Analysis: According to Xinhua News Agency in Tianjin, due to the airport's refusal to refuel the aircraft and provide aviation material spare parts, passengers were unable to normally check in. On a certain day, a special line was connected. Okai Airlines, the first privately-owned airline in mainland China, was forced to suspend nearly a few routes ahead of schedule.
According to news from the Operation Management Department of Okai Airlines, on that day, more than passengers were stranded at multiple airports across the country. Over frontline employees were arranged to assist passengers with ticket endorsements, rescheduling, and refunds. The main operating base of Okai Airlines, Tianjin Binhai International Airport, accommodated over stranded passengers. Currently, there is no large-scale passenger congestion at Tianjin Airport.
Will the domino effect hit private airlines? Prior to Okai Airlines suspending its flights, another private airline, Eagle Airlines, had been issued a "yellow card" by Sichuan Airport Group. Sichuan Airport Group stated that from January 200X to December 20XX, Eagle Airlines owed over ten million yuan in landing service fees and ground service agency fees.
Okai Airlines, with its main operating base at Tianjin Binhai International Airport, was the first domestic airline to introduce and operate the domestically produced Xinzhous aircraft in bulk. It currently owns aircraft through various means and has opened multiple routes such as Tianjin to Changsha, Hefei, Kunming, Haikou, etc. This year, it is expected to transport around ten thousand passengers, accounting for over / strong of Tianjin Binhai International Airport’s passenger volume.
Additionally, Zhang Lei, spokesperson for Spring Airlines, told reporters that since the third quarter of this year, rising costs and declining demand have led to losses. Since October, the once proud seat occupancy rate of Spring Airlines has also declined. Although the Spring Festival travel rush may bring an increase in seat occupancy rates, this video was uploaded to video-sharing websites, but the Spring Festival travel rush period is very short, making significant improvement difficult.
The direct cause of Okai Airlines' "suspension" was Wang Junjin, legal representative of Shanghai Junyao Group, who claimed that as the legal representative of Okai Airlines, he was unable to exercise the responsibilities of the primary safety officer and could not guarantee operational safety. Thus, he submitted an application to the North China Regional Administration of Civil Aviation to suspend Okai Airlines’ passenger business. On a certain day in the month, Okai Airlines received the "Notice Regarding Issues Concerning the Suspension of All Passenger Routes of Okai Airlines" from the North China Regional Administration of Civil Aviation.
At 6 PM on a day in the month, Okai Airlines Co., Ltd. officially received the "suspension order" from the Civil Aviation Administration and would cease operations on a specific day. After the media announced that Okai Airlines would suspend passenger flights on a certain day, some airports became concerned about whether the company could afford the fuel costs and thus requested cash payment, said Yang Jianhua; otherwise, they would not refuel the planes. Starting from a specific date, some airports successively stopped refueling Okai Airlines’ planes.
An aviation insider told reporters that after this industry crisis, some private airlines might exit the market. This mainly depends on the coordination of their various business sectors and also tests their management capabilities. According to Xinhua News Agency, Okai Airlines became the first privately-owned airline in mainland China to commercially operate in 2005, jointly funded by Beijing Okai Transportation Energy Investment Co., Ltd., Dadi Bridge Investment (Beijing) Co., Ltd., and individual investors. Currently, Shanghai Junyao Group holds % of Beijing Okai Transportation Energy Investment Company's shares, which in turn owns % of Okai Airlines' shares, making Junyao Group the largest shareholder of Okai Airlines.
Due to unpaid airport fees, starting from a day in the month, Sichuan Airport Group ceased providing VIP lounges and first-class lounge services to Eagle Airlines. If the arrears are not repaid within a month, Sichuan Airport Group will terminate office lease services to Eagle Airlines, significantly affecting its normal operations based in Chengdu.
According to Tianjin Airport, all passenger routes of Okai Airlines have been suspended. The airline has properly settled affected passengers through endorsements and rescheduling, and transferred part of the passengers to Capital International Airport when necessary.
Significant fluctuations in oil prices, declining seat occupancy rates, natural disasters, and fierce market competition have caused the aviation industry to face a crisis this year. As the year-end approaches, under severe economic conditions, does the suspension of Okai Airlines mark the beginning of the retreat of private airlines from the market?
The first privately-owned airline in mainland China has suspended operations. Airports refused to refuel the airplanes, did not provide aviation material spare parts, and passengers were unable to normally check in.