OK Air may resume flights in two weeks
China’s first private airline, OK Air, is expected to resume flights on January 15. The company has lost about a hundred million yuan since it suspended services on December 6.
The company has now been working on an application to launch operations again and plans to put forward it next week.
According to a source in OK Air, four minority shareholders of the company have decided to leave the dissension later to resume flights as soon as possible.
OK Air suspended passenger services on December 6, 10 days ahead of schedule, as a result of financial problems and an internal management dispute.
During this time, the company made losses of up to one hundred million yuan, including passenger services of 2 million to 3 million yuan per day and cargo services of 20 million per month. Moreover, OK Air was confronted with the invisible losses in brand image and credit standing.
Also, OK Air could not maintain its relationship with FedEx Express as cooperation with airports and fuel providers discontinued due to the suspension.
OK Air and FedEx Express signed a five-year cooperation agreement in 2006. The tie-up with FedEx, one of the four express giants, has helped OK Air stay afloat despite the overall industry not doing that great.
“The loss of losing FedEx is extremely painful,” a senior manager at OK Air said.
Tags: Airport, flights, Fuel