With the nation easing restrictions on private investment in airlines since early last year, the General Administration of Civil Aviation (CAAC) is now preparing to issue licenses to the country's first private airlines. The Oriental Morning Post reported on Tuesday that Shanghai Spring International Airlines (SSIA), funded by Shanghai Spring International Travel Service, will start service this June.

The top posts for flight and maintenance operations have been filled, although the company is still having trouble recruiting experienced pilots. Nevertheless, the parent company is confident that flights will begin as scheduled.

SSIA ambitiously plans to own as many as 400 aircraft by 2020. Three A320s leased from Airbus will go into service as soon as they arrive in Shanghai.

The airline is targeting the travel and tourism sector, and its routes will mainly be to such sightseeing and resort destinations as Kunming, Guilin, Beijing and Hainan. Routes and schedules are currently pending approval by CAAC.

However, pilot recruitment has proved a headache since the company was founded last June. It has declared that it intends to hire experienced pilots "at all costs."

Two China Eastern Airlines captains have declared their intention to move to SSIA, the Post quoted an insider as saying. A Jiangsu Province labor arbitrator recently ordered the two to pay China Eastern 338,000 yuan (US$40,000) and 388,000 yuan (US$46,000), respectively, if they resign to join the new airline. Both reportedly plan to make the move when their new employer pays the compensation.

The company has ordered six planes, and to keep them all flying it will need a total of 16 cockpit crew.

Shanghai Spring International Travel Service began running charter flight services eight years ago. When its subsidiary goes into operation, it will be able to provide more flexible schedules for its customers, particularly in peak seasons.

SSIA, like the three other private airlines expected to take to the skies this year, has vowed to keep operating costs low in order to offer low-cost services to its customers.

The other three private carriers are Okay Airways, based in Tianjin; Eagle Airlines of Chengdu; and Huaxia Airlines in Gansu Province.

(China.org.cn by Wang Zhiyong, February 24, 2005)