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Old July 9th, 2011, 06:24 PM   #1061
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Airlines to fend off fast-train threat
14:34, July 07, 2011
China Daily

Under pressure from the 300 km/h Beijing-Shanghai rail service that started on June 30, the air transport industry has announced several initiatives to improve punctuality and strengthen cooperation with high-speed rail operators.

A publicity official from the North China regional area of the Civil Aviation Administration of China (CAAC), who spoke on condition of anonymity, said on Wednesday that two meetings were held recently in an attempt to find ways to prevent the profitable Beijing-Shanghai air route from being sidelined by the new fast-train connection between the cities.

"There are not only measures to sharpen flights' competitiveness but there will also be cooperation, such as the fact that airlines will put passengers on fast trains if flights are seriously delayed or canceled," he said.

"It will be a win-win situation and bring travelers convenience because they would otherwise have to waste a night and airlines would have to pay for a hotel."

A measure to improve flight punctuality is the fact that airlines operating the Beijing-Shanghai route will now park a spare plane in each of the two airports for use in emergencies. Airlines will also assign guides at airports to help passengers arriving late get on board in a short period of time, according to Beijing News on Wednesday.

Air traffic control departments are also being urged to give priority to Beijing-Shanghai flights when circumstances, such as thunderstorms or military drills, affect scheduling, the paper reported.

Wang Zhiping, a Shanghai-based engineer, said it was unclear to what extent the steps will improve the viability of flights between the two cities.

"Recent storms caused frequent flight delays, making the high-speed rail seem like really a good choice," he said. "Competition is a good thing because it is the only reason that the airlines have now decided to do something."

Airlines have slashed the price of some tickets, with the cheapest now being 360 yuan ($56) before the airport construction fee and the fuel surcharge. In comparison, the 300 km/h rail service charges 555 yuan for a second-class seat.

The Beijing-Shanghai route has been called a "golden passage" in the past because it has been one of the most lucrative routes in China.

The CAAC in 2007 coordinated airlines to jointly launch an express service that provides flights between two of China's most dynamic cities every half hour. Some 4.18 million people flew between the cities in 2006.

But after the Beijing-Shanghai high-speed railway entered service a week ago, the airlines faced direct competition from trains that appear to offer punctuality, no matter how bad the weather is.

Previous estimates by industry insiders said the opening of the Beijing-Shanghai high-speed line could take 20 percent of passengers away from the airlines.

While the long-term relationship between airlines and rail operators is not yet known, the industry website www.carnoc.com carried statistics from the first few days of the high-speed line on Wednesday and said it seemed to have had little impact on Beijing-Shanghai flights.

Planes between Beijing and Shanghai, it said, had an occupancy rate above 85 percent during the first three days of July.

But Beijing-Nanjing flights and Beijing-Jinan flights saw an obvious drop in their occupancy rate. Compared to an 80 percent occupancy in May and June, the two routes' fell to 65 percent and 50 percent respectively during the first three days of July.

Previously, high-speed railways have forced airlines to abandon routes between Wuhan and Guangzhou and between Hefei and Wuhan.
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Old July 11th, 2011, 05:59 PM   #1062
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Old July 14th, 2011, 05:19 AM   #1063
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CHINA TO INVEST USD$232 BLN IN AVIATION

July 11, 2011

China will invest over CNY1.5 trillion yuan (USD$232 billion) in the aviation industry in the next five years and will push consolidation among airlines to hone their international competitiveness, the official Shanghai Securities News reported on Monday.

It also cited Li Jiaxiang, head of industry watchdog the Civil Aviation Administration of China, as saying that the country would institute favourable tax policies to help domestic airlines open new international passenger and cargo routes.

Li also said that China's three biggest carriers, Air China, China Southern Airlines and China Eastern Airlines, were still too small in scale compared with global rivals.

"Via government guidance and market operations, we must push ahead industry consolidation to form, as soon as possible, two or three airline companies with wide networks that are strongly competitive internationally," Li said.

Citing a cabinet circular to support aviation industry development expected to be announced later this year, the paper also quoted Li as saying that China would build more regional airports, especially in the less-developed western region.

The industry regulator has said that China will add more than 45 airports over the next five years, bringing the total to more than 220.

State media has also reported that Chinese airlines are expected to nearly double the size of their fleet to 5,000 jets by 2015, to meet robust demand for air travel in the world's fastest-growing major aviation market.

(Reuters)
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Old July 14th, 2011, 05:23 AM   #1064
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CHINA REFORMS JET FUEL PRICING

July 12, 2011

China will adjust jet fuel prices once a month from August in an attempt to link domestic rates with those prevailing globally, adding pressure on the Asian market as the new mechanism boosts margins and encourages refiners to ramp up output.

If the plan works, the change may be a precursor for policymakers in Beijing to reform the mechanism for key transport fuels. Emerging economies from China, India to Indonesia spend billions of dollars in fuel subsidies and are often blamed for the surge in oil prices as insulated consumers don't feel the pressure to curb usage.

"The revamped jet fuel pricing is one big step towards a market-oriented system," the National Development and Reform Commission, the marco economic planning body, said. "It's also an experiment for reforming China's refined fuel market."

Under the new scheme, the ex-refinery price will be linked to Singapore spot quotes for the previous month plus a negotiable premium, the National Development and Reform Commission said.

The change, which came shortly after Beijing cut the import duty for aviation fuel to zero, may prepare oil firms to raise imports when needed and also preclude shortages that could develop under the current system.

"With such a link, we can avoid the situation when domestic prices lag behind the international market and refiners don't have the incentive to produce," said an official with China National Aviation Fuel Company (CNAF), the country's near-monopoly marketer of aviation fuel.

"It also offers us more flexibility to secure supplies from the international market."

CNAF, which controls the bulk of the country's aviation fuel supply infrastructure, imports about a quarter of its annual sales of roughly 400,000 barrels per day. China is the second-largest jet fuel market in the world.

China Aviation Oil (CAO), a unit of CNAF and which imports over 95 percent of the country's jet fuel requirement, said that the change will offer more incentives to local refiners to produce and supply more of the product.

IMPORTS

Yet, the impact on the nation's imports may not be significant because of the growth of the aviation industry and refiners need to balance supply to meet demand for other products, a spokesperson for China Aviation said.

Jet fuel makes up just over 4 percent of the total fuel demand of the world's second-largest oil consumer.

The change in ex-refinery jet fuel pricing, to be announced on the first day of each month, may offer airlines a tool to better control their costs.

"Airlines may seek to hedge more of their oil purchases if the domestic supplies become more market-based," said the CNAF official.

A Shanghai-based Chinese airline executive said he expects the change to have a small impact on his firm's bottom line as international routes now already make up 40 percent of the airline's total fuel consumption.

"The different is that NDRC now has to cut domestic prices faster if global markets fall," said the executive, declining to be identified. "In the past, NDRC would raise domestic rates immediately after global oil prices increased but was slow in lowering them when global rates fell."

Linking local prices with the Singapore market will weigh on the benchmark Singapore prices as Chinese plants will have more incentive to pump more, traders said.

BOOST PRODUCTION

"The change in pricing will push down discounts for jet parcels in the market... as the supplies here will need to compete with Chinese domestic production," said a Singapore-based trader.

Beijing has been struggling to revamp the system to better reflect market costs and curb excessive fuel consumption. It may be stuck for now as any reform may lead to an increase in retail prices, potentially stoking inflation.

Under the new system, CNAF will negotiate with leading refiners Sinopec, PetroChina and CNOOC an annual premium for jet fuel imports that will be applied to the monthly pricing for the following year, the NDRC said.

The commission also set a temporary cap on the ex-factory prices that should not exceed the import cost based on Singapore spot quotes over a transitional period, but it did not specify how long that will be.

(Reuters)
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Old July 15th, 2011, 10:50 AM   #1065
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First 777-300ER for Air China




http://www.airliners.net/photo/Air-C...-ER/1951138/L/
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Old July 17th, 2011, 08:44 AM   #1066
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What is the safety record like for these Chinese carriers?
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Old July 17th, 2011, 09:46 AM   #1067
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Quote:
Originally Posted by Unity Force View Post
What is the safety record like for these Chinese carriers?
It's actually pretty good. You can look up the details online - one such source is : http://www.airsafe.com/
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Old July 19th, 2011, 05:47 PM   #1068
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Old July 19th, 2011, 07:44 PM   #1069
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Old July 19th, 2011, 08:24 PM   #1070
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http://www.airliners.net/photo/Haina...c5945050606a02




http://www.airliners.net/photo/Haina...c5945050606a02
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Old July 20th, 2011, 05:58 PM   #1071
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Hainan carrier weighs European presence
09:08, July 19, 2011
China Daily

HNA Group, China's fourth-largest airline group, is seeking to become the first Chinese airline to invest in the European aviation sector by bidding for a Hungarian carrier and a German-based airport operator.

Wu Feng, manager of the brand center of HNA group, said his company is targeting Malev Hungarian Airlines and Hochtief Airport Ltd Co, an airport management company that is based in Essen, Germany.

At present, he said, the impetus for the Hungarian investment is coming entirely from the Haikou, Hainan-based company.

Wu said there had been no specific proposals yet involving the price or method of investment in Malev.

Wu said the Chinese and Hungarian governments have indicated support for the deal, but HNA still needs to hold further talks with Malev.

HNA is also bidding for Hochtief Airport, which owns stakes in six international airports in Athens, Dusseldof, Hamburg, Tirana, Sydney and Budapest, Chen Feng, board chairman of HNA group, said on Friday.

HNA is competing with four other companies for Hochtief Airport, and bids will likely range from $1.14 billion to $1.28 billion, Reuters reported on July 14.

However, analysts said that the European airline industry is not a profitable business and now is not a good time to enter the sector.

Li Lei, an analyst with CITIC China Securities Co Ltd, said the European market is saturated and competition among local airlines is stiff, both of which could pose a risk to HNA's business in Europe if the investments go through.

Hungary does not have a large aviation market and it will take a long time for HNA to profit from its investment, Li said.

The upside of the proposed deal, Li said, is that the valuation is not high as the industry is still struggling.

He said Chinese airlines should not abandon the European market, and it is not a bad idea to start with an East European partner, rather than going directly into the more developed and competitive Western European market.

The South China Morning Post reported on Friday that HNA signed a cooperation agreement with the Hungarian Capital Association during Premier Wen Jiabao's visit to the country last month.

This is not the first time that HNA has approached the Hungarian carrier, China Business News reported.

In 2004, HNA Group showed interest in restructuring Malev, but the Chinese side subsequently withdrew on concerns about Malev's debt.

Malev is a state-owned carrier with a 65-year history. It has 22 aircraft serving 50 destinations in 36 countries, according to its website.
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Old July 21st, 2011, 11:21 AM   #1072
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http://www.airliners.net/photo/Shand...7d491b24b199b5
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Old July 21st, 2011, 02:56 PM   #1073
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Old July 22nd, 2011, 05:59 PM   #1074
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Old July 23rd, 2011, 10:48 AM   #1075
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✈ | 3U/9C/CA*/CZ/FM()/HU/MF/MU/SC/ZH | China-Based Carriers

This thread will be the discussion thread for all carriers based in China.

The discussion from the following threads, which have already been closed and archived, should now be going into this one.
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Old July 23rd, 2011, 11:27 AM   #1076
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Quote:
Air China receives its first Boeing 777-300ER



BEIJING -- Air China, the country's biggest international carrier, received its first Boeing 777-300ER Thursday afternoon, which is also the first such aircraft for the Chinese mainland.

Air China will introduce 19 such aircrafts in the future, the company's vice president He Li said at the reception ceremony in Beijing.
The first aircraft will fly on routes between Beijing and Guangzhou, and Shanghai and Shenzhen, he said.

The second will be used on routes between Beijing and Frankfurt, and London and Paris, and will replace Boeing 747-400 planes currently used between China and North America, he said, without saying when the company will receive the second Boeing 777-300ER.

Air China will increase the proportion of wide-bodied aircrafts in its flight team in the next five years, he added.
(China Daily 2011)
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Old July 23rd, 2011, 02:11 PM   #1077
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http://spotters.net.ua/file/?id=51656&size=large
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Old July 23rd, 2011, 04:32 PM   #1078
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China’s HNA Group to Invest in Turkish Cargo Airline ACT
Bloomberg
Jul 22, 2011 6:20 PM GMT+0800

HNA Group Co., controlled by China’s Hainan provincial government, said it will invest in a Turkish cargo airline as it seeks to expand in Europe.

The investment in ACT Airlines Inc. will help the Istanbul- based carrier more than double its fleet to 10 freighters within two years, HNA said in an e-mailed statement today, without disclosing financial details.

The Chinese company plans to invest as much as $250 million in Turkey, Xinhua News Agency reported today without citing anyone. HNA Group spokesman Tong Fu didn’t answer four calls to his mobile phone seeking comment. Calls made to ACT Airline’s public relations office in Instanbul weren’t answered.

HNA, which runs airlines, airports, hotels and department stores, said July 18 that it may bid for Essen, Germany-based Hochtief AG’s airport-operating unit. Acquisition of the business will give the buyer control of main airports serving Hamburg, Sydney, Budapest and Athens.
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Old July 28th, 2011, 01:48 AM   #1079
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Looks like CA is going to have decent looking premium cabins finally.

Quote:
Air China puts first B777-300ER into service





Air China took delivery of its first wide-body Boeing B777-300ER last week, featuring the carrier’s new business class cabin.

The aircraft was first deployed on the Beijing-Guangzhou route and will eventually be followed by the Beijing-Shanghai and Beijing-Shenzhen sectors. When the carrier receives its second B777-300ER later this year, it will be put on the Beijing-Frankfurt route from September 1, 2011, then be used for other long-haul destinations including London, Paris and North American destinations.

As reported earlier, Air China is conducting a cabin revitalisation programme (see story here). This aircraft features the carrier’s new premium products, including 180-degree flat bed seats in business and first class as well as an upgraded inflight entertainment system (IFE).

This B777-300ER is the first out of 19 to arrive, with three more to be added to the carrier's fleet by year-end. Nex year, another six will be delivered and the remaining nine over the coming years. The introduction of this aircraft and its future fleet of B747-800 Intercontinental solidifies the carrier’s position in the international aviation market.

For more information, visit www.airchina.com
(Business Traveller 2011)
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Old July 28th, 2011, 02:08 AM   #1080
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China launches Tibet Airlines



Posted by- Neelam Mathews
July 27, 2011

Tibet Airlines, the only carrier based in Lhasa, has started operations with a direct flight connecting Beijing and Lhasa.

State-owned Tibet Investment Co. holds 51 percent of the carrier established in May 2010 while two companies Tibet Sanli Investment Company and Tibet Ruiyi Investment Company, own 39 percent and 10 percent, respectively.

Presently TAC has one Airbus A319 with plans to add 20 by 2015. The systems have been modified to supply oxygen for 55 minutes, compared with the usual time of 22 minutes for aircraft that don't serve the plateau region, Tao Wenge, spokesmanof Airbus China Ltd, said.

TAC plans to offer four services a day connecting Lhasa, Ngari and Chengdu, in Sichuan province. Each flight will take about two hours.

Tibet Airlines plans to start flights to Europe by 2015 or 2016.

aerospace diary


by Juergen Lehle/albspotter.eu
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