Regional airlines sputter with mishaps

Jet producer Bombardier Thursday told the Global Times that the Huaxia Airlines accident in Guiyang, Guizhou Province Saturday will not hamper the future of jet sales in China.

"The CRJ series is our flagship product, and the accident will not impact sales in China," said Xiao Xiao from the communications department with Bombardier China, adding there are five airlines in Greater China operating aircraft made by the company.

A Huaxia jet's wings scraped the ground while landing Saturday. The incident was followed by a suspended order for all flights of the carrier by the Civil Aviation Administration of China.

Huaxia Airlines is the first private aviation company targeting regional transport, and the only independent regional aviation carrier in China. Its fleet is mainly CRJ-200s produced by Canada-headquartered Bombardier.

The accident came less than one week after a Brazilian-made Henan Airlines regional jet crashed in heavy fog in the northeastern city of Yichun last Tuesday, killing 42 people and leaving 54 survivors. It was China's first major air disaster since 2004.

Regional aircraft have between 50 and 110 seats and can cover distances of 600 to 1,200 kilometers.

Although Chen Huaiyu, deputy general manager of Huaxia, told the Global Times Thursday that the suspension will not impact the whole year's operations, experts still believe that the nation's regional aviation market is still in need of close regulation.

"The regional aviation market is still not mature," said Wang Jian, secretary general of China Civil Airports Association, adding that there is unbalanced regional development.

"The big carriers always prefer big cities because they get more passengers," said Wang. "The income difference between the big and small cities can be tens of thousands yuan."

"The market demand for the regional aviation is still weak, and the cost flying between small cities is higher," echoed Lin Zhijie, an industry analyst from Singapore-based Kent Ridge Consulting. "Most regional airports are suffering losses."

According to a report from the Economic Information Daily released Monday, five airports in Hunan Province have been put into use as of July, four of which have received subsidies from the local government. In 2009, Zhijiang Airport lost 13 million yuan ($1.90 million).

The coming high-speed rail network, which is scheduled to cover 58 percent of the civil aviation market by 2012, will make the regional aviation business more difficult.

Source: Global Times