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China preparing to launch first private airline
(Agencies)
Updated: 2004-10-17 16:58

China's first private airline is due to begin service this year, the government said Sunday.

Okay Airways is in the last step of official review, which is expected to end Nov. 20, Xinhua News Agency said.

It is one of three private Chinese airlines that are applying for permission to fly, the report said. The others are United Eagle Airlines and Air Spring.

Okay Airways, based in Beijing, plans to focus on domestic cargo and passenger charters, flying a fleet of six leased Boeing 737 aircraft, Xinhua said.

Chinese regulators gave approval in May for the creation of private airlines.

The step is part of a modernization of the industry that began in the mid-1990s with the breakup of the government monopoly airline into small regional carriers.

Some flourished but most lost money, prompting the government to step in and force a series of mergers that in 2002 created three major Chinese airline groups.

United Eagle Airlines is based in Sichuan province in the southwest and hopes to begin service early next year, Xinhua said.

It said Shanghai-based Air Spring plans to fly to Europe and the United States.



 
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