Mesa Airlines is to establish a joint-venture airline in China with Shenzhen Airlines. The US regional says it expects the new airline to begin flying within 12 months, initially operating 50-seat regional jets on domestic routes.

The new airline, which is expected to be named Beijing Airlines, will focus on services to Shenzhen, Beijing, Chongqing, Xiamen, Nanjing, Kunming, Dalian, Shenyang, Xian, Zhengzhou and Nanning.

Mesa, which operates Bombardier and Embraer regional jets, says that the new airline expects to have 20 50-seat aircraft in service before the Olympic Games in Beijing in 2008, "growing to more than 100 planes within five years, comprising a mix of 50-, 70- and 90-seat regional jet aircraft".

It does not say what the ownership breakdown will be, but foreign ownership in Chinese airlines is capped at 49% and no single foreign shareholder may have more than 25%.

"Mesa will initially provide significant technical capability, including pilot, maintenance and operations support and training, as well as the sourcing of aircraft," says Mesa Air Group chairman and chief executive Jonathan Ornstein, noting that it is the first US passenger airline to forge such a venture in China.

Shenzhen Airlines is based in the southern Chinese city of Shenzhen, near Hong Kong. In addition to its domestic and international operations with Airbus and Boeing narrowbodies, it has a joint-venture international cargo carrier called Jade Cargo International in partnership with Lufthansa Cargo.

China's government has for years been pushing airlines to expand their regional jet operations to create a US-style "hub and spoke" network for the country.




Source: Flight International