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.
Aviation in China
A new airworthiness directive issued by the Civil Aviation Administration of China (CAAC) has resulted in the grounding of 15 Xi’an MA-60 turboprops following two incidences of landing gear failure. The directive requires operators inspect the undercarriages and gear annunciation systems of airplanes that have logged more than 6,400 takeoffs. Two Chinese airlines–Okay Airways and Joy Air–and carriers from the Philippines, Laos, Zimbabwe and Bolivia operate the 15 airplanes.
The Chinese airline industry is attracting scores of South American pilots who see far better opportunity for career advancement with fast growing and startup airlines in the People’s Republic than in their home countries.
Airbus and the Civil Aviation Administration of China (CAAC) Air Traffic Management Bureau signed an agreement to cooperate on modernizing China’s air traffic management (ATM) system with the goal of improving air transport capacity and efficiency. Led by Airbus’s ProSky ATM subsidiary, the ATM initiative accompanies a broader collaboration between Airbus and the CAAC on aviation safety, a five-year extension of which the parties announced last Friday.
The Civil Aviation Administration of China (CAAC) plans to increase the annual contribution of local airlines to the China Airport Construction and Development Fund (CACDF) from 5 percent to 6 percent of their revenue starting next year.
After spending many years introducing business jets to Chinese owners and founding his own company in 2010 to serve the rapidly evolving market for business aviation in China, Jason Liao has developed a unique perspective about general aviation operations in China. He is also the U.S. National Business Aviation Association’s chief representative in Asia.
During a ceremony at ABACE 2013 yesterday, Beijing General Aviation Industry Base Investment Holding Co. (BGA) signed a contract for delivery of two Quest Kodiaks, with options for four additional aircraft, from Blue Eagle Aviation Investment Co. of Beijing, the exclusive distributor in China for the turboprop single. These Kodiaks–the first to handed over to a customer in China–will be based at Badalin Airport, near Beijing, and initially used for emergency disaster assistance, said Liu Mingde, BGA’s director of sales.
“This is a milestone in the history of business aviation,” said NBAA president Ed Bolen at a press kickoff event for ABACE 2013 held in partnership with the Shanghai Airport Authority. “We’re delighted to be back in Shanghai.” The first ABACE was held in Shanghai in 2005. “With that initial show, we planted a seed,” Bolen said. “Thanks to a visionary number of leaders here in Shanghai and throughout the Chinese government, we’ve been able to see that seedling grow.”
Shanghai Hawker Pacific Business Aviation Service Centre, which is the host facility for ABACE at Shanghai Hongqiao International Airport, chalked up an aviation first in China when it received approval last month from the CAAC, China’s airworthiness authority, for maintenance on the Dassault Falcon 900 series, which includes the 900DX, 900LX and 900EX EASy models.
Beijing-based Blue Eagle Aviation Investment jumpstarted the ABACE 2013 sales action with an order from Beijing General Aviation (BGA) for the first Quest Kodiak turboprop singles to be delivered in China. BGA has placed an order for two Kodiaks, with options for four more. The first aircraft will be delivered following its certification from the Civil Aviation Administration of China (CAAC), expected this summer, with the second delivery to follow about six months later. Blue Eagle is the exclusive distributor for the Kodiak in China, Hong Kong, Macao and Taiwan.