No.203

Jiuyuan Airlines was approved to be founded in Guangzhou
ReleaseDate: 2014-03-06

At the beginning of New Year, Jiuyuan Airlines Co., Ltd, a low cost airline company which relies on low ticket price as its selling point, has formally received approval from the Civil Aviation Administration of China to set up headquarters in Guangzhou after the public notice period expired.

It has been learned that Jiuyuan Airlines is jointly invested by Shanghai JuneYao Airlines Co., Ltd, Elion Resource Group Limited Company, Xinhualian Holding Co., Ltd and natural person Ji Guangping. Registered capital of the application is RMB 600 million, in which JuneYao Airlines invested RMB 414 million yuan in cash and in kind, accounting for 69% of registered capital; Elion Resource Group Limited Company invested RMB 90 million yuan in cash, accounting for 15% of the registered capital; Xinhualian Holding Co., Ltd invested RMB 60 million yuan in cash, accounting for 10% of the registered capital; natural person Ji Guangping invested RMB 36 million yuan in cash, accounting for 6% of registered capital. With its base airport located at Guangzhou Baiyun International Airport, Jiuyuan Airlines mainly operates domestic aviation passenger and cargo transport business. During the early period of company setup, its flight, mechanics, crew, and dispatching professional technical personnel will be introduced from JuneYao Airlines.

According to the chief persons in charge of the preparation of Jiuyuan Airlines, Jiuyuan Airlines came into existence when the Civil Aviation Administration of China was promoting policy guidance to develop low cost civil airlines in China; its inception caters to the needs of mass-oriented strategy for developing a civil aviation power. The reason that Jiuyuan Airlines selects its base in Guangzhou to focus on low cost airlines is due to the fact that the Pearl River Delta region is located at the forefront of China’s reform and opening up, and the most mature region of market economy development, where economic development standard is high, residents’ income level is high, population needs are diversified, economic trade is active, and population flow is frequent, so there is vast space of development for low cost airlines; meanwhile, Guangzhou is also the China’s “South Gate” to access South Asia, Southeast Asia, and Australia. Jiuyuan Airlines will strive to highlight its self advantages in cost through innovation culture and highly efficient management, continually provide safe, inexpensive, and convenient travel options for passengers. After starting operation, Jiuyuan Airlines will continually introduce special cheap flight tickets with prices as low as 9 yuan and 19 yuan on many flight routes.

According to relevant info, at present the market share of low cost airlines in China is below 5%, which still lags far behind that of developed countries. Since May 2013, the Civil Aviation Administration of China has granted approval to acknowledge the setup of 6 airlines in succession including Jiuyuan Airlines, but among the 6 newly established airlines only Jiuyuan Airlines has made it clear to adopt low cost mass-oriented operation model.