China Eastern Airlines (MU), which is deepening its cooperation with the Qinghai provincial government, is launching a Xining-Beijing route as part of expansion plans into West China. According to the Shanghai-based carrier, it will provide one aircraft to operate the route but Qinghai will cover operating expenses. The carrier plans to introduce another aircraft at a later date.
Industry analysts said this operating model is a “win-win” situation for the carrier and local government as it is “impossible” to get approval from the Civil Aviation Administration of China (CAAC) to launch a new carrier due to the regulator’s tightened restrictions of new domestic airlines.
MU has a 38% share of Qinghai market. It is also negotiating with the Ningxia local government and Gansu provincial government for similar agreements.
Article Source : ATW Daily News
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