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China's first private airlines to suspend passenger flight service

(Xinhua)
Updated: 2008-12-04 16:02

The chairman said "the company will use the suspension period for internal adjustments, which will hopefully help make a fresh start for the beginning of next year."

He said the company plans to resume flights before the upcoming Spring Festival in January as that is a popular time for travel in the country.

Okay Airways became China's first private carrier in 2005. It has a fleet of five Boeing 737 passenger jets, three Boeing 737 cargo planes, one China-made Xinzhou 60 and two Yun-8 cargo planes.

The private carrier sent a market signal for an expansion in February last year, when it signed a framework purchase agreement with China No. 1 Aviation Industrial Group for 30 Xinzhou 60 aircraft. The company declined to say how the current problem would affect the order.

Okay Airways had projected the 2008 passenger handling volume at 1.2 million at the beginning of this year. However, its volume in the first nine month only reached 710,000.

Besides Okay Airways, China's fledgling private airlines include Juneyao, East Star, Air Spring and EU Air. The companies engaged in talks this year to cope with the market slowdown, but there was no agreements reached.

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