Ruili Airlines chooses Cambodia for first international offshoot

by DOMINIC LALK  

May 1st 2017

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Cambodia has a new airline, JC International Airlines, named after its Mainland Chinese parent, the Yunnan JingCheng Group, which launched Ruili Airlines in 2014. Read More »

Ever the shrewd businessman, Jingcheng founder and chairman, Dong Lecheng, saw a gaping hole in the Cambodian commercial aviation market: There is no airline with a noteworthy international network and ‘flag carrier’ Cambodia Angkor Air’s seven active aircraft are more often found performing charter services to China than flying scheduled routes.

General director of Cambodia’s State Secretariat of Civil Aviation (SSCA), Kao Sivorn, said JC International Airlines received its air operator’s certificate in March and launched revenue operations on March 17 with a return flight between Siem Reap and Macau.

“The main target of JC is Chinese passengers,” said Sivorn, although the airline has applied to the SSCA to fly to Bangkok, Singapore, Kuala Lumpur and Hong Kong as well as domestic hops from its Phnom Penh base to Siem Reap and Sihanoukville.

The SSCA boss said JC’s management has laid out plans to operate a fleet of 20 Airbus aircraft by 2020. The carrier launched services with two A320ceo on lease from Avolon - one is brand new and the other almost new following a short stint with airberlin. The aircraft have an all-economy class configuration of 180 seats. JC said it expected to receive another two or three A320s before year-end.

The Jingcheng Group and airberlin have developed close ties in the last three years. The majority of Ruili’s fleet are aircraft formerly in service with the struggling German airline. Nonetheless, Jingcheng broke with tradition when inaugurating its Cambodian venture: unlike Ruili’s all-Boeing fleet, JC has opted for Airbus.

JC International Airlines described itself as a “local International airline in Cambodia invested exclusively by Yunnan Jingcheng Group Co Ltd,” with its main operating base at Phnom Penh International Airport. It has registered capital of US$1 million with the Cambodian Ministry of Commerce, but its total investment is US$100 million, according to Sivorn. The full-service start-up is led by CEO Huang Dongyan.

There are five airlines registered in Cambodia: ‘flag carrier Cambodia Angkor Air; Sky Angkor Airlines; Cambodia Bayon Airlines; Bassaka Air and JC International Airlines. Only JC has outlined a significant growth strategy, leaving the country’s air travel segment with much to be desired, but also with business opportunities long gone in other Asia-Pacific markets.

Ruili Airlines continues to spread its wings with plans to establish a secondary branch in the north-eastern city of Shenyang, the capital of Liaoning province in China. It signed a strategic agreement with Liaoning Airport Management Co. Ltd. to cooperate on launching routes and building airport infrastructure.

Ruili flies from Shenyang to Kunming, Yulin and Hohhot and plans to add routes to Lanzhou and Wenzhou when it receives the necessary permits. It intends to base eight aircraft in Shenyang in 2018.

The Civil Aviation Administration of China (CAAC) has approved Ruili’s application to launch international services in 2017. It will first fly to Hong Kong, Macau and Taiwan before it adds services to southeast Asian destinations in Thailand, Malaysia and Vietnam. It operates 13 B737 aircraft and has 30 B737 MAXs (plus 30 options) and six B787-9s for long-haul operations in its order book.