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HK-bound Juneyao Airlines plans fleet boost
ReleaseDate: 2010-12-14

December 14,2010,South China Morning Post

Shanghai-based Juneyao Airlines ,which launches its first overseas flight on Friday-to Hong Kong –plans to triple its fleet to more than 50 aircraft within five years.chairman Wang Junjin said yesterday.

Launched in 2006,Juneyao operates 17 Airbus 320s on more than 40 domestic routes.It was considering an initial public offering in Hong Kong or Shanghai it support its expansion,which will require more than US$1 billion by 2005,Wang said.

He is banking on buoyant demand from the mainland’s business capital.

The airline has committed to taking delivery of five A320s next year,followed buy six in 2012.Countng leased aircraft,its fleet will comprise more than 30 planes by 2012.

“We are very pleased to launch the Hong Kong-Shanghai route,as it is one of the most lucrative routes with a high percentage of business travellers.”Wang said.The once daily Hong Kong service will eventually rise to three flights a day.

Wang is confident that the airline’s passengers on the route will be business travellers,differentiating the airline from low-cost carrier Spring Airlines,which launched flights between the two cities three one-way fares as low as HK$199.

Juneyao is offering introductory one-way fares of HK$600 and return filghts for HK$1000.

Wang said Juneyao was a young,full-service carrier with a relatively competitive cost structure compared with airlines such as Cathay Pacific Airways and China Eastern Airlines. “We are still able to make more than 100million yuan(HK$116 million)in profit in 2009 ata time when most traditional carriers were being burned by mammoth losses,”he said.

Net profit would exceed 400 million yuan this year on revenue of three billion yuan from four million passengers,he said. Last year Juneyao carried 2.4 million passengers.

Wang said Juneyao intended to add flights to Japan,South Korea and Southeast Asia.Hokkaido in Japan would be its second international destination.

The mainland aviation market has undergone double-dight growth in the past five years,but faces the challenges of limited air space and competition from high-speed trains in the next five years,he said.