My Account Menu

CAPA Login

Register to trial CAPA Membership!

Juneyao Airlines and Spring Airlines to use IPOs to grow fleets and expand the LCC model in China


In a country with a very small LCC penetration rate – 3.5% internationally and 6.1% domestically in FY2011 – Spring Airlines, and Juneyao Airlines to a lesser degree, have shown success is possible in China's heavily regulated market that favours the larger, state-owned ‘Big Three’ carriers. While challenges exist, the potential is huge for the nation's LCC market.

LCCs first entered the China market in 2005, with Spring Airlines, Juneyao and Okay Airways all launching operations with the low-cost model, although in less than eight months, Tianjin-based Okay Airways gave up the model. Spring Airlines in particular has had considerably success in carving out a niche, with the carrier maintaining industry-leading load factors and reporting consistent profitability, often while the state-owned carriers have reported losses. Spring and Juneyao are now looking towards their next phase of expansion and both are planning to launch IPOs in 2012 to help fund continued fleet and network expansion.  [2515 words]

Unlock the following content in this report:


  • LCCs yet to take off in China market but potential is huge
  • Profitable Spring Airlines to conduct IPO in 2012 to support ambitious growth plans
  • Spring Airlines and Juneyao Airlines enter Beijing-Shanghai Hongqiao market
  • Juneyao Airlines preparing for IPO to support fleet expansion

Graphs and data:

  • LCC capacity share (%) of total seats: 2001 to 2011
  • LCCs operating in the China market (domestic and international seats): 12-Dec-2011 to 18-Dec-2011 Pure international carriers in bold
  • Trips per capital by country: 2010
  • Spring Airlines network map: Dec-2011
  • Beijing Capital International Airport to Shanghai Hongqiao Airport (seats per week, one way): 19-Sep-2011 to 01-Apr-2012
Please login to continue reading or find out more about CAPA Membership below.
This content is exclusively for CAPA Membership Subscribers

CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.