Juneyao Airlines has confirmed plans to launch a new low-cost carrier based in Guangzhou.
First reported by Travel Daily in November last year, the new airline will be called ‘9 RMB Air’, in reference to the weekly CNY9 (US$1.50) promotional fares it plans to offer.
And according to a statement on the website of the Civil Aviation Administration of China (CAAC), the new venture has now been approved. Shanghai-based Juneyao will initially invest CNY414 million in the new LCC, or 69% of the venture’s total registered capital, with two Chinese investment companies also holding stakes in the carrier.
Expected to launch later this year, 9 RMB Air will be based at Guangzhou’s Baiyun International Airport, the home base of China Southern Airlines. Unlike Juneyao, which operates under a full service model, 9 RMB Air will be an LCC operating domestic routes using a fleet of Airbus A320 aircraft.
Juneyao first launched in 2006 and currently operates 34 A320s. But it is planning to expand significantly in the coming years, with a target of 50 aircraft flying to domestic and international destinations by 2015.