East Meets West In A Booming Chinese Aviation Market

Mesa announced last week it has signed a joint venture agreement with China's Shenzhen Airlines to create a regional airline serving the Chinese market. The partnership has yet to name the carrier to be.

The new airline will initially operate 50-seat regional jets on domestic routes serving Shenzhen, Beijing, Chongqing, Xiamen, Nanjing, Kunming, Dalian, Shenyang, Xian, Zhengzhou and Nanning. Scheduled service is expected within 12 months.

Officials expect to have 20 50-seat regional jets in service prior to the Beijing Olympic games in 2008, growing to more than 100 planes within five years, comprising a mix of 50, 70 and 90-seat regional aircraft.

Said Mesa Air Group Chairman and CEO, Jonathan Ornstein, "We are delighted and privileged to be the first US passenger airline to form a strategic alliance to create a new airline to operate in The People's Republic of China. We at Mesa look forward to making a positive contribution to the development of the regional airline industry in China and to forging a strong, long-term relationship with our friends at Shenzhen Airlines."

To get the new carrier off the ground Mesa will provide significant technical capability, including pilot, maintenance and operations support and training, as well as the sourcing of aircraft.

"We see this new partnership as a great opportunity to continue growing our business and further diversify our airline operations," added Ornstein. "With a population of more than 1.2 billion people, China is the world's fastest growing air travel market. There are currently 134 airports with plans to grow that number to 200 over the next ten years. Furthermore, 40 of the 50 largest airports have expansion projects underway or planned."

Shenzhen Airlines President Li Kun said, "Today represents an important milestone for our company as through this joint venture we extend our service to many smaller communities throughout the country. Mesa's experience and reputation as a leader in the regional airline industry make it the perfect choice to partner with us in launching this new regional airline."

Mesa currently operates 199 aircraft with over 1,300 daily system departures to 173 cities, 43 states, Canada, Mexico and the Bahamas. Mesa operates as America West Express, Delta Connection, US Airways Express and United Express under contractual agreement with America West, Delta Air Lines, US Airways and United Airlines, respectively, and independently as Mesa Airlines.

In June this year Mesa launched an inter-island Hawaiian service called go! The carrier links Honolulu to the neighbor island airports of Hilo, Kahului, Kona, and Lihue.

With 5,000 employees, Mesa is a member of the Regional Airline Association and Regional Aviation Partners. The Company was named 2005 Regional Airline of the Year by Air Transport World Magazine.

Shenzhen Airlines operates a fleet of 45 new-generation A320 and B737 aircraft on 100 routes within mainland China and South East Asia. The company has carried nearly 5.3 million passengers this year, employs 6300 people, and is headquartered in the metropolis of Shenzhen, in southern China's Guangdong Province.

FMI: www.shenzhenair.com, www.mesa-air.com