Sep 2, 2008

Kunpeng Airlines - challenge for Chinese budget airlines

Kunpeng Airlines is based in Xian (China) owned by Shenzhen Airlines and Mesa Air Group (charter airlines). What really interesting about this low budget domestic airlines.

100 ARJ21 airplanes ordered by Kunpeng Airlines alone, this tells exactly how the airlines will start massive domestic airlines in China. Embraer E-Jets also sold in Chinese market. There have been more demands for smaller airplanes mainly due to less air travelers, however, as the railways network is still not complete, airlines should have great success due to the increase of business demand. Jet fuel price in China is under control, this leaves Mitsubishi Regional Jet less successful as the price for the plane is far too expensive for more comfort and fuel efficiency which cannot be better than cheaper airplanes for the same seat capacity.

More frequent air travelers will make business easier and economical without less need for using private business planes and more domestic needs of local airlines will leave more people can easily travel overseas. The competition for Chinese domestic airlines and aviation business.

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