Spring Airlines deputy GM strategy/international brand manager Jonathan Hutt, speaking at CAPA's World Aviation Summit in Amsterdam, stated (26/27-Nov-2013) the carrier expects five to eight new LCCs to launch in China in coming years as a result of new government policy. Mr Hutt expected LCCs there to be a LCC at Guangzhou and Beijing. Shanghai-based Juneyao Airlines has announced its LCC subsidiary, Jiu Yuan Airlines, will be based at Guangzhou. [more - CAPA Analysis]
Spring Airlines predicts five to eight new LCCs, including in Guangzhou and Beijing
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Juneyao Airlines: will launch long haul, join Star Alliance, but must balance Air China's interests
China's Juneyao Airlines has always operated in the shadow of Spring Airlines. They launched from Shanghai within a year of each other and have had similar growth trajectories. Yet Spring sought the limelight and garnered attention for its low cost model. Juneyao, in contrast, often seemed to want to keep a low profile.
There are now rapid changes for Juneyao, and not just in comparison to its quiet history. In 1H2017 Juneyao is due to be the first "Connecting Partner" for Star Alliance, which will regain a footprint in China's commercial centre. Juneyao will likely transition to being a full Star member.
This will help the airline to grow its footprint as it takes delivery of its first of five 787s in 2018. Traffic rights internally and externally will be a challenge, but Juneyao must keep even closer watch on its quasi strategic patron, Air China. It is in the interests of Beijing based Air China to have a friend in Shanghai, but Air China's ultimate objective with Juneyao could be consolidation.
CAPA Asia Aviation Summit Day 2: AirAsia X & Spring Airlines discuss opportunities in China
The second day of the CAPA Asia Aviation Summit began with a Q&A featuring AirAsia X CEO Benyamin Ismail and Spring Airlines VP Jonathan Hutt. The Chinese market dominated the conversation, particularly opportunities between China and Southeast Asia for both airlines.
The CAPA Asia Aviation Summit was held on 16-Nov-2016 and 17-Nov-2016, attracting over 300 delegates. The summit also included a gala dinner on 16-Nov-2016 featuring the CAPA Asia Pacific Aviation Awards for Excellence.
The remainder of Day 2 featured three panels: on distribution, ancillaries, and a wrap-up of the market outlook.