CAAC Calls For Low-Cost Airline Development

By Bradley Perrett
Source: Aviation Week & Space Technology
September 23, 2013

After years of being held back, low-cost commercial aviation in China looks like it might finally be receiving official recognition. The Civil Aviation Administration of China (CAAC) has told the country's small airlines to explore budget operations and suggested to big carriers they may have something to learn there, too.

Perhaps encouraged by the prospect of supportive policies, the small private carrier Juneyao Airlines has applied to set up a budget offshoot in Guangzhou, the home base of China Southern Airlines, the country's largest carrier, says an industry official. The policy turnabout may also be good news for Spring Airlines, China's most mature budget carrier, which has developed far slower than it planned, apparently because of official reluctance to let it move fast.

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