Okay Airways shifts focus to regional market

After suffering from continuous setbacks on its trunk routes, Tianjin-based Okay Airways will shift its focus to the regional market when it takes delivery of its first MA60 turboprop this month, according to Chairman Liu Jieyin.

Its second MA60 is expected to be introduced in April. Last summer, Okay signed an aircraft lease agreement with AVIC I for 10 MA60s (ATWOnline, July 6, 2007). It currently operates five 737s to 22 domestic destinations.

Okay will begin by trying to capture regional fliers in northeastern and northern China before expanding its catchment area to the northwest and central part of the country. Liu said it has conducted market research for airports in Harbin, Shenyang, Tianjin and Shijiazhuang.

"There are twelve empty airports around Harbin, such as Heihe Airport, Mudanjiang Airport, etc., whose geographical distances are between 300 and 600 km., which are the airports we are going to operate in," he explained. Okay is applying to CAAC for six new regional routes, which he noted will connect with its existing trunk network.

The Chinese regional market remains in its "breeding phase," as the number of regional aircraft operated by Chinese airlines is just 77 and three main regional carriers--China Express Air, Grand Xinhua Express and Kunpeng Airlines--operate at a loss.