China's first three private airlines will be ready for take-off during the first half of this year at the earliest.

A reliable source said the three companies -- Ao'kai, United Eagle and Chunqiu -- will unable to take off as they had previously planned during the Chinese Lunar New Year which falls on February 9.

They may take off during the May Day holidays at the earliest, the source said, without elaborating.

This contradicted a media report last week, which said the three private companies would become operational during next month's Lunar New Year holidy.

But the three companies refused to either confirm or deny these reports.

An official with Shanghai-based Chunqiu Airlines said her company was still preparing for a final take-off in accordance with the company's business plan.

"We are trying to enter services before the end of this year," she said, without giving further details.

An official with the Beijing-based Ao'kai Airlines said the company had not set a timetable, although it had taken an important step forward in terms of preparation.

"We are still in talks with our partners on the leasing of aircraft," he said.

He expressed the hope his company could be able to fly during the first half of this year.

United Eagle Airlines headquartered in Chengdu, the capital of Southwest China's Sichuan Province, said preparatory work was in full swing and at least three planes are expected to be ready before the end of this month.

Hu Wenbin, a spokesman for the airline, said: "We will kick off the business when the General Administration of Civil Aviation of China (CAAC) gives us the nod."

The CAAC is conducting an overall assessment of the company. When United Eagle is able to take to the skies depends primarily on when the CAAC completes its assessment, Hu said.

The airline signed a contract last month with the Southwest Branch of China Aviation Oil Holdings Corporation, which will provide 350,000 tons of aviation oil to the airline.

The CAAC approved the company's preparation for normal operations starting on last February 10.

The airline will focus on passenger transport, Hu said, but refused to give details about the planned air routes, the type of the aircraft or ticket prices.

Ao'kai Airlines and Chunqiu Airlines were approved to start their preparations starting on last May 26.

Ao'kai will mainly engage in the logistics businesses, domestic cargo transportation, and chartered flights from Tianjin, while Chunqiu will mainly be engaged in chartered flights and the regional airline business from Shanghai Hongqiao International Airport.

Experts noted that more and more private companies are expressing an interest in China's lucrative aviation market.

Airbus Vice-President Adam Brown said in July last year that the passenger traffic of China's domestic airlines will grow more than 20 per cent this year and increase at an average rate of 8.1 per cent per year by 2022.

(China Daily January 11, 2005)