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9 Air, China's first new LCC since policy reforms, struggles to obtain slots in its Guangzhou home

Analysis

China, often referred to as Asia's 'last untapped market' for low cost airlines, is experiencing some road bumps on the way to a new marketplace. The Chinese start-up 9 Air has been the first all-new LCC launched since policy reforms to introduce more competition and efficiency. 9 Air made a splash by ordering 50 737s before its launch from Guangzhou, which was long thought to be ripe for competition from local incumbent China Southern, an airline that has a firmer grip on the city than Air China has in Beijing, or China Eastern has in Shanghai.

9 Air was conceived in a new era but born in the old. A political change in Guangzhou, the industry believes, resulted in 9 Air falling out of favour. It holds only four slot pairs at Guangzhou, all at rather undesirable times: departures before 7AM, arrivals after 1AM. Aircraft have been parked and others delayed. 9 Air's fleet of five flies unusual routings to maximise utilisation. One aircraft overnights at another city, a costly proposition for a start-up. 9 Air remains optimistic, believing that it can break even in 2016 and enter international markets, where there is less protectionism. 9 Air seeks a return to the liberalised future.

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