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Old August 16th, 2004, 01:04 AM   #1
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CN | China Aviation News

Wednesday August 11, 4:09 PM
China home to world's fifth biggest air traffic volume



SHANGHAI (AFP) - China's air traffic volume has become the world's fifth biggest and would be second only to the United States if Hong Kong, Macau and Taiwan were included, state press reported.

In the first six months of the year China handled 56 million passengers, up 39.3 percent from the same period in 2002, the Wen Hui Bao reported, citing a conference report from the International Civil Aviation Organisation.

China's aviation industry as a whole booked a 5.17 billion yuan (630 million dollar) profit in the first six months of the year on soaring demand, up 517 percent from the same period in 2002, the newspaper said.

The report did not provide year ago comparisons.

The World Tourism Organization has predicted China could be attracting more visitors than any other country in the world within the next decade.

In preparation for the influx of tourists, a giant new freight and passenger hub -- Baiyun International Airport -- was opened in southern Guangdong province earlier this month.

It is capable of handling 25 million passengers and one million tonnes of cargo a year.

In Beijing, the Capital International Airport is undergoing an expansion that when completed in 2007 will allow the airport to accommodate 60 million passengers and 1.8 million tons of cargo annually.
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Old August 17th, 2004, 02:12 AM   #2
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U.S. Airlines Like New Deal With China
By MICHELINE MAYNARD, New York Times
Published: August 15, 2004

THE nation's airlines are hailing an agreement signed last month that could lead to a five-fold increase in the number of flights between the United States and China.

The news couldn't come at a better time for the airline industry, which has seen competition skyrocket and profits plummet everywhere except the Asian market. Airlines report a strong increase in demand this year, with about 800,000 people traveling between the United States and China. Though airlines say it is difficult to estimate the percentage of business versus vacation travelers, much of the traffic is believed due to the rush of American companies to start or expand ventures in China.

This year through April, travel between the United States and Asia in general rose 24 percent versus the same four months last year, when passenger levels fell sharply with the outbreak of Sudden Acute Respiratory Syndrome and a weaker economy, according to the Commerce Department's Office of Travel and Tourism Industries.

The agreement, announced July 23, will increase the number of passenger and cargo airlines allowed to fly between China and the United States by the end of the decade to nine from four. And the number of allowable flights a week will jump to 249 from 54 by then.

Transportation Secretary Norman Y. Mineta, in announcing the agreement, said further expansion is possible. Right now, United and Northwest are the only United States passenger airlines going to China, which also is served by Federal Express and United Parcel Service. But Secretary Mineta said another passenger airline and another cargo carrier might be selected next year.

Interested airlines include American, the world's biggest, which said it planned to lobby hard to be allowed to pick up China flights. Continental Airlines also is interested in flying to China. Delta Air Lines, meanwhile, began a code-sharing arrangement with Air China in April, allowing passengers to earn Delta miles on Air China flights.

The old agreement limited American carriers to five cities in China. (Chinese carriers, which are run by the government, are allowed to fly to 12 American cities.) The new agreement places no limit on the number of cities that the carriers can serve in either country.

Given China's vast size, however, it's still likely that Americans will head for a major destination, like Beijing, Shanghai or Hong Kong, and then take domestic flights from those cities.

Of the 195 potential new flights a week, 84 can be passenger flights, while 111 would be cargo flights. The expansion means there will be plenty of flights available in 2008, when Beijing is host to the Olympic Summer Games. But airlines are not waiting until then to expand their service.

Within hours of the agreement, United and Northwest announced service on two new routes. United, which recently began flights between San Francisco and Shanghai, said it would add seven nonstop flights a week between Chicago and Shanghai. Northwest is adding daily flights between Detroit and Guangzhou, via Tokyo.

Guangzhou is the third city in China to be served by Northwest, which began flying there in 1947, when it was known as Northwest Orient. The airline serves Beijing and Hong Kong through Tokyo.

Whether the new service to China means ticket prices will fall isn't clear. Robert W. Mann Jr., an airline industry consultant in Port Washington, N.Y., said the strong demand by airlines to add flights reflects American companies' expansion in China. General Motors, for instance, is pushing to make China its second-biggest market, behind the United States.

Given that China is one of the last markets offering airlines the opportunity to charge top dollar for premium service, Mr. Mann said he expected the carriers to focus much of their attention on business travelers.

The opportunity to attract high-paying customers is a reason American Airlines is pushing hard to start flights to China. The airline estimates that 45 percent of visitors to Asian cities pay full-fare prices.

"My only regret is that we don't have a bigger Asian network," American's chief executive, Gerard J. Arpey, said in July.

But in the long term, airlines will have to set fares that can appeal to a wide variety of customers. "You can bet that travelers in China will not be willing to pay those fares," Mr. Mann said.

Increased service will mean more Americans getting a chance to experience domestic aviation in China, which can be an unpredictable experience. China is in the midst of a restructuring of its airline market. In the 1980's, 10 carriers operated in China, all under government control. Two years ago, the General Administration of Civil Aviation of China, known as C.A.A.C., said it would combine the airlines into three: Air China, China Eastern and China Southern.

Delays in China are notorious: two of every five flights within the country do not take off on time, the aviation agency says.

A group of private investors hopes to create China's first privately owned airline this year, and there is talk in aviation circles that the government may create a low-fare carrier. But that is still down the road, giving American carriers a window of opportunity to fly to a part of the world that is still ripe for exploration.
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Old August 29th, 2004, 10:39 PM   #3
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Saturday August 28, 3:06 PM
China Southern Air To Join SkyTeam Alliance; Likely In 06





HONG KONG (Dow Jones)--China Southern Airlines Co. (ZNH), one of China's three major state-owned carriers, said it had begun exclusive discussions with the SkyTeam airline alliance with the aim of joining the group in the future.

China Southern said it "is now the first carrier in the nation set to join an airline alliance." China's airlines, with their access to a huge and rapidly growing domestic market, have been eagerly courted by such global alliances.

"As a strategic partner for the alliance, China Southern will help us provide greater access to the country and region for customers of all the SkyTeam carriers," said Yang-Ho Cho, chairman and chief executive of alliance member Korean Air Co. (003490.SE), in a statement Saturday.

Other members include Air France (AKH), Alitalia S.p.A (AZA.MI), CSA Czech Airlines (CAA.YY) and Delta Air Lines Inc. (DAL). Later this year, Continental Airlines Inc. (CAL), KLM Royal Dutch Airlines and Northwest Airlines Corp. (NWAC) are to join the group.

China Southern noted that it already has code-sharing agreements with Air France, Korean Air and Delta. Alliance membership means expanding cooperation to include joint frequent flyer programs, joint use of airport lounges and other facilities, and joint purchasing.

"China Southern Airlines will begin to adjust its extensive network in China and throughout the world to complement our new alliance members as well as enhance its operations and service levels as we look forward to official membership in SkyTeam in an appropriate time," said China Southern Vice President Li Kun in a statement.

SkyTeam said the preliminary agreement with China Southern will allow it to join once it meets the alliance's quality standards, which is likely to happen in 2006.
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Old September 2nd, 2004, 08:44 AM   #4
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Wednesday September 1, 7:06 PM
China Aviation buys 630,000T Q4 jet fuel
By Felicia Loo

SINGAPORE, Sept 1 (Reuters) - China Aviation Oil , has bought via tender 630,000 tonnes of jet fuel for October to December, traders said on Wednesday, raising its total annual volume by 30.2 percent from last year.

The latest purchase puts the company's total for this year at 2.588 million tonnes, traders said. China Aviation, which supplies nearly all of China's jet fuel imports, said it bought 1.988 million tonnes in 2003.

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China's jet fuel consumption could grow about 15 percent next year from an estimated 5-6 million tonnes this year, one industry source said.

China Aviation, which also provides a third of total Chinese jet fuel consumption, will get more supply from Singapore than South Korea in the latest tender. South Korean refiners need to stockpile to meet peak demand for kerosene and diesel for winter heating, traders said.

"Supply was more from Singapore and it was a mix of cost-and-freight and free-on-board cargoes," one trader said.

South Korea was awarded about 150,000 tonnes in the tender, traders said.

The cost-and-freight premiums were $1.80-$1.90 a barrel to Singapore spot quotes for October deliveries. Prices were 60-70 cents higher at $2.50 a barrel for arrivals in November and December, they said.

Cargoes for October were at 60-70 cents a barrel above benchmark prices on a free-on-board (FOB) South Korea basis, while FOB spot premiums for loadings in November and December ranged from $1.30 to $1.60 a barrel, traders said.

"The large size of the upcoming quarter's fuel requirements is strong evidence that the commercial aviation sector in China remains robust," Chen Jiulin, the company's managing director and CEO, said in a statement on Tuesday, ahead of the tender award.

Additional spot tenders could be expected in the upcoming quarter, the company said. In the third quarter, China Aviation bought an additional 30,000 tonnes of jet fuel on top of the 630,000 tonnes bought via the quarterly tender.

"Jet fuel demand in China is on the rise," said a Singapore-based industry source, who declined to be named.

"Demand is still robust despite Beijing's efforts to cool down the economy," he added.

China Southern's passenger traffic soared 72 percent in the first six months of 2004 from a SARS-blighted 2003.
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Old September 7th, 2004, 09:08 PM   #5
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Saturday September 4, 5:26 AM
UPS, FedEx get tentative OK for new China service

WASHINGTON, Sept 3 (Reuters) - FedEx Corp. , UPS Inc. and Northwest Airlines each received tentative approval from the government on Friday for expanded all-cargo U.S.-China service.

The Transportation Department also proposed that Polar Air Cargo Inc. be granted nine weekly frequencies, which would be allocated over 2004 and 2005. FedEx and UPS would each get 12 additional weekly frequencies over the rest of this year and next, and Northwest would get six over the same period.

The new service, an unprecedented expansion of air cargo rights, was created by the U.S.-China aviation agreement signed by both nations this summer. Expanded passenger service to United Airlines and Northwest was awarded in July.

Final approval for the all-cargo service is expected soon after an 11-day comment period expires, the Transportation Department said.
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Old September 8th, 2004, 10:55 PM   #6
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Wednesday September 8, 1:23 PM
China Southern Air Unit Leases 23 A320s To Boost Fleet

HONG KONG (Dow Jones)--China Southern Airlines Northern Co., a unit of China Southern Air Holding Co., will lease 23 A320 series planes
to replace its aging MD-82 and MD-90 aircraft, Airbus (ABI.YY) said Wednesday.

China Southern Air Holding is the parent of Hong Kong-listed China Southern Airlines Co. (ZNH).

Shenyang-based China Southern Airlines Northern will lease the aircraft from International
Lease Finance Corporation, the wholly owned airplane leasing unit of American International
Group Inc. (AIG).

Financial details of the deal weren't disclosed.

China Southern Airlines Northern has already taken delivery of four A319s this year. It will
receive another seven A319s in 2005. The remaining 12 planes will be either A319s or A320s,
of which six will be delivered in 2006 and the remaining six in 2007. The company's current
Airbus fleet includes eight A321s and six A300-600s.

The new Airbus planes will help cut the airline's training and maintenance costs, said Zhou
Yongqian, vice president of China Southern Air Holding Co. Zhou is also president of China
Southern Airlines Northern.

China Southern Air Holding was in 2002 handed ownership of two other state-owned airlines, China Northern Airlines and Xinjiang Airlines, as
part of a government reorganization of the airline business. The two other airlines now operate their flights under China Southern codes.

Airbus said its A320 Family - composed of the A318, A319, A320 and A321 - is the leading single-aisle aircraft family, with around 3,200 planes
sold to over 120 customers and operators worldwide.
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Old September 10th, 2004, 05:04 PM   #7
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Friday September 10, 9:48 AM
HK PRESS: Air China May Sell Shrs To Deutsche Lufthansa



HONG KONG (Dow Jones)--Air China may sell a 10% stake to Deutsche Lufthansa AG's (LHA.XE) Lufthansa German Airlines ahead of the Chinese carrier's upcoming stock market debut, the local Chinese-language newspaper Sing Tao Daily reports.

Air China plans to list shares in Hong Kong, by next month at the earliest, the report says. The airline hopes to sell an around 28% stake in an initial public offering that will raise between US$500 million and US$800 million.

The proceeds will be used to buy new aircraft: Air China plans to buy 14 medium-size planes in the second half, 15 in 2005, and 10 more in 2006, the report added.

The report also said Lufthansa German Airlines hasn't decided whether to buy a stake in Air China as the Chinese company said it won't pay dividends in the coming few years. Air China will also invite Hong Kong tycoons like Cheung Kong Group's Li Ka-shing to invest in the company, the report said.
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Old September 11th, 2004, 05:09 AM   #8
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Friday September 10, 6:39 PM
China Southern to lease 23 Airbus A320 jets

China Southern, the country's largest air carrier, will lease 23 Airbus A320 passenger jets to replace its aging fleet of McDonnell Douglas planes, the airline announced Friday.

The planes, four of which have been delivered already, will be operated by the carrier's China Southern Airlines Northern Co. subsidiary, which already operates 16 Airbus jets, the company said in a statement.

The jets, powered by V2500 engines made by International Aircraft Engines, will be leased from International Lease Finance Corp., the company said.

The move marks another victory in the European consortium's campaign to chip away at American rival Boeing's long-standing dominance of the Chinese market. McDonnell Douglas Corp. was acquired by Chicago-based Boeing Co.

"As one of the earliest Airbus operators in China, we have been satisfied with our cooperation with Airbus," Zhou Yongqian, vice president of China Southern Air Holding Co., was quoted as saying.

"The introduction of new Airbus aircraft on a large scale will rationalize our fleet, reduce training and maintenance costs and increase passenger comfort," Zhou said.
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Old September 17th, 2004, 08:05 AM   #9
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Friday September 17, 5:31 AM
World Airways to offer service in China, Germany

NEW YORK, Sept 16 (Reuters) - World Airways Inc. said on Thursday it would begin operating freighter aircraft between Germany and China for a unit of Lufthansa Cargo Charter, its first long-term agreement with Lufthansa Cargo.

The announcement came six days after the company said it would share a U.S. Air Force airlift contract worth almost $1 billion.

Shares of World Airways rose to $4.51 from their Nasdaq close at $3.93.

The Peachtree City, Georgia-based cargo carrier said it would provide international cargo service between Nuremberg, Germany, and Xian, China. The service will begin in October 2004 and continue through December 2005. The service is worth about $23 million for the term of the agreements, the company said.
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Old September 17th, 2004, 04:26 PM   #10
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Spanair looks to open up China routes

129 words
17 September 2004
Airline Industry Information
English
(c) 2004 M2 Communications, Ltd. All Rights Reserved.

Spanair is hoping to introduce two weekly direct flights to China with the option of a third in the future.

The Spanish airline has been canvassing for political support for the flights from Barcelona's El Prat airport to Beijing and Shanghai, with Spain keen to capitalise on the Chinese tourist market and cement its place as the world's second most popular tourist destination.

China has recently signed a Authorised Destination Status accord with the European Union, allowing Chinese tourists to travel to 22 EU countries on visas. Fellow Spanish airlines Iberia and Air Europa have also voiced interest in the routes to Beijing and Shanghai, reports EUBusiness.

Comments on this story may be sent to [email protected]
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Old September 23rd, 2004, 12:58 AM   #11
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Thursday September 23, 4:34 AM
Continential Airlines applies for two China routes

SAN FRANCISCO, Sept 22 (Reuters) - Continental Airlines said on Wednesday it had applied for permission with the U.S. Department of Transportation to operate two routes of flights into fast-growing China.

The New York-based airline said that it is seeking permission to start service to Beijing in 2005 and to Shanghai in 2006 from Newark Liberty International Airport in New Jersey.
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Old September 23rd, 2004, 06:55 PM   #12
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South China Morning Post
September 23, 2004
SECTION: Business; Pg. 3

UPS adding China routes Sino-US air pact opens way to connect mainland with company's global hubs
Russell Barling

United Parcel Service (UPS) is to begin three new round-the-world services linking Asian manufacturers with key western trading partners as the company looks to capitalise on the new rights it won in July's Sino-US air services agreement (ASA).

On Tuesday, it launched a service connecting its hubs in Louisville, Kentucky; Cologne, Germany; Dubai, Taipei and the Philippines, and awaits approval from the US Department of Transport to start global route networks serving Shanghai and Guangzhou.

"We are seeing the results of our firm advocacy of open skies and free trade," said UPS international president David Abney. "The breakthrough that came with the US-China aviation agreement was very encouraging."

Next month it will also launch a thrice-weekly intra-Asia flight - connecting Hong Kong, Singapore and the Philippines - to bring semi-finished goods made in Southeast Asia for assembly in the booming manufacturing centres around the Pearl and Yangtze river deltas.

"We are seeing increased connectivity between the markets of Southeast Asia and China," said Ken Torok, UPS president for Asia Pacific. "There is an increasing volume of parts and components coming up to China from where the finished products are exported."

For the past five years semiconductors, computer peripherals, and radio and telecommunications equipment have been China's top three air-cargo imports, according to consultancy Merge Global.

This month the US Department of Transport provisionally granted UPS permission to add six flights to Shanghai, which it can launch as soon as final approval is received, probably within two weeks.

It also was given the right to begin serving Guangzhou six times a week from March 25.

UPS yesterday applied for three of the 12 new flights between China and the US that will be available from March 25, 2006, but Mr Abney declined to say which mainland market those flights would target.

According to its application to the Department of Transport, the carrier intends to serve the Shanghai market via Osaka, Japan.

The global services through Shanghai and Guangzhou were made possible by the surprisingly liberal Sino-US agreement, which Mr Torok said was prompting other countries to revisit their own ASAs.

"It is putting pressure on the other agreements here in Asia," he said. "Japan has always been a challenge for us. But we are now optimistic that the Sino -US deal could be a catalyst for them to re-evaluate their aviation regime ."

UPS said its China export volume grew a comparative 70 per cent in the three months to August.
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Old September 27th, 2004, 04:03 AM   #13
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Monday September 27, 12:59 AM
Germany's Lufthansa to boost flights to Asia

BERLIN (AFP) - German flag carrier Lufthansa plans to boost by 50 percent its flights to China by 2007, company chairman Wolfgang Mayrhuber said.

Already the European airline with the most connections between Europe and China, Lufthansa wants to increase its number of weekly flights there to around 60, he told the Frankfurter Allgemeine Sonntagszeitung.

Mayrhuber also said India was being targeted and that his company plans to raise the number of passenger flights there by about 60 percent and lift the number of freight links by 70 percent.

"Our Asian business will grow altogether by at least 15 percent" by 2007, he said.

The number of passengers travelling in Asia with Lufthansa grew by 27 percent in the first eight months of the year compared to the same period in 2003 as fears decreased about the respiratory lung illness SARS.



Copyright 2004 South China Morning Post Ltd.
September 24, 2004

FedEx may make Guangzhou part of its Asian hub; US cargo carrier applies for six weekly frequencies to increase China presence
Russell Barling

Federal Express (FedEx) yesterday applied to begin daily services to Guangzhou in 2006 as part of the third tranche of extra frequencies won by United States carriers in the latest air services agreement (ASA) with the mainland.

The flights hinge on approval from the US Department of Transport (DoT) but the move indicates the US cargo carrier's intention to build its business at Guangzhou with an eye to making the airport one half of a dual-hub strategy in the Asia-Pacific region.

Its Asia-Pacific president, David Cunningham, said: "We have applied yesterday as part of the 2006 entitlement for six weekly frequencies over Guangzhou."

Only 12 new frequencies will be awarded to US cargo carriers in 2006 and the DoT received requests for 20 new flights from incumbent airlines yesterday.

One new US airline will also enter the market, with four carriers battling it out for the honour.

By early next month, FedEx is expected to have 12 new weekly flights to the mainland finalised under the ASA's first two allocations of rights, which it will use to increase its presence in the Shanghai and Shenzhen markets.

Both round-the-world services will call at Shanghai, with the eastbound service transiting in Shenzhen on five of the six days a week.

According to the DoT, more than 148,000 tonnes of cargo was exported from China to the US by air last year, 65 per cent of which moved from Shanghai.

FedEx yesterday said its China export volumes grew 52 per cent year on year in the three months to last month, driving international express sales up 25 per cent.

Global sales grew 23 per cent for the quarter, to US$ 6.98 billion, with net profit soaring 158 per cent to $ 330 million.

"It was a great quarter," Mr Cunningham said, "one which continued our string of successes."

FedEx has been evaluating where to establish its future Asia-Pacific hubs for the past year and Mr Cunningham yesterday said the decision remained up in the air.

Earlier this year it signed a two-year extension to 2010 of a lease at its existing hub in Subic Bay, the Philippines. FedEx also signed a deal for the first right of refusal on a 42 hectare plot of land at neighbouring Diosdado Macapagal International Airport, the former Clark Air Force Base.

In December, it signed a framework agreement with the Guangzhou Baiyun Airport Authority to pursue "joint initiatives", widely interpreted as an interim step toward setting up an express handling centre at the city's new airport.

Mr Cunningham yesterday said the hub decision probably would be made within nine months, with the plan in place in about four years just as the new ASA grants the flexibility for US carriers to operate cargo hubs on the mainland.

"The part of ASA which allows you to have open skies becomes effective in 2007. The intent is to have the new hub operational by 2008 to 2010," Mr Cunningham said.

"We are hoping to make the decision on the hubs - whether it's Subic-Guangzhou or Clark-Guangzhou - by next summer," he said. "We need to build into it because from our hub we connect 19 major markets. With the 2006 application we are starting that process."
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Old September 30th, 2004, 03:18 PM   #14
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Qatar Airways Expands Chinese Operation With New Route

DOHA, Qatar, Sept 30 Asia Pulse - Qatar Airways is expanding its Chinese operation, with the addition of Beijing as the latest destination.

One year after the launch of scheduled flights to Shanghai, Qatar Airways is adding its second gateway in China, one of the world's fastest developing economies.

From November 25, three return flights a week will operate non-stop between Doha, the capital of the State of Qatar, and Beijing, capital of the People's Republic of China.

The route will be operated with a wide-body Airbus A330-200 in a two-class configuration - 12 Business and 226 Economy.

Beijing is China's political, economical, cultural and educational center, as well as the country's most important center for international trade and communications.

Qatar Airways Chief Executive Officer, Akbar Al Baker said China was an economic powerhouse that would revolutionize global trade and industry in the years to come.

"Ever since the launch of our Shanghai flights last year, the route has proved very popular and it was only natural for us to extend our Five Star service to business and leisure travelers by introducing Beijing as our second destination in China," he said.

"Flying between the capitals of Doha and Beijing will also enhance cultural links between the two cities."

The route is also aimed at attracting passengers from feeder markets such as Europe and the rest of the Middle East and Africa via Doha.

Beijing becomes Qatar Airways' 9th destination in the Far East, which already includes Shanghai, Seoul, Bangkok, Singapore, Cebu, Manila, Jakarta and Kuala Lumpur.

Beijing is to host the next Olympic Games in 2008.

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Old October 4th, 2004, 04:49 PM   #15
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Copyright 2004 South China Morning Post Ltd.
October 4, 2004

Air China gets 69pc stake in CNAC
Bei Hu

Stock market-bound Air China, the mainland's flagship carrier, will hold 69 per cent of Hong Kong-listed China National Aviation Company (CNAC).

China National Aviation Corporation (CNACG) has transferred its stake in CNAC as a capital contribution to the joint stock holding company set up last month to be Air China's listing vehicle, CNAC announced through the stock exchange yesterday.

Sources said the injection was done to give Air China's proposed US$ 500 million to $ 600 million international initial public offering later this or next year a more attractive valuation.

A provider of aviation-related services such as airline operations, airport ground handling and logistics, CNAC owns 43 per cent of Hong Kong Dragon Airlines among others.

In exchange for the equity interest in CNAC, CNACG has become a 22.5 per cent shareholder in Air China, which has a registered capital of 6.5 billion yuan.

China National Aviation Holding (CNAH) will own the rest of Air China, whose assets include a fleet of 136 aircraft serving 69 domestic and 34 international destinations.

The restructuring has established Air China as the principal passenger and air cargo transport unit of CNAH, which the central government created in 2002 in an effort to consolidate the fragmented mainland civil aviation industry into three airline groups.

CNAH encompasses Air China, CNAC and China Southwest Airlines.

Air China has obtained a waiver from the Hong Kong Securities and Futures Commission from making a mandatory cash offer under the takeover code for the CNAC shares it does own, the listed company said in the statement.

CNAC is 31 per cent owned by public investors.
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Old October 6th, 2004, 05:29 AM   #16
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Japanese airlines bank on China growth
Winning double seen in business ties and mainland tourists, writes Julian Ryall

25 September 2004
South China Morning Post

Chinese airlines may be in for a bumpy ride on their routes to Japan as Japanese carriers look to tap into a market that they all agree has huge potential.

With China's economy booming and more and more Japanese companies setting up subsidiaries or alliances across the water, Japan Airlines and All Nippon Airways are expanding their networks and setting up travel agencies for Chinese tourists wanting to come in the opposite direction.

"From three years ago, when Tokyo's Narita Airport added a new runway, both JAL and ANA increased the frequency of their flights to China, but those flights were very badly hit by the Sars outbreak," said Osuku Itazaki, a transport industry analyst for Credit Suisse First Boston in Tokyo.

"Even now they are operating at only 50 per cent of capacity and while that level may not be profitable at the moment, both companies are expecting rapid growth again in the future," he said.

Including code-sharing arrangements, JAL operates 218 flights a week on 27 routes to 13 cities in China, as well as Hong Kong. The next route is due to link the new Chubu International Airport, near Nagoya in central Japan, with Guangzhou in February, according to Kenichi Ando, assistant public relations manager.

"We expect more passengers and revenue from our China routes because it is such a large market and JAL is working closely with the Japanese government on the Visit Japan campaign," Mr Ando said.

The new Chubu-Guangzhou route, however, is designed to meet an anticipated surge in demand after Toyota Motor sets up a joint venture to produce vehicles in the city.

JAL already code-shared its China operations with China Eastern Airlines and China Southern Airlines because it did not have sufficient aircraft to meet demand on all the routes, Mr Ando said, describing the arrangement as a win-win situation that gives both sides access to new passengers and new sources of revenue.

The airline was also expanding its chain of travel agencies across China, he said.

"We are continuing our research into the China market and in a few years we would like to provide new services if the situation permits," Mr Ando said.

ANA is similarly optimistic, more than doubling the number of China flights to 112 a week, including 21 to Hong Kong, from three years ago, according to Rob Henderson, assistant public relations manager.

"China is a vast potential market for us as it has a huge population and even if only a fraction of those people want to come to Japan, that's still a very big market," Mr Henderson said.

"And if you factor in all the Japanese companies investing in the coastal zone, that's an awful lot of business passengers and freight going backwards and forwards between the two countries.

"But it's a lot more than that for ANA. China is a very important neighbour and there are a great number of cultural ties. ANA president Yoji Ohashi was born in China and remembers as a child the kindness of the Chinese people, so we have a long and happy relationship with the country."

And while more flights will undoubtedly be good news for tourists and business people, other airlines are keeping a close eye on the situation.

"We have 80 flights to five Japanese cities a week from Hong Kong and we are very competitive on our routes, but we will closely monitor this situation," said May Lam, a spokeswoman for Cathay Pacific Airways.

"We are always looking to strengthen our network of existing routes and add more frequency and more destinations.

"And while it's true that the environment is becoming more and more competitive, we are up for that competition."

The investment that Japan's airlines are making now may not reap returns for up to five years, according to Mr Itazaki. However, by that time, the number of Chinese visitors to Japan is expected to have risen dramatically.

"The China route looks like it will be a very profitable one for airlines and if they can take advantage of passenger and freight numbers then business will be good on those routes," he said.
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Old October 11th, 2004, 06:30 PM   #17
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Monday October 11, 1:37 PM
China Southern to Begin Daily China-Australia Flights

SYDNEY, Oct 11 Asia Pulse - To meet the growing demand for leisure and business travel between China and Australia, China Southern Airlines, China's largest airline, has announced that it will increase its Boeing 777 service between Australia to China from four flights per week to a daily service, starting from December 2, 2004.

Effective November 5th, China Southern will add a fifth weekly Boeing 777-200 flight from Sydney to Guangzhou, departing every Friday morning.

This will increase to a daily Sydney service starting December 2 for the remainder of the northern summer schedule period, which ends March 26, 2005.

The airline's Thursday and Sunday services from Australia will continue to originate in Melbourne, then via Sydney to Guangzhou.

The new schedule will provide extra capacity between Australia and China during the peak Christmas/New Year and Chinese New Year periods.

Business travel between Australia and China is growing strongly and China is becoming increasingly popular with Australian tourists, with significant growth occurring in both package holiday programs and independent leisure travel.

ASIA PULSE
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Old October 12th, 2004, 03:46 AM   #18
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China Southern mulls flying on 3 routes to Delhi

New Delhi , Oct. 11

THE Chinese airline, China Southern, is examining the possibility of operating flights to India. The President and Senior Pilot, China Southern Holding, Mr Li Jian, told presspersons that the airline would like to operate on three routes from China to Delhi.

The three routes being examined for launching flights include Kashgar and Delhi apart from connecting Beijing to the Indian Capital. "This time we are in India to study the situation. We plan to make another trip here to firm up air links between India and China," Mr Li Jian, said on the sidelines of a luncheon meeting organised by CII.

Meanwhile, another Chinese airline, China Eastern is to increase the frequency of weekly flights between India and China from the present two to three from November this year.

http://www.thehindubusinessline.com/...1200670300.htm
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Old October 12th, 2004, 08:18 AM   #19
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(Press release)


Tokyo September 8: Japan Airlines (JAL) and Hainan Airlines (HU) today announced plans to launch a new twice-weekly code share flight between Kansai International Airport, Osaka and Haikou, Hainan Island, from October 31.

In November last year JAL and Hainan Airlines opened daily connection flights between Beijing and Hainan Airlines' destinations of Chengdu, Chongqing and Xi'an, for the benefit of JAL passengers flying to and from these cities from Tokyo, Osaka and Nagoya via the Chinese capital. This service, the "West China Express" offers connecting passengers smooth transfers, including the use of lounges.

Hainan Airlines will inaugurate service from Kansai to Haikou from September 16 and the code share agreement with JAL will become effective from October 31. The additional, new code share agreement between JAL and Hainan Airlines provides further Japan-China route enhancement for JAL and its customers. The addition of Haikou to JAL's Japan-China network increases the number of cities served in China to 13. Including the new code share flights with Hainan Airlines, JAL will offer a total of 234 flights a week, more than any other airline operating between Japan and China.

http://www.cn.jal.com/cgi/en/contents/835/

Hainan Airlines is China's 4th largest airline after China Southern, China Eastern and Air China, it's also the most profitable airline in Mainland China.
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Old October 12th, 2004, 11:29 AM   #20
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Posted: 11 October 2004 2235 hrs

ST Aerospace, China Eastern Airlines in aircraft repair tie-up

By Chan Hwa Loon, Channel NewsAsia


Singapore Technologies Aerospace and China Eastern Airlines are setting up a US$98 million, or S$167 million aircraft repair facility in Shanghai. The joint venture called Shanghai Technologies Aerospace Company or Starco will start operations in the 4th quarter of this year.

ST Aerospace owns 49 percent of Starco, while China Eastern Airlines owns 51 percent.

But ST Aerospace will operate and manage Starco, which will initially provide maintenance and modification services for both Boeing and Airbus aircraft from its facility at Shanghai's Hongqiao International Airport. - CNA
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