China’s Juneyao Air plans low-cost carrier

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Juneyao Airlines currently operates a fleet of Airbus A320s
Juneyao Airlines currently operates a fleet of Airbus A320s

Shanghai-based Juneyao Airlines is planning to set up a new low-cost unit based in Guangzhou.

The new carrier will be named ‘9 RMB Airlines’, in a nod to the low-cost fares it expects to offer.  Juneyao said the carrier will offer weekly promotional fares as low as just CNY9 (US$1.50).

“We have the plan to set up a new low-cost subsidiary in Guangzhou. We have already submitted our application to Civil Aviation Administration of China (CAAC), and we are waiting for the approval,” said Wang Junjin, chairman of Juneyao Airlines.

Currently there are no LCCs based at Guangzhou’s Baiyun International Airport – the home of China Southern Airlines. Juneyao Airlines began operations in 2006 and currently flies to more than 50 cities in China. It also recently launched its first cross-Strait flights to Taiwan.

The airline operates 33 Airbus A320 aircraft, but plans to increase its fleet to 50 jets by 2015.

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