New Air Services Mean More Options for Firms

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 ◆ New Air Services Mean More Options for Firms

China's first long-distance wide-body charter service jet, the Challenger 604, introduced by Shandong Airlines recently, made its maiden flight from Beijing to Jinan, capital of East China's Shandong Province.

The voyage elated Bai Weisan, chairman of Shandong Rainbow Business Aircraft Co, a subsidiary of Shandong Airlines. He said China-based business people, either foreign or Chinese, can enjoy charter services offered by the airlines.

Bai's company signed a contract with the Bombardier Company of Canada last year to buy four Challenger 604s. Previously, they only had four CRJ-200 airplanes.

"The charter service is still young in China," Bai said.

While charter services are popular in developed countries, only Bai's company and the Deer Jet Co under Hainan Airlines provides such services.

"More than 90 per cent of the world's top 500 companies use chartered airplanes to improve business efficiency," said Niu Li, an economist with the State Information Centre.

Now that China is a member of the World Trade Organization, the Chinese economy will gradually integrate itself into the global economy, including the charter airline business, officials said.

Almost all the world's top 500 companies have set up subsidiaries in China, which promises a big business potential for charter services, Niu said.

Domestic companies, which have become more aware of foreign competition, are also considering using chartered airplanes to improve efficiency.

"This means the demand for chartered airplanes will begin to increase in the coming years," he said.

The business is likely to generate about 60 billion yuan (US$7.2 billion) a year in the coming years, he said.