China's budget airline market eyed by Singapore's A-Sonic Aerospace

Airline Industry Information, Sept 14, 2004

AIRLINE INDUSTRY INFORMATION-(C)1997-2004 M2 COMMUNICATIONS LTD

Singapore-based A-Sonic Aerospace along with a Chinese travel agent and a Hong Kong-based finance firm have applied for permission to launch a low-budget airline in China.

News of the plan saw A-Sonic's share price rise by 10%, such is the potential of the Chinese air travel market which is still largely untapped due to strict regulations. Three Chinese firms have gained permission to launch low-cost carriers in China, from Shanghai, Chengdu and Tianjin.

A spokesperson for A-Sonic said that research showed that China is expected to experience the biggest growth in air travel in the world over the next 20 years. The company hopes to launch the airline from China's third busiest airport, Guangdong, in late 2005, reports Reuters.

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