The airline's maiden flight in March 2005 had been heralded as the start of a new era of reform and competition as a clutch of other private operators followed in its wake.
But the pioneering Okay became the first to succumb to a pronounced downturn in the sector that has mirrored the global economic crisis and is expected to decimate the ranks of the country's overcrowded airline market.
China still has at least 23 airlines operating domestically, including a variety of start-up private carriers and smaller players controlled by regional governments.
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