Tibet Air prepares for summer 2011 launch

Tibet Air revealed more details of its ownership structure and operational plans, including that it will launch next summer.

The carrier was approved by CAAC in March (ATW Daily News, March 12). It has a registered capital of CNY280 million ($41.3 million) comprising  CNY142.8 million from Tibet Autonomous Region Investment Co., which holds a 51% stake; CNY109.2 million from Sanli Investment Co., which holds 39%, and CNY28 million from Tibet Ruiyi Investment Co., which holds 10%.

Tibet Air plans to launch with three aircraft and is believed to be choosing between A319s and 737-700s. The new entity plans to operate regional routes to Nyingchi, Chamdo and Ali initially and eventually hopes to operate international routes. It is expected to expand its fleet to 20 aircraft in five years. 

Currently, Air China has a 55%-60% share of the Tibet market and Sichuan Airlines holds about 30%. Other carriers including China Southern Airlines and China Eastern Airlines control 10%-15%.