Regional Round-Up
Chinese Eastern enters budget carrier market
September 1st 2014
Shanghai-based China Eastern Airlines has become the first of the “Big Three” carriers to enter the budget sector with the conversion of its Beijing-based airline, China United Airlines, into a low-cost carrier. Read More » Last November, the Civil Aviation Administration of China (CAAC) announced a relaxation of the rules governing the operations of Mainland LCCs. It also said it wanted full-service carriers to establish budget subsidiaries. China United Airlines is the only Beijing-based carrier to operate from the capital’s military airport, Nanyuan. Set up in 1986 as the civil air transport division of the People’s Liberation Army (PLA), the airline garnered global attention when it bought a B767 300ER private jet for China’s then president, Jiang Zemin. It was alleged that listening devices were planted onboard which were controlled and monitored by satellite by unnamed parties. Scheduled services ceased in 2002 and in 2003 all operations were suspended after the Chinese government banned the PLA from partnerships or operating non-military activities. Shanghai Airlines acquired 80% of the carrier and re-launched services in 2005. China Eastern took full control of the airline four years ago.
