CHINA: “OK” for Okay’s cargo ops, but not for passengers
The chairman of the controlling shareholder of China’s first privately run carrier, Okay Airways, Juneyao Group’s, Wang Junjin, said the troubled airline will resume flying “as soon as possible” following a one-month shutdown imposed by China’s aviation authority. The carrier was forced to suspend passenger operations for one month from mid-December as a result of […]
December 1, 2008
The carrier was forced to suspend passenger operations for one month from mid-December as a result of conflicts between Juneyao and airline management. Okay’s cargo cooperation with FedEx will continue to operate as usual.
In a statement Wang said Okay had been suffering operating losses due to “its unclear management focus to operate trunk routes and regional routes at the same time, as well as to explore not only the passenger transport market but also the cargo transport market.”
The Tianjin-based carrier currently operates three 737 passenger aircraft, three 737-300 freighters, one MA60 and two Y-8s on nearly 20 domestic routes.
Smaller privately run Chinese carriers are struggling to survive, especially in the current difficult environment, as a result of difficulties in securing profitable routes and pilots. Wang said he plans to optimize Okay’s route network, improve efficiency and reduce operating costs in order to raise performance.