Mesa Air to be first U.S. carrier in China
By Barbara De Lollis, USA TODAY
Phoenix-based regional airline Mesa Air Group (MESA) is set to become the first U.S. carrier to operate an airline within China, the world's fastest-growing air market.
Mesa and Chinese officials are announcing in China on Friday that Mesa is forming a new Beijing-based regional airline in a joint venture with Shenzhen Airlines, China's biggest private airline. Mesa will have a minority stake.
The yet-to-be-named venture could launch by late 2007 and operate 20, 50-seat regional jets by the time Beijing hosts the 2008 Olympics, Mesa Chairman Jonathan Ornstein said.
Mesa flies small jets for major U.S. airlines under brands such as Delta Connection and United Express. Regional jets are used by U.S. carriers to feed passengers from smaller cities to hub airports. The new venture comes as regional jet growth has peaked in the USA.
Ornstein has been eyeing the China market for two years, anticipating Chinese carriers would need regional jets to grow. He expects Mesa initially will help locate aircraft and provide maintenance, training and start-up expertise. Plans call for the new airline to fly 100 regional jets within five years. China now has about 70 regional jets flying for seven airlines.
American (AMR), Continental (CAL), Northwest and United airlines fly to China from major U.S. cities with wide-body jets. But they don't carry passengers within China, the world's most populous country. A large regional airline could help shape China's young aviation system and make in-country travel easier, said Washington-based aviation consultant Mo Garfinkle of GCW Consulting, which wrote the new airline's business plan. China "is the next natural market for RJs," Garfinkle said. "They're a game-changer."
Shenzhen Airlines President Li Kun called the joint venture "an important milestone." The new airline plans to link Beijing and a number of distant, large cities, some of which have millions of residents but no daily air service now.
By Barbara De Lollis, USA TODAY
Phoenix-based regional airline Mesa Air Group (MESA) is set to become the first U.S. carrier to operate an airline within China, the world's fastest-growing air market.
Mesa and Chinese officials are announcing in China on Friday that Mesa is forming a new Beijing-based regional airline in a joint venture with Shenzhen Airlines, China's biggest private airline. Mesa will have a minority stake.
The yet-to-be-named venture could launch by late 2007 and operate 20, 50-seat regional jets by the time Beijing hosts the 2008 Olympics, Mesa Chairman Jonathan Ornstein said.
Mesa flies small jets for major U.S. airlines under brands such as Delta Connection and United Express. Regional jets are used by U.S. carriers to feed passengers from smaller cities to hub airports. The new venture comes as regional jet growth has peaked in the USA.
Ornstein has been eyeing the China market for two years, anticipating Chinese carriers would need regional jets to grow. He expects Mesa initially will help locate aircraft and provide maintenance, training and start-up expertise. Plans call for the new airline to fly 100 regional jets within five years. China now has about 70 regional jets flying for seven airlines.
American (AMR), Continental (CAL), Northwest and United airlines fly to China from major U.S. cities with wide-body jets. But they don't carry passengers within China, the world's most populous country. A large regional airline could help shape China's young aviation system and make in-country travel easier, said Washington-based aviation consultant Mo Garfinkle of GCW Consulting, which wrote the new airline's business plan. China "is the next natural market for RJs," Garfinkle said. "They're a game-changer."
Shenzhen Airlines President Li Kun called the joint venture "an important milestone." The new airline plans to link Beijing and a number of distant, large cities, some of which have millions of residents but no daily air service now.