China Eastern unit shifts to budget carrier

Among the three largest domestic carriers, China Eastern has been the early mover in setting up a budget line. It established a low-cost joint venture in Hong Kong in 2012, which is still waiting for regulatory approval to operate flights.

The other two State-owned airlines may convert some of their subsidiaries into budget carriers, but privately owned carriers are moving faster.

The low-cost market in China is dominated by Spring Airlines Co Ltd.

Shanghai Juneyao Airlines Co Ltd expects its Guangzhou-based low-cost subsidiary (Jiuyuan Airlines Co Ltd) to offer its first flight in August.

HNA Group Co Ltd, parent company of the fourth-largest carrier in China - Hainan Airlines Co Ltd - plans to convert all its aviation subsidiaries except for Hainan Airlines into budget carriers, said Wang Yingming, executive chairman and executive president of HNA Aviation Holding Co Ltd.

Cao Yunchun, a professor at the Civil Aviation University of China, said that budget airlines are in their infancy in China, but their development is necessary for the improvement of the whole aviation sector.

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