BEIJING (AFX) - China's fledgling private airline industry could take off in the first half of this year, using busy holiday travel seasons to launch their services, the China Business Weekly reported.
The first group of private airlines could begin operations in the next few months, for example during the week-long May Day public holiday, the report said, citing unnamed industry observers.
New rules by civil aviation authorities that took effect last week have set the bar low for entrants into the industry, allowing anyone with three planes to run an airline.
The rules, as reported earlier by the China News Service, also permit foreigners to have up to 25 pct ownership in the companies.
At least three private-sector airline operators have received approval from civil aviation authorities and plan to offer low-cost, no-frills services, the China Business Weekly said.
They include United Eagle Airlines in the southwestern city of Chengdu, Air Spring in the eastern city of Shanghai, and Okay Airways, based in the Beijing area, according to the paper.
The paper quoted Hu Wenbin, a United Eagle spokesman, as saying that the company's first three planes, all leased, could be in place before the end of the month.
Also suggesting an early start for the company, it placed an order of 350,000 tonnes of aviation fuel with China Aviation Oil last month, according to the paper.
United Eagle is likely to focus on offering cheap flights for China's western frontier region, it said.
The main business for Shanghai-based Air Spring will be chartered flights and regional services within China, according to the report.
Okay Airways will operate out of Binhai International Airport about 200 kilometers from the Chinese capital, and will probably seek to carve out a niche for itself in the cargo business, the paper reported.
The paper cited unconfirmed reports that a fourth company, Huaxia Airlines headquartered in southwestern Chongqing municipality, had also obtained approval to operate.
ph/sm/rc
For more information and to contact AFX: www.afxnews.com and www.afxpress.com
The first group of private airlines could begin operations in the next few months, for example during the week-long May Day public holiday, the report said, citing unnamed industry observers.
New rules by civil aviation authorities that took effect last week have set the bar low for entrants into the industry, allowing anyone with three planes to run an airline.
The rules, as reported earlier by the China News Service, also permit foreigners to have up to 25 pct ownership in the companies.
At least three private-sector airline operators have received approval from civil aviation authorities and plan to offer low-cost, no-frills services, the China Business Weekly said.
They include United Eagle Airlines in the southwestern city of Chengdu, Air Spring in the eastern city of Shanghai, and Okay Airways, based in the Beijing area, according to the paper.
The paper quoted Hu Wenbin, a United Eagle spokesman, as saying that the company's first three planes, all leased, could be in place before the end of the month.
Also suggesting an early start for the company, it placed an order of 350,000 tonnes of aviation fuel with China Aviation Oil last month, according to the paper.
United Eagle is likely to focus on offering cheap flights for China's western frontier region, it said.
The main business for Shanghai-based Air Spring will be chartered flights and regional services within China, according to the report.
Okay Airways will operate out of Binhai International Airport about 200 kilometers from the Chinese capital, and will probably seek to carve out a niche for itself in the cargo business, the paper reported.
The paper cited unconfirmed reports that a fourth company, Huaxia Airlines headquartered in southwestern Chongqing municipality, had also obtained approval to operate.
ph/sm/rc
For more information and to contact AFX: www.afxnews.com and www.afxpress.com
© 2005 AFX News
