Shandong subsidiary abandons business jets after failing to turn a profit in four years
Shandong Airlines subsidiary Rainbow Jet has shut down its business jet charter operation and sold both of its Bombardier Challenger 604s.
Industry sources say the aircraft, configured to seat up to 12 VIPs, were sold at the end of last month and are being prepared for delivery to new customers outside Asia.
Rainbow Jet confirms it has sold its only two business jets and for now does not intend to acquire substitute aircraft or resume its VIP charter operation, which was launched in 2002. The operator will continue to operate five Cessna 208 Caravans on general aviation and government missions.
Shandong was the second of four Chinese airlines, after Hainan Airlines, to launch business jet charter divisions and the first to offer large-size cabins. But all four operators, also including Air China and Shanghai Airlines, have so far failed to turn a profit.
Air China, which operates a Gulfstream GIV and Learjet 45XR, acquired a majority stake in Shandong in 2004, but Rainbow Jet denies the acquisition had any impact on its decision to cease operating business jets.
Shandong originally ordered four Challenger 604s in 2001 but in 2002, realising the VIP charter market in China was still limited, converted two of the orders to CRJ700s in airline configuration. Rainbow Jet tried to grow its portfolio by adding managed aircraft, but failed to find any customers.
BRENDAN SOBIE / SINGAPORE
Source: Flight International
