China United to become Beijing’s first LCC
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China United Airlines will start operating as a low-cost carrier this year, becoming the first budget airline based in Beijing.
The carrier initially launched operations in 2004, as the Beijing-based unit of Shanghai’s China Eastern Airlines. But China United is now planning to undertake a major expansion plan that will double its fleet size and change its business model.
According to a recent statement issued by the airline, China United will increase its fleet size from 25 to 50 passenger aircraft by the end of 2015. It will also move to a low-cost model, operating flights from three bases in China – Beijing’s Nanyuan Airport, Foshan Airport in Guangdong province, and an as-yet-unnamed hub in Western China.
The budget move for China United follows the relaxation of rules governing the pricing of Chinese airfares, and other regulations that had previous hindered the development of domestic LCCs.
Shanghai-based Spring Airlines was for many years China’s only LCC, but it has since been joined by Chongqing-based West Air, a subsidiary of Hainan Airlines, while Juneyao Airlines is planning to launch a low-cost subsidiary called 9 RMB Airlines.
China Eastern meanwhile, is also in the process of setting up Jetstar Hong Kong, in partnership with Qantas and Shun Tak Holdings.
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