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Old March 2nd, 2005, 08:05 PM   #241
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Quote:
Originally Posted by hkskyline
China's Okay Airways Receives Its First Boeing 737-900
27 February 2005

SHANGHAI (Dow Jones)--China's Okay Airways Company Ltd. has received its first Boeing 737-900 airplane, Boeing Co. (BA) said in a statement posted on its Web site.

Okay Airways is China's first private airline and is expected to begin operating early next month, Boeing said in a statement dated Friday. Okay Airways has received its business license as a public aviation carrier from the Civil Aviation Administration of China, Boeing said.

Boeing said the new airline will begin with charter passenger services, domestic air cargo, and mail transport and express service from its base in Tianjin, a city in eastern China.

The Chinese airline has an agreement to sublease two 737-900s from Korean Airlines, the statement said. The airplanes are owned by Boeing Capital Corp, it said.

Okay Airway's 737-900s will be used primarily in passenger service, initially for routes such as Tianjin to Kunming, Changsha, Zhang Jiajie, Guilin, Hohhot, Taiyuan, and Harbin, Boeing said.

China's air industry is dominated by three major state-controlled international carriers - Air China, China Southern Airlines Group and China Eastern Airlines Group.

Beside the three major carriers, China's domestic air industry is serviced by various regional airlines usually backed by the provincial or municipal authorities.

Earlier this month, the state-owned China Daily reported that the CAAC was expected to issue a license to Okay Airways to operate as the country's first private line.

Three other airlines are expected to follow Okay Airways as private carriers: Shanghai-based Spring International Airlines, Chengdu-based Eagle Airlines, and Huaxia Airlines in Gansu Province, the newspaper said.
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Pics of China cities

Beijing topic[北京专题] Shanghai topic[上海专题] Fuzhou topic[福州专辑]
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Old March 3rd, 2005, 08:09 AM   #242
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China allows El Al Airlines to more than double weekly cargo flights
02 March 2005

BEIJING (AFX) - China's aviation authority has signed a memorandum of understanding (MOU) with El Al Airlines allowing the Israeli carrier to more than double its weekly cargo services to China, the regulatory body said.

Under the MOU signed between the General Administration for Civil Aviation of China (CAAC) and El Al, the carrier can boost its weekly cargo flights to China to 17 from seven, the official monthly industry journal said.

China will also consider opening up more destinations in the northeastern and western provinces to the Israeli carrier, it added.

CAAC has signed several bilateral air service agreements with its major trading partners, including the US, Germany, Australia and Hong Kong, since last year.

The landmark agreement signed with the US last July allows five additional airlines from each country to serve each other's markets by 2010, up from the existing four, with the number of weekly flights by each side rising to 249 from 54.
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Old March 3rd, 2005, 05:53 PM   #243
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Air Canada to fly non-stop from Toronto to Beijing
March 3, 2005

BEIJING (AFP) - Flag carrier Air Canada will start non-stop flights from Toronto to China's capital Beijing from June 2, Chinese state media reported.

It will be the first non-stop air route linking the eastern part of Canada with China, Xinhua news agency said, citing the Canadian company.

The Beijing-Toronto flight will take 13 hours, four hours less than an existing route that takes passengers via Vancouver, according to the agency.

The new route will also make it easier for Chinese to go to South America, as flights to that continent via Toronto will be four to 10 hours faster than traveling via Europe, Xinhua reported.
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Old March 4th, 2005, 12:00 AM   #244
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Jinan airport new terminal








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Old March 4th, 2005, 01:13 AM   #245
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Beijing sets limit on new aircraft purchases
Elaine Chan in Beijing
4 March 2005
South China Morning Post

China's aviation regulator yesterday said the mainland would cap the number of new aircraft purchases this year at 136 to avoid straining existing facilities.

But Yang Yuanyuan, director-general of the General Administration of Civil Aviation of China (CAAC), said while that number was large enough the cap did not translate into an outright ban on new purchases.

"Based on these [136 planes], any increase would have to be strictly controlled as there is an accommodation problem as far as how much our airports and public works management can handle," he said in Beijing yesterday.

Increased demand for air travel on the mainland has encouraged more aircraft purchases by domestic carriers such as China Eastern Airlines and China Southern Airlines. It has also boosted prospects for Airbus and Boeing, which have looked to the mainland market as a major source of growth.

CAAC reported that 112 million passengers and 2.7 million tonnes of freight were carried by mainland airlines in the first 11 months of last year, an increase of almost 42 per cent and 27 per cent respectively over the previous year.

Boeing said last month that demand for 200 to 300-seat aircraft would grow as more second-tier Chinese cities opened up to international services.

In January, officials sealed an agreement with the United States to buy 60 of Boeing's much-hyped 7E7 Dreamliners for a total of US$7.2 billion.

The aircraft, which has up to 300 seats, would be distributed among Air China, China Eastern, China Southern and three regional carriers - Hainan Airlines, Shanghai Airlines and Xiamen Airlines. The Boeing deal followed a US$1.4 billion purchase by China Southern of five Airbus A380 "super jumbos" and a US$1.7 billion deal by Air China for 20 of the 290-seat A330s.

Mr Yang said that if more aircraft purchases were approved this year, it likely would be for bigger planes.

In its annual report this year, CAAC said consolidation for mainland airlines and airports to help the industry compete better internationally was a major priority. Another was ensuring carriers improve safety standards.

Last year, Beijing slashed the value-added tax on aircraft imports by 33 per cent. Tax for imported aircraft with a load capacity larger than 25 tonnes was cut to 4 per cent from 6 per cent.
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Old March 4th, 2005, 01:29 AM   #246
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Shanghai to open air route to Uzbekistan
3 March 2005
Xinhua's China Economic Information Service

SHANGHAI, March 3 (CEIS) -- Shanghai will soon add an air connection with Tashkent, capital of Uzbekistan.

Ilyasov Rafik, general manager with Chinese office of the Uzbekistan Airways, announced here on March 2 that new twice-a-week flights between Shanghai and Tashkent will debut in April.

Meanwhile, the current flight between Beijing and Tashkent, which was opened some 12 years ago, will include Shanghai on March 9.

Rafik called the flights the "silk road of the air," saying they would greatly strengthen cooperation between the two nations in politics, economy, culture and tourism.

The official said that as a member of the Shanghai Cooperation Organization, Uzbekistan enjoys sound relations with China.

Local sources said Uzbekistan will soon set up consulate general in Shanghai and reach an agreement with the Chinese government on accommodating Chinese tourists.
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Old March 4th, 2005, 06:35 PM   #247
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FedEx to make decision on China hub - claim
4 March 2005
Airline Industry Information

Parcel shipping company FedEx is to make a decision on an Asian cargo hub in China by the end of the year.

The decision is to be made after the launch of the first direct FedEx connection between Europe and the Chinese mainland and it would help the company establish a firm hold in Asia, Reuters reported.

FedEx also said that it had been given tentative US approval for adding three weekly flights from China "shortly after" 25 March 2006.
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Old March 4th, 2005, 11:01 PM   #248
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any overviews of jinan airport general huo???
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Old March 5th, 2005, 12:43 AM   #249
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Jinan Airport's Overview:
http://www.airliners.net/open.file/598193/L/
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Old March 6th, 2005, 08:59 AM   #250
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Sunday March 6, 2:04 PM
Malaysia Airlines launches route to China's Xian

KUALA LUMPUR (AFP) - National carrier Malaysia Airlines said it will mount two weekly flights between the Malaysian capital Kuala Lumpur and Xian in China from this month.

Malaysia Airlines in a statement said a two-class configured Airbus A330-200 aircraft would be used on the route, providing a total weekly capacity of 458 seats in each direction, from March 15.

Xian becomes Malaysia Airlines eighth scheduled service destination in China after Hong Kong, Guangzhou, Beijing, Shanghai, Xiamen, Chengdu and Kunming.

"The new link is in line with Malaysia Airlines' continued effort to strengthen its market presence in China," it said.

With the addition of Xian, the carrier operates 66 weekly flights between Malaysia and China.

Malaysia Airlines on Monday announced its net profit for the nine months to December rose 30.1 percent to 216.90 million ringgit (57 million dollars) on higher air traffic demand.

It said short-haul regional travel was likely to gather pace as new low cost carriers expand their operations.
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Old March 6th, 2005, 02:45 PM   #251
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WOW!!! I've only been to Hong Kong's airport.. i thought it was nice.. hope to be on the other airports later...
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Old March 6th, 2005, 06:43 PM   #252
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INTERVIEW-China's Hainan Air back in profit in 2004

BEIJING, March 6 (Reuters) - China's Hainan Airlines Co. Ltd., part owned by financier George Soros, climbed back into the black in 2004 and is looking at doubling its fleet size to 200 aircraft by 2010, the group's chairman said on Sunday.

The group's listed unit, the carrier based on the sun-drenched resort island of Hainan, had made a 2004 net profit of 200 million yuan to 300 million yuan ($24 million to $36 million), group chairman Chen Feng told Reuters in an interview.

It lost 1.27 billion yuan in 2003 because of the effects of the deadly flu-like Severe Acute Respiratory Syndrome, which ravaged China's airline industry in the first half of 2003.

"We had an exceptional year," the ebulient executive said seated in a hotel room in Beijing, where he was attending the annual meeting of parliament.

Revenue last year had been 8 billion to 9 billion yuan, up from 5.33 billion in 2003, he said.

The company was currently restructuring after absorbing three smaller carriers, and the airline would change its name to Grand China Air by the end of the year, Chen said.

Part of the seven-year restructuring plan, begun last year, would be the opening of more routes and the addition of new aircraft.

"We're too small," said Chen. "We want 200 aircraft. If we're too small there's not much we can do."

That would represent big potential orders for aircraft makers Airbus SAS and Boeing Co.

Hainan Air has China's fourth-largest fleet of civil aircraft, just over 100 aircraft. China Southern Airlines Co. Ltd., China Eastern Airlines Ltd. and Air China are all bigger.

Hainan Air was also is talking to foreign and domestic strategic investors, he said, and could not rule out an overseas listing as part of the reorganisation. He gave no details.

Chen added that Hainan Air had already won approval to start flights to the United States, though he was coy on when those would begin or what other international routes it was eyeing.

"We'll fly to wherever we're allowed," he said with a laugh.

Once mainly a domestic airline, Hainan Air has spread its wings to include Bangkok, Kuala Lumpur and even Budapest.

But Chen ruled out looking overseas for acquisitions. The airline had said it was going to buy a U.S. carrier.

"The domestic market is so good. Why should we go shopping overseas?" said 52-year-old Chen, who took his first flight when he was 15, in a Soviet-era biplane. "The U.S. market is too terrible anyway."

($1=8.276 yuan)
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Old March 7th, 2005, 06:57 AM   #253
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Hainan Air in talks with strategic investors
March 7, 2005

Hainan Airlines, whose biggest shareholder is US financier George Soros, is in talks with foreign and domestic investors as it seeks capital to expand, chairman Chen Feng said.

The company plans to announce a "major capital restructuring plan" this year that will include a private placement of shares to strategic investors, Chen said, without naming the investors.

Hainan Air and other mainland airlines are expanding as rising incomes and trade growth spur demand for leisure and business travel. China's air passenger traffic is likely to grow 7.3 percent annually until 2023, faster than the global average of 5.2 percent in the same period, Boeing forecasts.

"Introducing strategic investors will help increase working capital, lower costs and debt, and help the development of the company," Chen said.

Hainan Air's B shares have dropped 30 percent in the past year, compared with a 21 percent decline in the Shanghai composite index. The company's yuan-denominated A shares are down 36 percent in the past year.

Hainan Air, based on the southern island of Hainan, operates more than 500 routes in China and flies to Asian cities such as Seoul, Hong Kong and Osaka. The company started services to the Hungarian capital Budapest in August and said the same month that it may start flights to the United States as early as this year as part of plans to expand outside Asia.

The company reported net income of 127.7 million yuan (HK$120.4 million) for the first nine months of 2004, rebounding from a 950.4 million yuan loss a year earlier, when the SARS epidemic damped travel demand. Sales jumped to 6.1 billion yuan, from 3.6 billion yuan a year earlier.

Hainan Air has "largely completed" an operational restructuring and is now focused on new investment, Chen said. He forecast China's aviation industry will grow by 18 percent annually for the next five years.

The company will receive part of a 60-plane, US$7.2 billion (HK$56.16 billion) order for Boeing's 7E7 planes that will be shared between six Chinese carriers, spokesman Lu Guangwei has said. China's government-owned airlines may buy 2,293 aircraft over the next 20 years worth US$183 billion, Boeing said.

Hainan Air's shares plunged on January 31 after the company said it misreported 2002 and 2003 results because of accounting errors.

BLOOMBERG
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Old March 8th, 2005, 07:56 AM   #254
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Air Europa to Begin Direct Flights Between China, Spain in May

BEIJING, March 8 Asia Pulse - The Spanish-based Air Europa announced here Monday that it will open direct flights from Beijing to Madrid on May 23, and direct flights from Shanghai to Madrid on May 25.

The direct flights will further promote bilateral tourism by reducing flying hours and provide more convenience for passengers, said Jose-Pedro Sebastian de Erice, Spanish ambassador to China.

He said Spanish embassy and consulate in China will provide easier and more convenient visa-issuing procedures, such as on-line application system.

The new route will also enable Chinese passengers to transfer to north Africa and South America via Madrid. Airline company will provide free accommodation for them, said Daniel Li, China area representative of Air Europa.

Air Europa now flies to countries in Europe, Africa and South America. Last year the number of inbound travelers and foreign currency tourism income in Spain ranked the second in the world.

(XIC)
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Old March 8th, 2005, 08:04 AM   #255
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Xiamen Airlines To Purchase 15 Boeing Aircraft
07 March 2005
(From THE ASIAN WALL STREET JOURNAL) By Bruce Stanley

BEIJING -- Xiamen Airlines, a regional carrier based in southeastern China, has committed to buy 15 Boeing 737-800 aircraft in a deal valued at around $615 million.

The planned purchase marks another success for Boeing Co. in China, where the Chicago-based aerospace company and its chief rival Airbus of Europe are locked in a struggle to dominate one of the world's fastest-growing aviation markets. Boeing, which announced a milestone sale of 60 Boeing 787 Dreamliners to Chinese airlines on Jan. 28, predicts that China will need 2,293 new commercial aircraft over the 20-year period ending 2023.

The average catalog price for a 737-800 is $65.5 million, but few airlines pay the full sticker price. Airlines and manufacturers alike usually are reluctant to disclose actual purchase prices. However, Xiamen Airlines President Wu Rongnan disclosed that his company is paying $41 million for each plane including engines, suggesting a discount of 37%.

Boeing spokesman Mark Hooper couldn't confirm the sale or its specific details but said that a discount of this size 'wouldn't necessarily be unusual.'

Xiamen expects to take delivery of the 737-800s next year and in 2007 as part of an effort to upgrade its fleet. The airline has signed a letter of intent for the purchase and expects to complete a sales contract with Boeing later this year, Mr. Wu said.

Xiamen flies 29 planes, all of them Boeings. It plans to use the new short-range 737-800s on domestic routes as well as flights to Southeast Asia, Mr. Wu said.

China-based airlines must obtain permission from the Civil Aviation Administration of China for purchases of aircraft. Mr. Wu said Xiamen already has obtained approval for the 15 Boeing 737-800s as part of a CAAC-approved package of 40 new planes that it aims to buy during the five years ending in 2010.

Xiamen Airlines is owned 60% by China Southern Airlines, based in Guangzhou, and 40% by a state-owned enterprise in Xiamen.
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Old March 8th, 2005, 09:50 PM   #256
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Tuesday March 8, 5:23 PM
Hong Kong's Dragonair and Air China expand code-share deal to include Beijing

AP - Dragonair, Hong Kong's No. 2 carrier, said Tuesday it has expanded a code-sharing agreement with Air China Ltd. so that they can sell seats on one another's flights to Beijing.

Under the new agreement, effective March 27, passengers flying with Dragonair will be able to take any of the six daily Air China flights to Beijing in addition to the eight flights operated by Dragonair, the airline said.

"The expanded code-share agreement provides even greater flexibility and choice to our customers," said Dragonair's Chief Executive Stanley Hui.

The two airlines' current agreement already covers the southwestern cities of Chengdu and Chongqing and the northern cities of Dalian and Tianjin, providing their passengers with more flight options on those routes.

Dragonair has been enhancing its co-operation with Chinese carriers as it faced keen competition from Hong Kong's biggest carrier, Cathay Pacific Airways, on routes to Beijing.

Cathay only got back into the mainland China market in late 2003 after a 13-year absence, posing a threat to Dragonair, which has long specialized in services between Hong Kong and the mainland.

The airline resumed cargo operations in Shanghai in January and in the southeastern city of Xiamen last month.
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Old March 9th, 2005, 05:16 PM   #257
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CAAC caps new aircraft purchases for 2005
08 March 2005
Business Daily Update

China's aviation regulator will cap the number of new aircraft purchases this year at 136 to avoid straining existing facilities, announced the director-general of the General Administration of Civil Aviation of China (CAAC) Yang Yuanyuan.

But the cap did not translate into an outright ban on new purchases.

"Based on these (136 planes), any increase would have to be strictly controlled as there is an accommodation problem as far as how much our airports and public works management can handle," Yang said.

Increased demand for air travel on the mainland has encouraged more aircraft purchases by domestic carriers such as China Eastern Airlines Corp and China Southern Airlines Co Ltd. It has also boosted prospects for Airbus and Boeing, which have looked to the mainland market as a major source of growth.
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Old March 9th, 2005, 05:17 PM   #258
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Airbus Sees China Plane Orders At US$230B In Next 20 Yrs
08 March 2005

HONG KONG (Dow Jones)--Airbus (ABI.YY) said Tuesday it expects China will need to place orders totaling US$230 billion to meet demand for 1,790 passenger and cargo aircraft over the next two decades.

"Air transport will become even more essential as a facilitator of China's strong economic growth than in the past, both in passenger and freight traffic," Laurent Rouaud, Airbus vice president for market forecasts & research, told a news conference on airline industry trends.

Rouaud said China's demand for small twin-aisle aircraft is expected to be 440 planes over the next 20 years.

Chinese carriers have increasingly divided their purchases between Airbus and Boeing Co. (BA) after years of dominance by Boeing. China is expected to have the fastest-growing demand for passenger jets over the next 20 years, becoming the world's No.2 market after the U.S.

Over the next 10 years, Airbus expects passenger traffic in China to rise 9.1% a year and the country's freight traffic to increase 9% annually.

Rouaud said the trend will necessitate aircraft in all market segments and, from Airbus's perspective, the 100-seater A318 to the 555-seater A380.

"Air traffic and aircraft demand could be further stimulated by the low-cost carriers in the region," he said.

Globally, Airbus expects airlines to require more than 17,300 new aircraft between 2004 and 2023.

Airbus is a joint venture between European Aeronautic Defence and Space Co. (5730.FR) and BAE Systems PLC (BA.LN).
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Old March 11th, 2005, 06:35 PM   #259
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BCIA to expand its Tianjin airport
11 March 2005
Business Daily Update
China Daily Information Company

Beijing Capital International Airport Group (BCIA), one of the top airport operators in the country, will invest 1.86 billion yuan (US$224.73 million) to expand its subsidiary airport in Tianjin, Xinhua News Agency reported.

The project, scheduled to begin in the first half, includes a new 60,000 square meter terminal, a 60,000 sq m parking lot and the expansion of an existing runway.

The move will allow the Tianjin airport to handle nine million passengers, 250,000 tons of freight and 66,000 aircraft movements per year by 2015.

BCIA is also the parent of Beijing Capital International Airport Co Ltd.
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Old March 13th, 2005, 12:04 AM   #260
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The battle for parcel supremacy
China represents the largest and most exciting opportunity in decades for package delivery companies

By ANDREW WARD
09 March 2005
Financial Times

Whenever David Abney looks up from his desk on the executive floor of United Parcel Service's headquarters in Atlanta, he sees a large map of China mounted on the wall. "I have it right in my line of sight," he says. "It reminds me and visitors to my office of the size of the place and the opportunity it provides for us."

As president of the package delivery company's international business, Mr Abney is quick to stress that Europe, South America and the rest of Asia are also important markets. But the fact that only China is granted its own map shows where his priorities lie.

"China is the largest and most exciting opportunity in the 30 years I've been with UPS," he says. "It's not a case of 'should we' or 'can we'. If you're going to be a global company in future you absolutely have to be a player in China."

Over the past few months, UPS has committed an additional Dollars 600m of investment in China as it vies with rivals FedEx, DHL and TNT for leadership of the market. The increased spending will expand the company's distribution network and secure full control of its express delivery joint-venture in the country.

China is becoming an increasingly important source of growth to UPS as the US market slows. The company's export volume out of China more than doubled last year, compared with a 23 per cent increase in the whole international business and 6.6 per cent in the US.

"In the past, UPS has relied on its domestic package business to drive growth," says Satish Jindel, president of SJ Consulting, a transport consultancy. "But last year's weak performance in the US showed it must focus more on international business - especially in China."

UPS is expanding in the country on two fronts. The first is its traditional package business, shuttling small parcels between China and the rest of the world. The second is supply chain services, handling the export of larger-scale cargo from Chinese manufacturers to overseas markets.

Last December, UPS agreed to pay Sinotrans, its Chinese partner, Dollars 100m to take full control of their express delivery joint venture when Beijing relaxes foreign ownership rules at the end of this year. The deal will make UPS the first foreign company in the sector to wholly-own its Chinese operation. "Having full control will give us more flexibility in making investments and long-term strategic decisions and will give our brand a stronger presence," says Mr Abney.

Meanwhile, the supply chain management business announced plans last month to increase its number of Chinese warehouses from 40 to 60 within two years. The facilities distribute goods such as textiles, technology and auto parts for import and export.

However, Kurt Kuehn, UPS's senior vice-president of sales and marketing, says building a network inside China is only half the challenge. Just as important is connecting it to the rest of the world. "Anyone can build a warehouse in China," he says. "But it's useless unless you can get the goods to market in North America and Europe."

UPS believes it offers a more comprehensive global service to Chinese customers than any of its rivals. FedEx lacks the international freight-handling capability that UPS secured through its acquisition of Menlo Worldwide Forwarding last year, while DHL and TNT are relatively weak in North America. "We have the best network in the US and a powerful presence in Europe, so we can connect China to the rest of the world better than our more regionally-focused competitors," says Mr Kuehn.

DHL and FedEx, however, both have important advantages over UPS. DHL, owned by Deutsche Post, was the first foreign package delivery company to enter China in 1986 when it formed its own joint-venture with Sinotrans.

While UPS and FedEx are limited to international deliveries in and out of China, DHL is the only one allowed to make domestic shipments. This will soon change as World Trade Organisation rules force Beijing to liberalise but DHL's 37 per cent share of the local market will be difficult to catch. FedEx, meanwhile, has had the best air access to China since its acquisition of Flying Tigers, an international cargo airline, in 1989. The company will this month increase its number of weekly flights to the coun try to 23, compared with UPS's 18. Both companies were recently awarded an additional six landing slots in China with the promise of a further three each next year, following an aviation agreement between Beijing and Washington. "We fly into three different Chinese cities: Shenzhen, Beijing and Shanghai," says David Cunningham, FedEx's senior vice-president for Asia-Pacific. "Nobody else does that." In addition to its direct flights between the US and China, FedEx connects China to the rest of Asia through its Subic Bay hub in the Philippines and this month launched a service from Shanghai to Frankfurt - the first direct cargo service between China and Europe.

The battle for dominance in China is part of a global parcel war raging between the package delivery giants, with DHL challenging UPS and FedEx in North America, while the US pair take on DHL and TNT in Europe.

But the companies understand that they cannot win their battles elsewhere in the world without a strong presence in China.

A CORPORATE CULTURE TO DIGEST One day in January this year, a Chinese delegation visited the Atlanta headquarters of United Parcel Service to negotiate a business deal over a lavish Chinese meal. The meeting was a disaster as UPS executives committed a series of cultural gaffes that risked causing grave offence to their guests. Blunders included using first names instead of the formal titles favoured by Chinese businessmen and handing out clocks as gifts - a symbol of impending death in China. Fortunately for UPS, the meeting was a role-playing exercise designed to familiarise its executives with Chinese business culture. About 100 company officials attended the etiquette lesson, organised by Chinese-born Shiao Dong Han, UPS's director for international retail services. Participants learned about the importance of building personal relationships with their Chinese counterparts before getting down to business. They were also advised to always leave a little food uneaten when dining in China because a clean plate implies hunger. Despite the executives' disastrous performance, Mr Han said UPS's corporate culture was well-suited to business in China because the company puts a premium on hard work and loyalty - qualities that are valued by the Chinese.
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