- CAPA Analysis
- Schedule Analysis
- Cargo Analysis
- Route Maps
- Fast Fact Report
- Airline Status
- IATA Code
- ICAO Code
- Corporate Address
- No. 218, Yingbin Er Rd, Shanghai,
- Main hub
- Shanghai Hongqiao International Airport
- Business model
- Full Service Carrier
- Domestic | International
- Airline Group
- Part of Juneyao Airlines Group
- Star Alliance (connecting partner)
- Alliance Pending
- Association Membership
- Codeshare Partners
- Air China
China Eastern Airlines
Established in 2005, Juneyao Airlines is a privately-owned, listed airline headquartered in Changning District, Shanghai, China. The carrier, which is a subsidiary of the Juneyao Group, operates domestic service from its two hubs at Shanghai Pudong and Shanghai Hongqiao airports. Juneyao Airlines is expected to become a Star Alliance Connecting Partner in 2Q2017.
Location of Juneyao Airlines main hub (Shanghai Hongqiao International Airport)
Juneyao Airlines Co Ltd share price
36 total articles
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.
Star Alliance's connecting partner model is evolving beyond a proposition for low cost airlines. In Oct-2016 Star disclosed its intention to add Shanghai-based Juneyao Airlines. Although Juneyao is full service, the semantics of full service versus low cost have proven irrelevant: the core concept of Star's connecting partner platform is to secure transfer options in key markets. The Star benefits for a connecting partner are only realised when connecting on the same itinerary to a Star member. Unlike the situation with full membership, Star benefits are not offered on a connecting partner when the itinerary is only point-to-point.
Juneyao gives Star a partner in China's financial hub and replaces Star's former Shanghai partner, Shanghai Airlines, which left when it merged with SkyTeam's China Eastern. Juneyao is the second announced member after the South African Airways LCC Mango, but Juneyao will be implemented first in 2Q2017. As Juneyao grows and plans intercontinental 787 flights, the airline may transition to a full member.
Growth in Chinese aviation is now well evident in the number of Chinese operators of widebody aircraft. In early 2012 only five Chinese airlines operated widebody aircraft. The Jun-2016 delivery of an A330 to Tibet Airlines increased the number of widebody operators to 10, and by the end of the decade there will be – if all plans are followed through – at least 17 Chinese airlines operating widebody aircraft. This potentially sets up the market for more widebody and long haul airlines within China than in the rest of Northeast and Southeast Asia.
At the Farnborough Airshow Donghai Airlines and Ruili Airlines sought to acquire 787-9s, while Lucky Air will also take 787-9s and become China's first long haul LCC. Shenzhen Airlines will take A330s, while Juneyao, Okay Airways and Shandong Airlines are also considering the type.
There are also possible new entrants like Qingdao Airlines, whose shareholder Nanshan Group now owns Virgin Australia. Widebodies at Donghai, Ruili, Juneyao or others would mean a widebody operation from an airline not affiliated with one of China's four airline groups: Air China, China Eastern, China Southern and Hainan Airlines. The smallest of these, Hainan Airlines, operates more widebodies than all the secondary and tertiary airlines combined.
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.
In 2010 the Star Alliance lost its member in China's financial heart – Shanghai Airlines – when SkyTeam member-elect China Eastern merged with Shanghai Airlines. Privately owned Juneyao Airlines is based in Shanghai and plans to decide by the end of 2016 whether to join a global alliance. Partnerships could add impetus to Juneyao's nascent plans to fly long haul by the end of the decade.
Any decision to join an alliance would almost certainly result in Juneyao selecting Star. Star presents the greatest opportunity for Juneyao to receive connecting passengers. Long haul Star capacity into Shanghai Pudong is larger than the combined capacity from oneworld and unaligned airlines (and some of them, like Qantas, are cosying up to China Eastern). Juneyao is ruling out being in the same alliance as China Eastern, which is currently SkyTeam (and perhaps in the future – oneworld). Juneyao's network is complementary to existing Star members Shenzhen Airlines and Air China and the airline codeshares with Air China, which for a few years has wanted Juneyao to join Star.
Clouds loom over Cross-Strait airline market as Taiwan faces political change. Hong Kong may benefit
The ruling, and pro-Beijing, KMT party is expected to lose the Jan-2016 elections in Taiwan. Under the KMT's leadership Beijing and Taipei have forged closer ties, including the launch of charter and then scheduled Cross-Strait flights between mainland China and Taiwan, which had been prohibited for decades. There has been growth, with increase in overall frequency as well as destinations available to be served in the still tightly-regulated market.
An outstanding gripe from the Taiwanese side was that, for complex reasons, their airlines were not permitted to carry transfer traffic from mainland China to Taiwan and beyond to other markets – such as Australia and North America, two popular long haul markets from mainland China and for which Taiwan is well positioned to be a hub. Earlier in 2015 when relations were warmer, Taiwanese carriers were expected to receive transfer traffic rights by the end of the year. But as the Taiwanese political situation has turned unfavourable to Beijing, an Oct-2015 meeting did not grant transfer traffic rights. The bigger risk is that cooling relations would slow Cross-Strait liberalisation – or at an extreme, recede. One outcome could be that visitor growth would instead funnel through the Hong Kong hub.