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Okay Airways to resume passenger services

By Lu Haoting (chinadaily.com.cn)
Updated: 2009-01-15 16:14

Okay Airways, China's first private airline, said it had sent an application to the Civil Aviation Administration of China (CAAC) to resume passenger services.

Juneyao Group, the airline's largest shareholder, has reached consensus with other shareholders to "put aside disputes" in order to resume flights as soon as possible, National Business Daily reported today.

The airline intends to resume services before the Spring Festival, the Shanghai-based newspaper quoted an unnamed source from the airline as saying.

Okay Airways halted passenger services on Dec 6, 2008 due to an internal management dispute. Juneyao Group filed an application with the CAAC in November seeking suspension of passenger services on grounds that the management of the company was "chaotic" and could threaten flight safety. There has been lots of disagreement between Juneyao and other shareholders as well as the management team since the Zhejiang-based company became Okay Airway's largest shareholder in 2006.

The Tianjin-based airline suffered nearly 100 million yuan ($14.62 million) losses during the past month. Analysts said the airline would need to invest 100 million to 200 million yuan to resume services.