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Airlines

Name: JIUYAN AIRLINES
7JetSet7 Code: JIU
Status: Operational
Region: CHINA
City: GUANGZHOU
Country: CHINA
Employees 27
Web: juneyaoair.com
Email: marketing@juneyaoairlines.com
Telephone: +88 21 2238 8888
Fax: +88 21 2235 6222
Sita:
Background
(definitions)

Formed and started operations in 2014. Start-up low cost carrier (LCC), domestic, regional & international, scheduled & charter, passenger & cargo jet airplane services.

Address:
Baiyuan District,
Guangzhou Baiyuan International Airport (CAN)
Guangzhou, China

China (People's Republic of China) was established in 1949, it covers an area of 9,560,980 sq km, its population is 1,265 million, its capital city is Beijing, and its official language is Chinese.

February 2014: (CAAC) (CAC) Central and South Regional Administration has given an approval to Juneyao Airlines (JYA) for launching a low-cost carrier (LCC) subsidiary, Jiuyan Airlines (JIU), a joint venture (JV) invested by (JYA) VP, Ji Guangping, the Elion Resources Group, and the Macrolink Group.

The new (JV) was set up with a registered capital of 600 million yuan, of which 69% was contributed by Juneyao Airlines (JYA) with 414 million yuan in cash or in kind, 15% by the Elion Resources Group with 90 million yuan, 10% by the Macrolink Group with 60 million yuan and the rest consisting of 36 million yuan invested by Ji Guangping.

As a limited liability company, Juneyao Airlines (JYA)'s new budget carrier is licensed for domestic passenger and cargo transportation businesses. Based at Guangzhou Baiyun International Airport (CAN), the carrier is set to operate A320 airplanes.

Moreover, the Guangzhou-based new entrant will initially introduce professional & technical staff from (JYA), including pilots (FC), mechanics (MT), flight dispatchers, and cabin crew (CA).

The (CAAC) has begun soliciting submissions on Jiuyan Airlines (JIU) and said that the approval will be granted unless it is informed of reasonable grounds to reconsider the plan before February 10, 2014.

Juneyao Airlines (JYA) registered in Shanghai, with approximately 500 million yuan, mainly engaged in domestic (including Hong Kong, Macau and Taiwan) and international air passenger & cargo transportation. The Elion Resources Group, registered in Ordos, Inner Mongolia, with 800 million yuan investment, is taking desert economy, clean energy, natural pharmacy and logistics as its core industries extending to new materials and cultural tourism industries as well. The Macrolink Group, registered in Beijing, with registered capital of 800 million yuan, has mainly handling investments and advisory services in chemical, mining, real estates, financial investment, etc.

China Eastern Airlines (CEA) began twice-weekly flights (Wednesdays and Saturdays) on February 1st between Shanghai Pudong (PVG) and Chiang Mai (CNX) in Thailand. The 2,670 km sector is already served by Juneyao Airlines (JYA), who operates the route six times weekly at present, though this reduces to four times weekly from mid-February. (CEA), which already serves Chiang Mai twice-daily from Kunming, will operate the route with A320s. Last year, Chiang Mai International Airport handled over five million passengers.

March 2014: Jiuyan Airlines (JIU), a low-cost carrier (LCC) based in Guangzhou, is expected to start operations in August, according to an agreement signed between (JIU) and the local government on March 27th.

Jiuyan Airlines (JIU), the (LCC) subsidiary of Shanghai based Juneyao Airlines (JYA), inked an 8 billion yuan deal with the government of Baiyun District, Guangzhou. (JIU), the start-up (LCC) carrier will be located in the Baiyuan District and make its inaugural flight in August, according to the agreement.

(JIU) plans to introduce 26 Airbus A320s or Boeing 737s in the next five years and it will launch flights to destinations in China and its neighboring countries in South Asia, Southeast Asia, and Northeast Asia.

Ji Guangpin, VP of Juneyao Airlines (JYA), Jiuyan Airlines (JIU)'s parent company, said Jiuyan Airlines (JIU) was given the green light by the Civil Aviation Administration of China (CAAC) in early February. "Currently, the route details are yet to be determined, because it will take some time before the application is approved. (JIU) plans to take delivery of three airplanes this year."

Guangzhou has a huge demand for (LCC) travel for its large population, said Ji. "We hope the (LCC) will help ease the traffic pressure in Guangzhou during the peak travel seasons."

Jiuyan Airlines (JIU) will expand its fleet size in the next five years and extend its business scope to cover international services as soon as possible, Ji said.

May 2014: A new Chinese low cost carrier (LCC), Jiuyan Airlines (JIU) has signed an agreement with Boeing (TBC) to purchase 50 airplanes worth over >$6 billion, the largest ever deal made by a private airline in China.

Jiuyan Airlines (JIU), based in Guangzhou City, China's southern business hub, got approval from the Civil Aviation Administration (CAAC) in February and is expected to begin flights in the second half of this year.

The deal was signed on May 14th. The airplanes, including Boeing's 737-800 and 737 MAX, are expected to be in operation by 2020, state-run "Xinhua" news agency reported.

The (LCC) budget carrier plans prices as low as 9 yuan/$1.46 to tap a new client source. Guangzhou is the top destination of Chinese migrant workers.

"Boeing (TBC) has sold more than >1,000 airplanes to China in the past 40 years and will sell another 1,000 in the next 6 to 7 years," said Ian Thomas, President of Boeing China. "China will need almost +6,000 more planes in the next 20 years worth more than >$780 billion," Thomas said.

Jiuyan Airlines (JIU) is jointly owned by Shanghai Juneyao Airlines Company Ltd, Elion Resources Group Limited Company, Xinhualian Holding Company Ltd and Juneyao (JYA)'s Ji Guangping with a registered capital of 600 million yuan.

November 2014: Juneyao Airlines (JYA)ís low-cost (LCC) subsidiary Jiuyan Airlines (JIU) has postponed its inaugural flight (from Guangzhou to Zhanjiang) to December 2 following approval of its routes application.

The Guangzhou-based low cost carrier (LCC) plans to open some domestic routes initially and would consider opening international routes to East Asia, Southeast Asia, Northeast Asia, South Asia, and Australia for the medium- and long-term.

Currently, (JIU) has taken delivery of two Boeing 737-800 airplanes leased from Indonesia Lion Air (MLI)ís leasing subsidiary, Transportation Partners (TP). It signed a deal with (TP) for three Boeing 737-800s.

In May, Jiuyan Airlines (JIU) placed a firm order for 50 Boeing 737-800 and 737 MAX airplanes. It plans to expand its fleet to 60 airplanes by 2020.

(JIU) has a registered capital of CNY600 million/$97.2 million. Juneyao Airlines (JYA) holds a 69% stake with a CNY414 million investment; Elion Resources Group and Macrolink Holding Company holds 15% and 10% stakes (with investments of CNY90 million and CNY60 million), respectively. (JYA) VP, Ji Guangping holds the remaining 6% stake with a CNY36 million investment.

Besides cash support, Juneyao Airlines (JYA) is also expected to provide some aviation professionals to Jiuyan Airlines (JIU).

Fleet:
(definitions)

Click below for photos:
JIU-A320-2014-03

April 2016:

2 +1 ORDER 737-800 (CFM56-7B), TRANSPORTATION PARTNERS (TP) LSD.

50 ORDERS (2020-02) 737-800 AND 737 MAX:

Management:
(definitions)

JI GUANGPING, VP JUNEYAO AIRLINES (JYA) AND CHIEF EXECUTIVE OFFICER (CEO) JIUYAN AIRLINES (JIU).
Ji Guangping holds a 6% stake in Jiuyan Airlines (JIU) with a CNY36 million investment.

 
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