On 18th September, Shanghai-based private Juneyao Airlines said the company is ready to make its maiden flight on 25th September,although it does not yet know to which city it will fly to first.

The General Administration of Civil Aviation of China (CAAC) has not given official approval to Juneyao's application to open flights from Shanghai to cities including Changsha, Taiyuan, Zhengzhou and Sanya.

Approval is expected "in the following days" to some or all of the air routes, said Wang Zhong, spokesman of Junyao Group.

With a registered capital of 150 million (US$19 million), Juneyao Airlines is a subsidiary of Junyao Group.

"Our plane will take off from Shanghai Hongqiao Airport on 25th September. The destination city will be named in a press conference to be held later," said Wang.

According to market speculation, the CAAC has approved two routes for the new airline, but Wang refused to comment on the rumour.

Earlier this month, the airline received its first aircraft, an A319 rented from European aviation giant Airbus.

With 120 economy class seats and eight in business class, the A319 plane, a member of the A320 series, is regarded as a fuel-saving aircraft.

The company expects to receive another two planes from Airbus, one A319 and one A320, by the end of this year, Wang said.

At a time when domestic airlines are plagued by soaring fuel prices and fierce market competition, Juneyao faces more serious challenges in starting up than other private airlines such as the Shanghai-based Spring Airlines, said industry analysts.

"We are not following the way of Spring Airlines," said Wang, who is unwilling to reveal the company's targets for the coming years.

In earlier interviews, Junyao Group President Wang Junjin told Shanghai media that the airline will largely focus on middle and high-end business passengers. Aviation will become a major part of the group business, he said.