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Private Airlines Ready to Fly

The Okay Airways Co., Ltd. is expected to be China's first private airline to start flying by the end of this year, while two others are also ready to fly, according to the Civil Aviation Administration of China (CAAC).

The company is undergoing the last step of examination, which is expected to end by November 20. If approved, it will become China's first private airline to take off.

Okay Airways plans to introduce six Boeing 737 aircraft and expects to set off by the end of this year as scheduled. Meanwhile, China's other two private airlines, the United Eagle Airlines and the Air Spring are speeding up their efforts to fly, CAAC sources said.

Among the three private airlines approved by the CAAC, Okay Airways has the highest registered capital of 300 million yuan (US$36.5 million), but it still lacks the ability to afford airliners usually costing tens of millions US dollars. The airline is likely to rent or finance the six aircraft.

Headquartered in Beijing, Okay Airways will be based in the Tianjin Binhai International Airport, focusing on domestic air cargo and express services, passenger charter services and ground distribution services.

Okay Airways is still seeking experienced staff. So far, it has more than 30 pilots, including pilots from overseas.

Based in southwest China's Sichuan Province, the United Eagle Airlines will launch its first flight at the beginning of next year while Air Spring, based in the Shanghai Hongqiao Airport, with a registered capital of 100 million yuan (US$12 million) will introduce short- and mid-range aircraft from America and Europe.

The CAAC gave the green light for the three private airlines in May, an initial step toward breaking the government's monopoly on passenger air transport.

(Xinhua News Agency October 17, 2004)

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