Inaugural deal between private carriers
Mar. 28, 2006
Two Chinese private airlines announced yesterday they would unite as strategic partners to seek better development in the civil aviation sector.
Shanghai-based Junyao Group and Tianjin-based Okay Airways, China's first private airline, recently signed the agreement in Beijing.
The co-operation is said to be the first partnership among China's private aviation carriers.
According to a joint news release by the two companies, the two will exchange aviation professionals, routes, and expertise in marketing and management.
The joint venture includes the introduction of airplanes, but both sides declined to provide further details on the partnership.
Involved in different industries, Junyao Group is preparing to establish an airline based in Shanghai. It plans to introduce three Airbus planes to fly between major cities, and the airline expects to let its first flight take-off in the third quarter of this year.
"The partnership with Okay Airways will upgrade Junyao Group's service capability in the northern China market," said the news release, since Okay has already opened flights between Tianjin Municipality in North China and seven other cities, with two Boeing 737-800s currently in service. For Okay Airways, the Junyao Group is not new to civil aviation at all.
"Junyao Group has a lot of experience in operating routes, which will benefit Okay Airways," said Han Jing, spokesman of Okay Airways, which entered the public aviation sector last year.
Han referred to the Junyao Group's history as starting out as an aviation service company that ran charter flights to becoming a group with four major businesses, including aviation, dairy products, real estate and retail business.