Air China 777-300ER.
Air China is expected to launch its business jet subsidiary, Beijing Airlines, in conjunction with the Beijing municipal government in April or May (ATW Daily News, Aug. 23, 2010). The new JV will be set up based on the assets of CA’s wholly owned business jet subsidiary that was established in 2003. It operates a fleet of seven aircraft, comprising three G450s, one Airbus A318, one Falcon 7X, one G200 and one Challenger 605. CA noted it would introduce more aircraft this year.

The Beijing-based carrier will have a registered capital of CNY1 billion ($152 million). CA will hold an 80% stake while the municipal government will hold the rest.

Beijing Airlines will face fierce competition from Hainan Airlines subsidiary Capital Airlines, which was launched last year and operates 24 business jets. It has more than a 90% share of the Chinese business jet market (ATW Daily News, May 24, 2010).

China’s commercial business jet market is still quite small, comprising a fleet that is fewer than 40 aircraft. Industry analysts point out there is big growth potential owing to the rapid expansion of the Chinese economy. It is predicted that China may need 600-1,200 business jets in the next 10 years.


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