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	<title>The Bohtong Times &#187; Okay Airways</title>
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		<title>China&#8217;s 1st Private Airline Suspends Flights Early</title>
		<link>http://bohtong.com/chinas-1st-private-airline-suspends-flights-early/</link>
		<comments>http://bohtong.com/chinas-1st-private-airline-suspends-flights-early/#comments</comments>
		<pubDate>Sat, 06 Dec 2008 16:54:21 +0000</pubDate>
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				<category><![CDATA[Airline News]]></category>
		<category><![CDATA[Okay Airways]]></category>

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		<description><![CDATA[China&#8217;s first private airline began a one-month suspension of passenger service because of financial and management woes Saturday, 10 days ahead of schedule, state media reported.
Okay Airways has been locked in a messy dispute with its controlling shareholder. News reports this week said the Civil Aviation Administration of China ordered the flight suspension at the [...]]]></description>
			<content:encoded><![CDATA[<p>China&#8217;s first private airline began a one-month suspension of passenger service because of financial and management woes Saturday, 10 days ahead of schedule, state media reported.</p>
<p>Okay Airways has been locked in a messy dispute with its controlling shareholder. News reports this week said the Civil Aviation Administration of China ordered the flight suspension at the request of the shareholder, Shanghai-based Junyao Group Co.</p>
<p>A Junyao spokesman told the official Xinhua News Agency that Okay Airways suspended passenger service Saturday. An airline spokesman had said Thursday that the one-month suspension would start Dec. 15.</p>
<p>Xinhua did not explain why the suspension started earlier than expected. Officials at the airline could not be reached for comment Saturday.</p>
<p>Several hundred passengers stranded at the airline&#8217;s hub in the northeastern city of Tianjin had to be transferred to other flights, Xinhua said.</p>
<p>The economic slowdown has hurt all of China&#8217;s airlines, but the country&#8217;s handful of private carriers cannot count on the kind of huge government bailouts that several state-run carriers are now seeking.</p>
<p>The loss-making Okay Airways is also caught in a dispute with Junyao about how the airline should be run, Okay Airways spokesman Li Wei said in a phone interview Thursday. Staff at Junyao refused to comment.</p>
<p>Okay Airways became China&#8217;s first private carrier in 2005. Its 11 planes fly more than 20 domestic passenger routes, and its cargo operations are a local partner of Fedex Corp. The cargo operations are expected to continue.</p>
<p>The airline and Junyao agreed in March 2006 to share personnel, routes, marketing and managerial expertise as they struggled for a footing in China&#8217;s intensively competitive air transport market.</p>
<p>But relations between the two are troubled.</p>
<p>Junyao recently dismissed Okay&#8217;s president, Liu Jieyin, Xinhua reported Thursday, citing Wang Junjin, who is chairman of both Junyao and Okay.</p>
<p>It said that Wang had promised not to cut jobs or reduce salaries during the one-month flight suspension.</p>
<p>The report said flights were due to resume in mid-January, just ahead of the Lunar New Year peak travel period.</p>
<p>It wasn&#8217;t clear Saturday how the early suspension of flights would affect that plan.</p>
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