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Juneyao Airlines continues international expansion in North & Southeast Asia, and seeks partners

Analysis

China's Juneyao Airlines is continuing the progressive international expansion it commenced in 2012, further diluting its mainland domestic market service (excluding "regional" services to Hong Kong and Macau). Thailand is so far a focus, with the country's leisure nature appealing to the privately-owned, and all-A320 family, operator's target market, of consumers in the high-income Shanghai area seeking a boutique service for leisure needs. Juneyao's 158-seat A320s have 150 economy and eight first class seats. The carrier also sees corporate traffic, but downplays this so as to avoid conflict with the state-owned carriers which receive preference on international routes.

Juneyao had considered services to Japan's resort island of Okinawa, but this has fallen out of favour due to political tensions between China and Japan. Chinese carriers are turning their attention to Southeast Asia as they seek new markets, and the region offers year-round pleasant weather. Juneyao is also expanding in South Korea and is considering a presence in Singapore. Juneyao hopes these services will raise its international profile and attract potential partners to work on international routes or feed passengers onto Juneyao's domestic network based around Shanghai. Juneyao is the 13th largest domestic carrier in China and has a fleet of 29 A320s, of comparable size to Virgin America, which has been able to attract international partners.

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