December 22 one of the China’s private carriers United Eagle Airlines’ spokesman reported that UE Air reached an agreement with Sichuan Airports Corporation. UE Air owes Sichuan Airports 30 million CNY, it will be paid in parts. The Company’s debt to Sichuan province’s airports in the period from March 2007 to October 2008 reached 30.45 million Chinese Yuan, which is 90% from the total volume of the airports’ service for the Airlines.

      November 20 UE Air received a letter from Sichuan Airports Corporation, which said that if Airlines don’t pay off their debts, airports will stop providing any service to UE Air. The parties agreed that UE Air from January to July 2009 pays 1,5 million yuan monthly; from July to December not less than 1,5 million monthly in order to pay off all their debts by the end of the year. All services concerning flights planned to be operated in 2009, all fees must be paid the same day without any delays.

      Sun Zhijun, Financial Director of United Eagle Airlines, specifies measures to overcome company’s financial crisis—raising company’s funds, bank loans, company’s internal operating optimization, cost reduction. He says that the Company needs about 100 million yuan to overcome difficulties.

      Recently a number of China’s privately owned Carriers faced financial troubles. OK Air due to the major lack of financial resources had to suspend their passenger flights; Spring Airlines’ profits dropped by 70%; East Star Airlines experienced lack of qualified pilots and had to sign a mutual aid memorandum with Spring Airlines.