Friday, 21 September 2018

MONGOLIA: Genghis Khan Airlines To Commence Flights 2019

Genghis Khan Airlines a new start-up in the Inner Mongolia region of China. However, unlike some airline start-ups, which start seamlessly, Genghis Khan has had a few problems along its route to the sky.

Genghis Khan Airlines was originally marketed as Tianjiao airlines. However, that name was dropped for a more iconic name, which is based on the famed historic Mongolian figure Genghis Khan.

The airline originally planned to start operations with Bombardier CRJ-900 aircraft in March, but it was unable to secure production slots with Bombardier.

Then, in May, the airline was said to be negotiating with Embraer for E190 aircraft to launch operations. The airline was not able to secure production slots or maintenance contracting with Embraer either.

Finally, the airline announced a large order for up to 50 Comac ARJ21 aircraft, including 25 firm orders and options for an additional 25.

The airline plans to receive its first two aircraft in December 2018, with the remaining 23 in the next five years.

Genghis Khan Airlines has also entered into an agreement with Comac in order to establish a flight school for its pilots as well as a maintenance and overhaul facility for the airline’s operations.

The airline’s investors are mostly the Inner Mongolian government, which has invested USD$438 million US dollars into the airline.

The Inner Mongolian government is hoping to increase tourism to the region, which has increased already 12% over 2017, to 202,600 tourists in the first half of 2018.

The airline will be run by a mix of executives who have left various other Chinese airlines, such as Air China, 9 Air, China Southern Airlines, and Qingdao Airlines.

The former chairman of Qingdao Airlines will be in charge of preparing the airline for its commercial operations, and the chairman of the airline will be Hao Yutao.

Genghis Khan Airlines will be the second airline to operate the Comac ARJ21 after the Comac-owned Chengdu Airlines.

Genghis Khan will also be the second-largest operator of the ARJ21 should they exercise their options; Genghis Khan Airlines will follow Henan Airlines and tie with Joy Air.

Should the new carrier choose to do so, the 25 additional aircraft will be delivered 3 years after the original 25 aircraft.

After starting operations, Genghis Khan Airlines plans to launch into the international market once they have received their 25th aircraft.

The airline plans to be operating to 40 destinations with 25 aircraft in 5 years, and then to 80 destinations with 50 aircraft in 8 years. While these plans are ambitious, the airline’s wide investor pool will be able to help finance their expansion plans.

Genghis Khan Airlines yet released its plans for seating configurations on the ARJ21. However, the aircraft is typically equipped with between 78 and 90 seats depending on the number of classes, allowing for some flexibility on the airline’s part.

The aircraft also has a range of up to 3,700 km, which will allow for great flexibility when the airline is considering new routes.

The airline also plans to operate extensive flights within Inner Mongolia from its base at the capital of Hohhot, as there are 20 transport-class airports within the region prepared for the airline to serve them.

Genghis Khan Airlines says that it has completed acquiring the personnel required, including executives, maintenance personnel, pilots, cabin crew, and more.

Genghis Khan airlines look like it has a good chance at being successful in an under served region of China, and although their plans may be ambitious, they have a strong team behind the plans to help see them through.

The Civil Aviation Administration of China (CAAC) has approved Genghis Khan Airlines to start operations. The brand-new carrier may commence the flight operations as early as early 2019.

Genghis Khan Airlines was established in 2015 and selected Hohhot Airport as their main hub. Hohhot is the capital city of Inner Mongolia Autonomous Region of China, which is located at northwest of Beijing and is just a short 90-minute flight away.

Inner Mongolia has an area of 1.183 million kilometers squared. In recent years, an improvement in airport facilities has not attracted carriers as originally planned.

According to the company proposal, the airline will use Chinese-manufactured Comac ARJ21 aircraft and hope to operate a fleet of 25 the type.

It plans to fly 40 destinations and 60 routes within the first five years. In the next eight years, a fleet of 50 aircraft are expected and the airline has set a goal to reach 80 destinations and 150 routes, the route map will be covering the country’s major cities, Mongolia and Russia.

Inner Mongolia has 28 civil airports, the most airports in a region of China. In 2017, 58 airlines served across the region, reaching 116 destinations and 426 routes, including 37 international route and 21 destinations.

In the first seven months of 2018, the total passengers volume of the airports in Inner Mongolia was 14.28 million, an increase of 17.6 percent over the same period last year.

Expecting rapid economic growth, the number of airports will 50 by 2030. At that point, Hohhot will become a major hub for the region.The airline has already employed maintenance personal, safety regulators, safety management teams and customer services agents.

Hao Yutao, the chairman of Genghis Khan, said, the airline has reached an agreement with Commercial Aircraft Cooperation Of China Ltd (COMAC). The company is going to setup Aero institute, aircraft maintenance center and training center in the region and support surrounding airports.

As a result of the rapid economic growth in China, the airline network of Inner Mongolia can’t meet popular demand. Genghis Khan Airlines commencing service may solve the region’s problems.

The airline has to face competition with the high speed train in the long run, meaning the future is cautiously optimistic.


Tourism Observer

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