Air China (CA) has launched Beijing Airlines after a one-year trial operation to enhance its position in the fast-growing domestic business aviation market.
The new venture received its operating certificate from the Civil Aviation Administration of China (CAAC) in April 2011 and started trial operations the following July with a registered capital of CNY1 billion ($157.4 million).
CA holds a 51% stake, Beijing Enterprises Group Co. and Beijing State-Owned Assets Management Co. each hold an 18% stake, and Zhongda Yinrui Investment Co. has a 13% ownership in the new airline.
According to chairman Fan Cheng, the new carrier reported a 2011 net income of CNY18.9 million and an operating revenue of CNY59.6 million. The Beijing-based airline has 11 business jets in its fleet.
Embraer predicts China will need 470 business jets worth $14.3 billion by 2020.
All major Chinese carriers have been exploring the burgeoning business aviation market in China. The new venture is expected to face fierce competition from Capital Airlines, the Beijing-based business jet subsidiary of Hainan Airlines launched with the assets of Deer Jet in May 2010.
Article Source : ATW Daily News
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