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Established in 2004, Okay Airways is a Chinese airline headquartered in the Fengtai District, Beijing. The carrier operates scheduled passenger and cargo services as well as charter passenger services services to destinations within China. Okay Airways is based at Tianjin Binhai international Airport.
Location of Okay Airways main hub (Tianjin Airport)
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The CAAC has come out with an extraordinary prediction this month: Chinese airlines will nearly double their fleet size to as many as 5,000 aircraft by 2015. In the shadows of a major international air show on home soil, one might expect some bullish sentiment from the hosts. But the comment, by CAAC Head Li Jiaxiang, that the nation's domestic carriers will have an expected combined fleet of 4,800-5,000 aircraft in just five years (from 2,600 at present) is a breathtaking assessment. Even if it's only 50% accurate, aircraft manufacturers big and small are in for a bonanza.
There are more than 30 airlines around the world that have publicly talked about tapping equity markets to help diversify funding sources, coinciding with an improved economic environment. Aircraft deliveries are also accelerating, with more than 1,300 aircraft scheduled for delivery this year alone, prompting the need for additional financing.
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.
Following the bankruptcy of East Star Airlines in late Aug-2009, there are now four private airlines - JuneYao, Okay, Spring and United Airlines - in China.
China’s nascent private airline sector faces another very challenging year after a series of nasty surprises of 2008. The first private carrier to take to the skies, Okay Airways, has also been the first casualty. For the Chinese airline sector, earthquakes, icestorms, security crackdowns and yuan depreciation were among the major challenges faced last year. Internal wrangling over strategy and the lack of skilled human resources added to the challenges for the smaller private airlines. In 2009, both the private and state-owned airlines face a slackening revenue environment amid a slowing economy.
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