Troubled Chinese carrier JoyAir (JR, Xi'an Xianyang) has continued its flight suspensions beyond the end of April. The airline axed all flights just ahead of the five-day May Day holiday period but hoped for a restart soon afterwards. As reported by the South China Morning Post, it has not yet reactivated.
JoyAir operates scheduled flights to seven primarily second- and third-tier Chinese airports, Beihai, Changsha Huanghua, Dalian, Harbin, Weihai, Xi'an Xianyang, and Yantai Penglai International, with a fleet of three B737-800s and twenty-two MA-60s.
The airline is ultimately controlled by the Chinese government via a 65% shareholding held by Xi'an State-Owned Assets Supervision and Administration Commission. However, a series of financial losses and legal wrangles have plagued the carrier.
The newspaper cites an analyst who says China's rollout of high-speed rail is negatively impacting JoyAir and other regional airlines. The analyst also notes the high costs of operating to smaller airports and the thinner passenger volumes. JoyAir was founded specifically to operate the Chinese-built MA-60 but that 60-passenger aircraft is "awkwardly small and doesn't fit most route economics." It is also disproportionately expensive to maintain.
Late last year, ch-aviation reported that JoyAir was behind on its payroll and pension plan obligations. Its payroll issues date back to 2022. The airline has faced around 50 lawsuits from current and former employees owed money. Chinese courts have also frozen company assets and placed consumption restrictions on the airline's legal representative.
JoyAir's website contains no information about the flight suspensions, and the company has not issued any statements. However, its booking portal shows no availability on any routes over the remainder of the year.
