KunPeng Airlines may be the last start-up in China for some time, according to the Mesa Airlines (MESA) which partnered with Shenzhen Airlines to create the new carriers, set to launch in a few weeks.
China imposed a moratorium on new airlines through 2010 citing pilot shortages and infrastructure constraints as well as a desire to boost the prospects for domestic carriers. The earliest a proposed carrier can even apply is 2010. The government, however, imposed five exceptions including using AVIC 1’s AIR 21 jet. Other exceptions include airlines who will use foreign pilots, such as Mesa’s plan. Cargo operations will also be allowed along with airlines focuses on the less developed western and northwestern China. If an airline will fly only at night after peak travel times, it will also be allowed to launch.
Mesa meets some of these exceptions and, although it will launch next month with three CRJ 200s, it is supporting GE in its joint venture with AVIC and may include Chinese aircraft in its fleet. The airline is on track to have 20 aircraft in place by the 2008 Olympics. Mesa CEO Jonathan Ornstein noted that, with its partner, the program could represent a demand for 100 aircraft.
“It is interesting to note that in a country of 1.4 billion people, only 70 regional jets are currently in operation, less than that at United’s hub operation in Chicago,” he said, adding the joint venture is still on track for launch in mid- to late September. He noted the recent growth of the Chinese market topped 16 percent and was expected to continue in the mid-teens for the foreseeable future.