Private in China Pt2: Auspicious Juneyao

Juneyao Airlines was formed in 2005 as one of the first batch of private airlines allowed by the CAAC. It is based in the Changning District, Shanghai and operates primarily from both of Shanghai's airports - Pudong and Hongqiao. The airline is wholly owned by the Juneyao group whose name literally translates as "Auspicious" in English. Unlike its Shanghai based competitor Spring Airlines Juneyao has positioned itself as a full service 'boutique' airline but unlike many of the original startups this has not hindered its success.

Juneyao's success is to a degree based upon operating from the high income city of Shanghai which has allowed it to tap into demand from the city's relatively wealthy population. This is especially true upon international routes of which the first (non Hong Kong or Macau) service began in November 2012 with a Phuket service. The airline's growth has been steady with a fleet of 29 A320s in March 2013 growing to 35 A320s and 7 A321s by early 2015.

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The airline's A320s are fitted with a comfortable 158 seat arrangement including 150 economy and 8 first-class seats. This comfortable arrangement and a lower utilisation rate means that though in 2012 it was comparitively similar in size to Spring it carried only about half the passengers (5.3 million to 9.1 million). Despite this Juneyao is the third largest carrier at Shanghai Pudong and sixth largest at Shanghai Hongqiao airports. Service levels are high with adjustable headrests, more legroom, hot meals, snacks and beverages all complimentary.

In recent years Juneyao has been upsizing its fleet having retired a pair of A319s in February 2013 and taken into service its first A321 from July. The first aircraft, B-9957, wore the standard colours but B-1808, the second A321 to arrive and the first to be equipped with sharklets, plus the remaining two have been painted in a vibrant burgundy scheme with flowing golden ribbons.

Juneyao has been consistently profitable and grown into one of the largest private airlines in China operating to 32 destinations from both Shanghai airports. It has also diversified its brand recently through its new low cost start-up Jiu Yuan Airlines / 9 Air which has begun operations from China Southern's Guangzhou hub. The mainline airline is looking for partners through which it can interline or codeshare to assist its organic growth. Certainly it appears Juneyao is well placed to prosper in the ever changing Chinese aviation environment.