After Happiness Airlines suspended operations for 255 days, a glimmer of hope appears for resolving the massive salary arrears affecting numerous employees.
According to information obtained, Peng Shibing, Party Committee Secretary and Executive Director of Happiness Airlines, stated in an internal work group on January 21 that he and the task force had been working overtime until late night, sometimes overnight, to calculate social insurance, housing fund, and partial salary amounts. He emphasized the enormous workload and completion of a phased task, aiming to resolve all employees' (including former employees) social insurance, housing fund, and partial salary issues before the Spring Festival, urging everyone to wait patiently and cooperate with the verification work.
He notably used three exclamation marks: "Please spread positive energy! Give me some strength! Give me some confidence! And give me some trust!"
Internal employees revealed this was Peng Shibing's first direct response to all current employees regarding the salary arrears issue in an internal group.
Currently, Happiness Airlines' debt exceeds 5 billion yuan, not including the internal employee salary arrears. Since operations halted on April 27, 2025, the salary issue remains unresolved, and efforts to find and negotiate with new strategic investors have shown no progress.
Many Happiness Airlines employees now rely on side jobs to survive. Some drive for DiDi, others deliver food, some act in short videos, while others cannot retire due to unpaid social security contributions; some have even divorced.
"More employees are getting divorced," noted Wang Yu (pseudonym), a pilot with Happiness Airlines, who told that his arrears for housing fund, salary, and hourly fees total approximately over 400,000 yuan, which is considered medium-level. He mentioned that several Boeing captains are owed 6-7 million yuan, as the company promised relocation fees and guaranteed minimum hourly fees upon their recruitment, leading to generally higher incomes.
With no regular salary income for an extended period—only a monthly payment of 2,160 yuan based on Xi'an's minimum wage—many employees depend on part-time work.
"Many drive for DiDi, renting an electric car for about 2,900 yuan per month and driving daily," Wang Yu said frankly, adding that colleagues also deliver food, and recently, some explored new opportunities: "One colleague acts in short videos as an extra, earning 100-200 yuan per day, which is quite good with low costs."
He lamented the increase in divorces among colleagues: "With no money at home, constant arguments strain relationships."
Regarding the possibility of returning to flying, Wang Yu believes it's unlikely: "Even if I spend 300,000-400,000 yuan out of pocket to train for Boeing now, finding a job may be difficult. Most airlines require co-pilots under 35, unlike before when it was easier."
Pilots initially continued training but eventually gave up.
On Happiness Airlines' official website, the company is described as "the world's largest and only commercially scaled operator of domestic civil aircraft." Established in 2008 by AVIC, its mission was to operate the domestically produced Xian MA60 aircraft.
"The company started with over 20 MA60 aircraft, but now only two can fly, and they are the oldest ones," Wang Yu, an MA60 pilot, expressed regret. He highlighted routes like Alxa Left Banner to Ejin Banner in Inner Mongolia, where the short, narrow runway limits access to their aircraft, and the 20-minute flight from Yantai to Dalian, much faster than hours by high-speed rail.
An aviation industry insider described the MA60 as the "aerial tractor"—noisy and slow but versatile on runways and fuel-efficient, calling it the "king of cost-effectiveness."
According to an internal source, years ago, Happiness Airlines' leadership reported to the Northwestern Regional Administration of the Civil Aviation Administration, proposing to develop Boeing operations and halt MA60 flights. The administration head clearly stated that the aviation sector didn't need Happiness Airlines' few Boeing aircraft and warned that stopping MA60 operations would mean suspending the airline.
After sustained losses, in November 2018, state-owned Xi'an Aerospace Investment Company restructured Happiness Airlines, becoming its controlling shareholder. Industry insiders noted that after the takeover, the Xi'an state-owned entity aimed to phase out the MA60 and purchase Boeing 737s to shift to a "trunk-and-branch combined" model, but performance did not improve.
The internal source disclosed that five months after the suspension, on September 21, 2025, Happiness Airlines held a meeting where management made three clear commitments.
First, the introduction of strategic investors looked optimistic, with the government pledging to find a backer if no professional aviation operator intervened by year-end. Second, pilots should maintain qualifications, undergo simulator training and medical exams on time, with company reimbursement. Third, employee medical insurance payments would be resolved.
Following the meeting, many pilots continued training and exams, hoping to return to the skies once operations resumed. However, with no improvement in sight, many gradually gave up.
Wang Yu explained that maintaining pilot qualifications requires simulator recurrent training and proficiency checks every six months, plus annual medical exams for those under 40 and biannual exams for those over 40. His last simulator training was in May 2025; he hasn't gone since, as simulators were halted around September or October 2025, with leadership stating it was meaningless and the company lacked funds.
"If no investment is found, bankruptcy is possible."
In late 2025, a group of employees protested for unpaid wages. On December 30, 2025, the company held another meeting. Insiders revealed the main message was that talks with investors were not optimistic, and resuming operations might be difficult. A key point emphasized was that Xi'an's priority was preserving Happiness Airlines' operating license.
When asked if the municipal government would backstop if no investor was found, leadership clearly stated: "The company might enter bankruptcy liquidation."
Tianyancha data shows Happiness Airlines' judicial cases surged to a record 87 in 2025, including 29 labor dispute cases. Due to failure to fulfill payment obligations, Happiness Airlines and its legal representative Peng Shibing were subject to six consumption restriction orders issued by courts nationwide in 2025. The latest was issued on January 5, 2026, by the Chengdu High-Tech Industrial Development Zone People's Court.
Time is running out for Happiness Airlines. With operations suspended since April 27, 2025, nearing a year, failure to resume operations could lead to revocation of its large aircraft public air transport operator license under relevant regulations.
Wang Yu shared his view on the license: "When everyone wants to invest, the license is valuable. When no one buys, it's just a piece of waste paper."
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