vermont Factory

G700 next headed to the Bahrain International Airshow for display alongside the G500

Gulfstream’s G700 Surpasses 65 City-pair Records

Honda's secretive eVTOL program picks up steam

FAA Greenlights Honda eVTOL Flight Tests

Curt Epstein

Some models are seeing high demand, others not so much

Broker: Preowned Cessna Citation Market Remains Mixed

Charles Alcock

New developments at airports including regulations and noise issues; legal disputes; openings, acquisitions and mergers.

News and developments about aircraft engines, including turbofan, turboprop, turboshaft and piston.

French start-up's new headquarters is located at Rochefort Airport

VoltAero Opens Assembly Facility for Cassio Hybrid-electric Aircraft

News and issues concerning the aviation charter and fractional-ownership industries and markets, including company announcements, regulations, new developments and labor issues.

More In Aircraft