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Small airlines brace challenge
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IN the wake of the announcement of mergers that would create three dominating airlines, the fledgling Shenzhen Airlines joined five other small operators to form an alliance to brace looming challenges.
China's 10 biggest airlines have unveiled a plan to form three major groups this month, leaving their small and medium-sized counterparts rushing to join forces in order to survive the market invasion by the three “oligopolies".
Shenzhen Airlines, Shanghai Airlines, Shandong Airlines, Wuhan Airlines, Sichuan Air and China Postal Airlines have teamed up to form the China Sky Aviation Enterprises Group, Shenzhen Daily learned yesterday.
The group will co-ordinate passenger and airfreight services among the six carriers and develop joint route operations.
With combined assets of about 20 billion yuan (US$2.4 billion), China Sky has a fleet of nearly 100 aircraft serving more than 500 routes.
The six carriers will not merge assets and will continue to operate independently.
But industrial analysts pointed out that under the loose alliance, even the six carriers will have to compete against each other in the hitherto tightly regulated, yet highly competitive market.
Established in 1992, Shenzhen Airlines has a fleet of only 11 Boeing 737's flying over 30 routes.(SD News)
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