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          Regional airline debuts to tap potential market

          By Shangguan Zhoudong (chinadaily.com.cn)
          Updated: 2008-03-28 16:49

          Government officials and executives from related companies attend the debut ceremony of Joy Air on March 28 in Beijing. [chinadaily.com.cn]

          Joy Air Co Ltd, a regional airline joint venture between China Aviation Industry Corporation I (AVIC I) and China Eastern Airlines, made its debut today in Beijing.

          With a registered capital of 1 billion yuan ($141.84 million), the regional aviation firm is 60 percent owned by AVIC I, while China Eastern holds the remainder.

          The airline will use 50-seater MA60 turboprops, manufactured by AVIC I, at the beginning and add ARJ21 regional jets to its fleet in the future. It plans to have 100 planes within eight years.

          Based at Xi'an Xianyang International Airport, the firm will focus on the development of regional aviation businesses, including both passenger and cargo transportation, in China's western regions.

          "The debut of Joy Air is of significant meaning to tackle the imbalance between main lines and regional lines and imbalanced aviation transportation capacity between China's east and west regions," Hu Wenming, vice general manager of AVIC I and chairman of Joy Air, said at the firm's debut ceremony today in Beijing.

          "We will expand our network and seek to establish transfer mechanisms with China's three biggest main flight route operators," Hu said.

          "Joy Air will build its aviation network linking large-sized cities to adjacent small- and medium-sized cities," China Eastern chairman Li Fenghua said at the ceremony, adding Joy Air will enable more consumers to enjoy cheap air services.

          According to Zhang Hongying, director general of the Department of Aircraft Airworthiness Certificate under the General Administration of Civil Aviation of China (CAAC), CAAC is considering giving support to regional airlines that use homemade aircraft.

          At the ceremony, Joy Air and AVIC I Commercial Aircraft Co Ltd also signed the letter of intent to buy the regional jet ARJ21-700.


          (For more biz stories, please visit Industry Updates)

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