Outsourcing to China: Airlines?

This is an interesting piece of news. A small regional carrier based in Arizona, Mesa Air Group, has just signed a deal with privatized Chinese carrier Shenzhen Airlines, to create a joint venture called Beijing Airlines, to operate in China.

Mesa currently operates only within North America, primarily doing contract regional work for United, Delta, and USAir/America West, in 43 states, using 200 aircraft.

No jobs will be outsourced or off-shored. Quite the contrary, this marks the first time that a U.S. carrier has ventured into the Chinese domestic passenger market.

Beijing will start flights next year, with small aircraft, and hope to include routes to eleven cities rapidly. Part of the reason is their desire to have 20 planes operating before the Olympics in 2008.