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Spring's New Era
01 May 2008
Can the low-cost carrier model work in China? Yong Qiu finds out from Wang Zhenghua, chairman of Spring Airlines, the country's only LCC
Launched in July 2005, Spring Airlines, China's only low-cost airline, has been operating for nearly three years with audited profits. The company's success story over the first two years has been well publicized, but little is known about the company's development plan and the management's view on the future.
A series of unfortunate events, namely the liquidation of Oasis Hong Kong, the demise of Skybus and an unprecedented high oil price, have sparked a global concern about the future of start-up low-cost airlines. However, Wang Zhenghua, chairman of Spring Airlines, is optimistic.
Airfinance Journal: We have learned that Spring Airlines recorded a profit of more than Rmb10 million [$1.4 million] per aircraft over the first two years. What could be the result for the third year, and what was the key contributing factor for your past success?
Zhenghua Wang: We recorded a profit of Rmb113.34 million for the second...
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