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9 Air, first all-new Chinese low-cost airline since policy reforms, launches in Guangzhou

Analysis

Chinese start-up 9 Air/Jiu Yuan Airlines commenced scheduled service on 15-Jan-2015 in the domestic Chinese market. Perhaps fittingly, 9 Air will use the IATA code AQ, formerly with "Aloha Airlines", whose name is a Hawaiian salutation. 9 Air will be the first to greet a new Chinese environment: the airline is the first low-cost carrier to launch from scratch under China's policy reforms.

That distinguishing label comes with its burdens. 9 Air's launch was repeatedly delayed and a soft launch with charter-only service was on the short 387km Guangzhou-Zhanjiang route. Nonetheless, China Southern - also based in Guangzhou - cut prices on that service.

9 Air's launch on a single Guangzhou-Wenzhou-Harbin routing keeps it out of the thick of competition, but it will inevitably take a higher profile as it receives the first of 50 737s it directly ordered.

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