HK budget carrier to fly to mainland
(China Daily/Hong Kong Edition)
Updated: 2005-01-21 10:11

CR Airways, the first Hong Kong-based budget regional carrier, announced yesterday it would launch its maiden flight to Nanning tomorrow, in its first drive to gain a slice in the fast growing mainland market.

"We see a highly optimistic prospect in flights to mainland's second tier cities with China's accession to the World Trade Organization and the (central government's) 'Go West' development plan," Robert Ip, chairman of CR Airways, said yesterday.

It is the first time for a Hong Kong based airline to operate low cost flights between the territory and the capital city of South China's Guangxi Zhuang Autonomous Region.

Ip said the carrier has chosen Nanning as its first mainland destination because it is the venue for the annual ASEAN Expo.

He anticipated the airline can break even when the average passenger loading rate reaches 60 per cent.

The carrier will fly between Hong Kong and Nanning three times a week, with a round-trip ticket to be sold at HK$2,000-HK$2,600.

It plans to launch flights to Jinan in Shandong Province next month or in March, and the Wenzhou route in Zhejiang Province in April, said Ip.

CR Airways, solely owned by Robert Ip, operates two Bombardier CRJ-200 aircraft, each with 50 seats. The company, which has invested over US$30 million in expanding the flight business, plans to buy four more this year.

It is seeking approval from Hong Kong's Air Transport Licensing Authority (ATLA) to fly to 10 more cities on the mainland, including Guilin, Haikou, Changsha, Tianjin, Sanya, Wuhan, Huangzhou, Kunming, Nanjing and Chongqing.

The carrier was formerly established as an operator of short-haul helicopter services between Hong Kong and the Pearl River Delta region in 2001.

Having gained the extension to operate fixed wing aircraft since June 2003, the airline offers schedule flights to Laoag in the Philippines and chartered flights to Siem Reap in Cambodia, Phuket in Thailand, Langkawi in Malaysia and Danang in Viet Nam.

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