Air China to launch Beijing Airlines, to rival Hainan Airlines’ subsidiary Capital Airlines
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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