Established in 2004, Chengdu Airlines is a privately owned airline based in Chengdu, Sichuan, People's Republic of China. The carrier operates domestic passenger services out of its main base at Chengdu Shuangliu International Airport.
Location of Chengdu Airlines main hub (Chengdu Airport)
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China’s second-tier carriers are hard at work at present, rapidly expanding their domestic and (in some cases) international route networks. However, the vast majority of these airlines are now doing so under the control of the "Big Three" carriers and/or HNA Group, as consolidation accelerates in China. As such, China’s airline evolution is at a very interesting stage. Where previously the major airlines: 1) established considerable branch carrier networks to serve diverse geographic areas in China; and 2) eliminated brands of the acquired airlines, they now appear to be looking more strategically at segmenting the market, retaining the second-tier carrier brands, particularly those focused on tourism/leisure markets.
China’s 'big three' airports - Beijing, Guangzhou and Shanghai - may be exhibiting a strong rebound in demand, but some truly breathtaking activity is occurring at China’s second tier airports. Growth rates of 25% and above are commonplace, as are extensive upgrade and expansion projects to keep up with galloping demand. A battle is meanwhile unfolding between airports in Western China for the mantle of that region’s pre-eminent hub, while airlines are adjusting their strategies for serving China’s burgeoning second-tier airport network in the face of rising competition from high speed rail.
The Chinese private airline sector remains a small, yet growing, part of China’s aviation industry, comprising approximately 3.4% of total domestic capacity (seats) and currently only operating in the domestic market.
Start-up carriers are continuing to enter the market in most places in 4Q2009, taking advantage of lower aircraft prices, as well as airline failures and/or capacity reductions by rivals in some markets. Several of the new carriers are the result of cross-border expansion by airlines in emerging markets, such as Eastern Europe and Africa.