Source: China Hospitality News Author: 09/06/2006
Leaders from the five domestic privately-run airlines have gathered in Chengdu to exchange views on the development of private airlines in China and to cooperate in the face of increasing oil prices and fierce market competition.
The five leaders are Wang Zhenghua, president of Spring Airlines; Wang Junjin, president of Junyao Group's Shanghai Jixiang Airlines (Editor's Remark: also unofficially known as Shanghai Auspicious Airlines); Lan Shili, president of East Star Airlines; Li Jining, president of UE Air; and Liu Jieyin, president of OK Air. Of the five private airlines, four are already operational and the newest one, Junyao Group's Shanghai Jixiang Airlines, is scheduled to start operation later this month.
The parties have reached a preliminary agreement to share resources, aviation materials, flying routes, codes and professional technicians as they have formed a loose alliance.
Hu Wenbin, a representative from UE Air, says they will hold this kind of exchange and cooperation periodically in the future in order to explore more areas for cooperation.
Since China gave permission to start privately-run airlines, some including OK Air, UE Air and Spring Airlines, have begun their flying business and others like Huaxia Airlines are still in preparation. However, these private airlines are in a difficult position resulted from high oil prices and market competition imposed by traditional airlines.