Jetstar aims to expand to mainland (2)

Shanghai-based Spring Airlines Co Ltd remains the only existing budget carrier after Okay Airways, another private airline, quit the market eight months after its maiden flight in 2005.

China Eastern is still the only national carrier to consider a move into the sector.

Wang Changshun, chairman of Air China Ltd, said last June that it had no plans to enter the budget market, due to the tough market conditions.

Ma added that markets can generally expect a surge in domestic travel once GDP per capital reaches $3,000, and that making travel more affordable has been a long-held vision for the carrier.

But he called for more preferential policies to bolster the development of the nascent segment.

"Uncontrollable expenses, such as import duties and value-added tax on airplanes and components, jet fuel, landing and take-off fees paid to the airports, effectively cap carriers' capability to lower costs, " Ma said.