A regional airline in western China, entangled in multiple labour disputes and a debt crisis, has suspended all flights – with some pilots forced to make a living by delivering food.
Backed by the Shaanxi provincial government, Joy Air operates a fleet of Chinese-made turboprop-powered MA60 aircraft along domestic routes that connect second- and third-tier cities – particularly in western and central China – and regional hubs like Xi’an.
The main issue behind the suspension is a lack of profitable routes, said Jason Li Hanming, a United States-based analyst.
“The internal routes within Shaanxi are gradually being replaced by the extending high speed railway network for a cheaper, more affordable price,” Li said. “That is constantly impeding Joy Air from building a healthy cash flow and eventually impacts the company negatively.”
