-T / T / +T | Comment(s)

Friday, October 5, 2007

Mesa's Joint Venture in China Takes Off

Kathryn Creedy

Mesa Air Group, Inc. launched its long-anticipated regional jet air services by Kunpeng Airlines in The Peoples Republic of China. Kunpeng Airlines, which had its first revenue flight recently, is the product of a joint-venture agreement between Shenzhen Airlines of China and Mesa Air Group, signed in Beijing in December 2006. The new airline is a milestone for Mesa since it is the first U.S. regional to tap the burgeoning foreign regional airline marketplace. Other regionals are only now studying the prospects of similar activities not only in China but perhaps other hot markets such as Russia and India.
"We are truly delighted that just nine months after entering into an historic joint-venture agreement with our friends at Shenzhen Airlines, the first two aircraft are now flying," said Mesa Air Group Chairman and CEO, Jonathan Ornstein. "This new jet service marks an important milestone in the growth and development of regional aviation in China.”
Ornstein offered thanks to everyone at China's civil aviation authority, the CAAC, and the Federal Aviation Administration who have supported Shenzhen Airlines and Mesa in bringing our shared vision to reality. “Our special thanks also go to Li Kun, President Shenzhen Airlines and to Kunpeng's management team of Zhang Pei, General Manager, Vice President; Zhou Tianshu, General Manager, Director Of Maintenance; Liu Changping, Chief Pilot; Ms. Jade Zhao, Pilot Recruiting and Operations Specialist; Oscar Arriaga, Vice President Technical Operations and Captain Michael Ferverda, Deputy General Manager and Chief Operating Officer,” he said. “Without their talents, commitment and hard work, none of this would have been possible."
Kunpeng Airlines operates regional air services within the Peoples Republic of China with a fleet of Bombardier CRJ-200, 50-seat regional jets. The first two aircraft, based in Xian, will each fly six scheduled revenue services per day serving Taiyuan, Tianjin, Yichang, Hohot, Nanchang, Hefei and Zengzhou. Ironically, the new service will compete against Grand China Express which took delivery of the first Harbin-produced Embraer ERJ 145 this week putting it into service at Tianjin. See related story, this issue.
KunPeng expects to have 20 aircraft in service by summer 2008 in time for the Beijing Olympic Games with plans to grow to more than 100 planes within five years, including 50-, 70- and 90-seat regional jet aircraft.
"The issuance of the Air Carrier Operating Certificate to Kunpeng Airlines last week and the commencement of revenue service this past Friday is a remarkable joint-venture achievement. The success of the project has been accomplished through a cultural blending of Mesa and Shenzhen operational groups that one would only hope to imagine, let alone see, come to complete fruition,” said Kunpeng Deputy General Manager and Chief Operating Officer, Mike Ferverda. “I am honored to be a guest in China and humbled to be a participant in this truly magnificent joint venture undertaking. I would like to thank Mesa employees Captain David Cheng, Ms. Sara Yu, Mr. Ying-Hua Wu, George Lippemeier, Bashir Agah as well as all those people at Mesa who have supported this very exciting project."