Wang Junjin, chairman of the board of Okay Airways, said that with the approval of the civil aviation management department Okay Airways will suspend its passenger services from December 15, 2008, however the airline says it will continue with its cargo operations.
Wang said that Okay Airways has applied to suspend its passenger flights since its corporate governance structure can not be implemented to comply with the safety and aviation regulations for China.
By taking advantages of the flexibility of a private airline, Okay Airways hopes to improve its competitive ability and earning capacity through optimizing route structure, increase of efficiency, and costs reducing by launching various products.
In addition, Okay Airways has promised that the company would not stop payments to its employees or lay-off staff during the period that its passenger service its suspended.
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