China United Airlines (KN, Beijing Daxing International) will complete its transition to a budget operation this month with ultra-low cost flights to go on sale from March 29 onwards. The carrier announced the change in business model back in July 2014 with plans to establish bases at Beijing's Nanyuan Airport, Foshan in Guangdong, and an as-yet-unnamed hub in Western China.
Formed as a joint venture between Shanghai Airlines (FM, Shanghai Hongqiao) and China Aviation Supplies Import and Export Group Corporation (CASGC) in 2004, China United became a China Eastern Airlines (MU, Shanghai Hongqiao) subsidiary when Shanghai Airlines was incorporated into the former in 2009.
It currently operates three A319-100s, ten B737-700s and twenty-one B737-800s on flights to 51 destinations scattered throughout China.
Since Beijing relaxed laws governing air fares in 2013, the Civil Aviation Administration of China (CAAC) has seen a surge in applications by established carriers, as well as start-ups, eager to enter the budget market. Thus far, China United Airlines, West Air (China) (PN, Chongqing), China Express Airlines (G5, Chongqing), Capital Airlines (China) (JD, Beijing Daxing International), Chengdu Airlines (EU, Chengdu Shuangliu), and JoyAir (JR, Xi'an Xianyang) have all applied for permission to transform their operations into Low Cost Carriers.
