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Old July 5th, 2005, 02:02 AM   #461
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China Eastern Hldrs Approve Purchase Of 40 Airbus Planes
1 July 2005

SHANGHAI (Dow Jones)--China Eastern Airlines Corp. (CEA), one of China's major state-controlled airlines, said Friday its shareholders have approved its planned purchase of 40 aircraft from Airbus (ABI.YY).

In deals signed between October last year and April, the company ordered 20 A330-300 aircraft from Airbus for US$162.9 million-US$170 millioneach, five A319s for around US$200 million, and 15 A320 series planes for around US$830 million.

The company didn't disclose in its statement Friday the exact value of these deals, only saying "the actual prices are lower than previously disclosed."

The aircraft will be delivered from January 2006 to October 2008, according to previous statements from the Shanghai-based airline.

Its shareholders have also approved the company's plan to issue up to CNY2 billion in short-term notes.

China Eastern said last month it hopes to issue the notes in China within 12 months after its shareholders approve the plan.

China Eastern is one of the country's three biggest carriers, along with Air China Ltd. (0753.HK) and China Southern Airlines Co. (ZNH).
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Old July 5th, 2005, 03:40 PM   #462
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Business Times - 05 Jul 2005

FedEx makes 2nd Asia hub in southern China airport: report


HONG KONG - US logistics giant, FedEx, will sign an agreement early next month to make Guangzhou's Baiyun Airport in southern China its second Asia-Pacific hub, a report said on Tuesday.

Citing unnamed sources close to the deal, the Standard newspaper here said the Guangzhou Baiyun Airport Authority would spend up to 1.5 billion yuan (US$181 million) to build a warehouse and a runway for the company.

Construction would start in August next year and be completed in October 2008 if the deal is approved by China's State Council, or cabinet, and its aviation authority.

FedEx's other hub is at the US military's former Clark air force base in the Philippines.

In 2004, FedEx signed a framework deal with the Baiyun airport with a view of making it its sole Asia-Pacific hub, but it decided to adopt a dual-hub policy after the Philippines made concessions the keep the logistics company in the country, the newspaper said.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.
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Old July 5th, 2005, 07:04 PM   #463
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Here is some more information about the Fedex decision from the Hong Kong Standard :

FedEx seals deal for Baiyun Airport hub
Alman Loong
July 5, 2005


Costs have been the main issue in the year-long negotiations between FedEx and the Baiyun Airport Authority. AFP

FedEx, the United States courier and logistics company, will sign an agreement early next month to make Guangzhou's Baiyun Airport its second Asia-Pacific hub, according to a source close to the negotiations.

Under the agreement, the Guangzhou Baiyun Airport Authority would spend up to 1.5 billion yuan (HK$1.4 billion) to build a warehouse and a cargo runway for FedEx's use.

Provided the deal is approved by the State Council and the General Administration of Civil Aviation, construction of the FedEx hub would start in August next year.

The target date for completion is October 2008.

FedEx would only say it is considering how best to expand its hub operations in Asia and exploring a number of ways to ensure flexibility in future.

Last year, FedEx signed a framework agreement with Guangzhou's new airport with the intention of making it its sole Asia-Pacific hub.

But the company decided to adopt a dual-hub policy after the Philippines made concessions to keep FedEx in the country. Among the privileges granted FedEx were ''seventh freedom'' rights, allowing it to serve foreign destinations out of the Philippines without first passing through the United States. FedEx's agreement to operate a hub at the Subic Bay Freeport Zone was extended until 2010.

The company also signed an option, good until 2008, on land for possible expansion at the former Clark air force base nearby, but the agreement with Baiyun is believed to make the exercise of the option unlikely.

A FedEx hub in Guangzhou is seen increasing the airport's cargo throughput by 600,000 tonnes per year. Baiyun Airport's freight throughput increased 16.2 per cent to 632,000 tonnes last year. In the first quarter of this year, it totaled 118,000 tonnes, up 1.5 percent from a year earlier.

FedEx says Guangzhou would make an ideal hub since it is within 4½ hours' flying time of most major Asian destinations. What is more, it is in the Pearl River Delta, China's fast-growing manufacturing powerhouse.

FedEx and the Guangzhou Baiyun Airport Authority have been in negotiations for more than a year and costs have always been the main bone of contention.

The American company was seeking concessions to offset what it says are the highest jet fuel prices in the region, and the second-highest takeoff and landing charges after Japan's.

Last year's Sino-US air services agreement allows for express couriers to establish hubs in the mainland.

FedEx's biggest rival, United Parcel Service, is said to be keen to acquire hub status in Shanghai, using it as a base to connect several cities in China with North Asia. UPS became the first express operator last year to link Guangzhou directly with the US when it launched a six-times-a-week service.

The first foreign freight operator to establish scheduled service to Guangzhou was Germany's Lufthansa.

UPS and Fedex have placed orders for the freighter version of the Airbus A380, which will have roughly double the capacity of the MD-11s that UPS now employs in Guangzhou.

DHL, meanwhile, said it plans to conserve its Asian hub at Hong Kong International Airport.

"We see Guangzhou as a gateway to China, but Hong Kong would still be our Asian hub,'' said Kelvin Leung, DHL's managing director for Hong Kong, South China and Macau.

He said DHL plans further capacity expansion of its SAR express center.
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Old July 6th, 2005, 05:48 AM   #464
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China, EU Sign Declaration On Aviation Cooperation - Xinhua
1 July 2005

BEIJING (Dow Jones)--China and the European Union have signed a joint declaration on bilateral cooperation in the aviation sector, according to state media.

China and the E.U. plan to hold negotiations on transport policy, infrastructure and investment, aviation safety and security policy, aviation technology and cooperation in aviation enterprise, the official Xinhua News Agency reported Friday.

The two sides will hold talks in the fourth quarter on cooperation in safety, security, and air traffic control, the report said, citing the declaration.
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Old July 6th, 2005, 05:49 AM   #465
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China gives green light for fifth private airline

BEIJING, July 1 (AFP) - Chinese regulators have approved the establishment of the country's fifth private airline, expected to be named Eastern Express, state media said Friday.

Eastern Express will be capitalized at 150 million yuan (18 million dollars), the Xinhua news agency reported.

The Junyao Group, a private conglomerate with interests in aviation, dairy farming and real estate, will hold a 53.33 percent stake in the new carrier, according to Xinhua.

The number of private carriers has increased following the government's decision to open the market for niche players in areas such a cargo and charter services.
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Old July 6th, 2005, 01:18 PM   #466
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Business Times - 06 Jul 2005

China Eastern shareholders approve plans for debt sale


(HONG KONG) China Eastern Airlines Corp, the nation's third-biggest carrier by sales, said shareholders approved plans to sell short-term bills to increase its cash, buy new aircraft and acquire assets from its parent.

The airline won approval to sell as much as two billion yuan (S$410.4 million) of short-term bills to raise funds and to cut finance costs, Shanghai-based China Eastern said on Monday. Independent shareholders also approved plans to buy 40 Airbus SAS planes valued at US$4.8 billion, and to buy assets of two domestic airlines from its parent for 985.7 million yuan.

China Eastern, Air China Ltd and the nation's other carriers are expanding their fleets as rising incomes make air travel affordable to more people. China's airlines have bought 168 aircraft this year valued at about US$16.8 billion from Airbus, Boeing Co and Brazil's Empresa Brasileira de Aeronautica, making the country the second-biggest market for planes in the region behind India.

The country's carriers may need 1,790 new planes valued at US$230 billion before 2023, according to Toulouse, France-based Airbus, the world's biggest maker of commercial aircraft.

China Eastern's fleet will expand by 58 per cent to 163 planes and its share of the country's aviation market will rise to 24 per cent from 19 per cent, after buying the assets of China Northwest Co and China Yunnan Airlines. The takeovers by state-controlled China Eastern were ordered by the Chinese government to prepare carriers for competition.

Air travel in the world's most populous nation is likely to increase by 8.2 per cent every year until 2023, as China's average annual economic expansion of 9 per cent in the past decade encourages more people to travel.

China Northwest and Yunnan Airlines will retain their catering, hotel and other businesses after the takeover. China Eastern Air Holding Co, the parent of China Eastern, will continue to hold the entire equity in each of the two companies, according to filings.

Shares of China Eastern have lost 20 per cent this year, compared with a 12 per cent drop on the Bloomberg Asia-Pacific Airlines Index of 14 stocks. - Bloomberg

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.
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Old July 6th, 2005, 04:17 PM   #467
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Chinese airlines to transport 28 million passengers from July to August
01 July 2005
Xinhua's China Economic Information Service

BEIJING, July 1 (CEIS) -- A total of 28 million passengers will be transported by Chinese airlines from July 1 to the end of August, up 15 percent compared with the previous year, predicted the General Administration of Civil Aviation of China (CAAC).

In the peak summer season, the demand and supply of market will be high, in terms of passenger and cargo. China plans to develop "red tourism" products, so passengers who go to visit the revolutionary sceinc spots will increase in next two months as many students have their summer vocation. Quite a few airports are already full, especially in famous tourism cities.

CAAC will spend more efforts in ensuring aviation safety by controling pilots' overwork, strengthening aircraft maintenance methods, quarantine of airports. All airline companies will also arrange charter flights in popular destinations.
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Old July 6th, 2005, 05:01 PM   #468
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Wednesday July 6, 3:35 PM
Shanghai Airlines Sees 1H Net Down By More Than 50% On Yr

SHANGHAI (Dow Jones)--Shanghai Airlines Co. (600591.SH) Wednesday said it expects its first-half net profit to fall by more than 50% from a year earlier because of higher jet fuel prices.

The Shanghai-listed airline is scheduled to report first-half earnings by the end of August. Its net profit in the first half of 2004 was CNY145.3 million.

Shanghai Airlines' net profit more than doubled in 2004 to CNY263.6 million from CNY91.9 million the previous year, as the demand for air transport increased rapidly. The airline's core revenue rose to CNY6.59 billion from CNY4.52 billion over the same period.

Earlier this year, Shanghai Airlines was one of six Chinese airlines that signed an order for a total of 60 of Boeing Co.'s (BA) new 787 Dreamliner airplanes.

China's biggest carriers include China Eastern Airlines Corp. (CEA), Air China Ltd. (0753.HK) and China Southern Airlines Co. (ZNH).
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Old July 7th, 2005, 06:19 PM   #469
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UPS inks first China hub deal as Q1 volumes double

SHANGHAI, July 7 (Reuters) - UPS Inc. , the world's top package carrier, signed an agreement on Thursday to set up a logistics distribution centre in China, getting the jump on rival FedEx as outbound volume doubled in the first quarter.

Ken Torok, Asia-Pacific head for United Parcel Service, said the Atlanta-based firm also planned to expand its fledgling domestic express service next year, pitting it against national monopoly China State Postal Bureau (China Post).

UPS's hub, designed to have an annual capacity of 200,000 tonnes, will be based at Shanghai's international airport and is expected to begin operations in January 2007.

UPS joins rivals including Dutch logistics firm TPG and Deutsche Post's DHL Express rushing to widen their footprint in a $1.5 billion market that industry executives expect to become the world's largest cargo market some day.

However, the domestic market is still dominated by China Post and local freight forwarders such as Sinotrans -- a situation foreign carriers have been chafing at.

Transport hubs -- such as the one UPS is envisioning in China's commercial stronghold Shanghai -- act as distribution centres by taking packages and shipping them on to their final destinations.

Torok said UPS' hub agreement was the first among foreign carriers. A Hong Kong newspaper this week reported that FedEx would sign its agreement for a hub to be based at Guangzhou Baiyun Airport in wealthy southern Guangdong province in August.

Torok declined to provide investment figures but said the centre was part of UPS's commitment to invest $500 million in China over the next two years.

"Amid all the incredible changes in China, we have to have a rock-solid foundation and we consider this to be part of that," he told reporters.

Torok would not specify precise figures, but said that the volume of outbound shipments had doubled in the first quarter when compared with the same period a year ago.

CLOSER TO THE ACTION

UPS now serves China from a hub in the Philippines.

But rocketing global trade with China -- which came to about $1 trillion in 2004 -- is driving demand for air freight, and the need to be closer to that trade.

Torok said UPS, known for its ubiquitous brown delivery trucks, would offer a domestic express service to customers by 2006. That service is currently only available to big clients, and on a contractual basis.

But UPS, which claims to control a fifth of the Chinese market, will only handle shipments heavier than 2 kilograms to avoid encroaching on China Post's monopoly, he said.

"The domestic service is the next phase of our strategy to further distance ourselves from our competitors," Torok said.

Torok said UPS will have more than 3,500 staff, 1,400 vehicles and 75 facilities within China by the end of the year, revising his earlier estimate of 1,700 staff given in April.

UPS said in December it will pay $100 million to end a 16-year agency relationship with partner Sinotrans and take over an international express delivery operation that spans more than 200 cities across China.

Just last month, U.S. trucker Yellow Roadway Corp. formed a Chinese joint venture in an effort to become a one-stop logistics shop for moving large volumes of cargo into and out of China.
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Old July 8th, 2005, 08:07 AM   #470
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China's Shandong Airlines to lease 3 Boeing 737-800s for 8 years
7 July 2005

BEIJING (AFX) - Shandong Airlines Co Ltd (SZB 200152) said it has made a deal with Shenzhen Financial Leasing Co Ltd to lease three Boeing 737-800 aircraft for eight years.

The company said in a statement that Shenzhen Financial Leasing has already paid Boeing for the three new planes.

Shandong Airlines did not give the deal's financial details.

One plane was delivered to the carrier last month with the remaining two expected over the next two months.

State media reported last month that Shandong Airlines' parent, Shandong Aviation Group, signed an agreement with Boeing to buy 15 Boeing 737-700/800 aircraft. Seven of the planes will be delivered this year with the rest to arrive next year.
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Old July 8th, 2005, 06:19 PM   #471
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UPS signs MoU to establish international hub in Shanghai airport

HONG KONG, July 7 (AFP) - US logistics giant United Parcel Service (UPS) said Thursday it has signed a memorandum of understanding to establish an international hub at Shanghai's Pudong International Airport in 2007.

The company also said it will introduce a domestic express service in China.

Effective July 10, UPS will also begin a direct service between Shanghai and Japan, which will fly from Shanghai to Osaka and then to Anchorage in Alaska five times a week.

It will also begin a direct service between Shanghai to Tokyo six times a week.

"The Japan flight service is viewed as an important step to consolidating the UPS network out of Shanghai prior to foundation of the hub in 2007," the company said in a statement.

When operational, the hub will handle at least 72 all-cargo movements per week, it said.

UPS domestic express service will be implemented in China over the next few months and that the service will gradually be extended to major cities within China, it said.

Ken Torok, president of UPS Asia Pacific, said the agreement showed its commitment to China. By the end of this year, UPS will have more than 3,500 employees in China, deploying more than 1,400 vehicles with 75 operational facilities.
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Old July 9th, 2005, 03:07 AM   #472
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Air France, China Southern in talks to create alliance

PARIS, July 6 (AFP) - Air France and China Southern have plans to combine some of their operations on routes between France and China, Air France said Wednesday.

"The collaboration is not yet in the form of a joint-venture. It would be premature to define it as such. Discussions are on-going," an Air France spokeswoman said.

A report in daily French business newspaper La Tribune, which cited an anonymous source in China, said Air France and China Southern were set to create a joint-venture for flights between Paris and Guangzhou, the capital of Guangdong region, and Paris and Beijing.

The combined company would also create links to regional airports in China via Guangzhou and Beijing, as well as to European destinations from Paris.

The Tuesday edition of French newspaper Le Figaro also reported on the joint-venture talks, with another meeting between the two companies planned for the end of July.

The tie-up would allow Air France to "cement our relationship and our routes (with China Southern)," an Air France source told Le Figaro.

La Tribune called the proposed deal a "win-win agreement" as Air France "would benefit from lower operating costs of China Southern while contributing higher revenues per unit."

"The target has been set, at least for the first stage of Paris-Guangzhou, for the beginning of next winter, end of October, or at the very latest during the summer period starting at the end of March 2006," the paper said.

The joint-venture would be the most significant alliance between a European and Asian airline, but also the most important long-haul tie-up for Air France with a Skyteam partner.

Air France and China Southern have already signed a code-share agreement in November 2003, meaning they already cooperate to share customers on some routes.

China Southern is set to join the SkyTeam airline marketing alliance next year. SkyTeam was established in 2000 by Air France and US group Delta Airlines.
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Old July 10th, 2005, 01:53 AM   #473
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Beijing Capital Airport awards information systems contract to Unisys - report
8 July 2005

BEIJING (AFX) - Beijing Capital International Airport has awarded Unisys Corp a contract to provide and integrate information systems at the city's new airport terminal, the China Daily reported.

Unisys will provide real time information about flight arrivals and baggage deliveries, while collating and storing data and centralizing other airport functions, the newspaper said.

No financial details were given in the report.

The new international terminal is being built in preparation for the 2008 Beijing Olympics and will increase the airport's passenger capacity to 60 mln from 27 mln, the newspaper said.
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Old July 10th, 2005, 03:56 AM   #474
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UPS To Offer Express-Package Service In China
7 July 2005

ATLANTA (Dow Jones)--In a further attempt to expand its network in China, United Parcel Service Inc. (UPS) said it plans to offer express-package service across much of the country by September.

The package-delivery company said in a press release Thursday the new operation will initially link 23 major metropolitan areas in China with next-day service. The contract-only service is currently available to selected customers in five metropolitan areas, with the balance to be implemented by September.

The new service won't have a material impact on the company's 2005 financial performance, UPS said.
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Old July 11th, 2005, 07:59 AM   #475
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Spanish Airline Launches Direct Barcelona-Shanghai Flight

SHANGHAI, July 11 Asia Pulse - A Boeing 747 plane with 320 passengers aboard landed at the Pudong International Airport in east China's Shanghai Municipality at around 5:56 p.m. on Saturday, marking the official operation of a newly launched air route between Shanghai and Barcelona of Spain.

The route, first direct flight between the two famous cities, was kicked off by Spain's Air Plus Comet, which just launched a passenger route between Madrid and Beijing five days ago.

The flight, numbered A7503 and currently operated weekly, leaves Bacelona at 10 p.m. local time on Friday and arrives Shanghai on Saturday afternoon. An additional flight will be added each Wednesday from October.

Return tickets of the economy class are priced at 549 euros, approximately 6,000 yuan (US$725) after tax, according to the airline company, which moved to tap the Chinese market shortly after its Spanish peer Air Europa launched direct passenger flights from Madrid to Beijing and Shanghai respectively on May 23 and 24.

The direct air links between China and Spain were widely expected to facilitate tourist and business communications between the two countries.

Currently, around 30,000 Chinese tourists go to Spain annually and the figure is expected to rise to some 200,000 as a result of an ambitious plan of the Spanish government to promote their tourist attractions in China.

(XIC)
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Old July 11th, 2005, 06:41 PM   #476
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Beijing Capital Plans To Issue Up To CNY1 Bln In Bills
10 July 2005

SHANGHAI (Dow Jones)--China's Beijing Capital Co. (600008.SH) said Monday it plans to issue up to CNY1 billion in 365-day bills.

The public infrastructure company said it will seek approval for the issue at a shareholders meeting on Aug. 11.

The Shanghai-listed company is a unit of the state-owned Beijing Capital Group Ltd., which is planning an initial public offering in the second half of this year, either in New York or Hong Kong.

At 0310 GMT, Beijing Capital Co.'s A shares were up 0.5% at CNY4.32.

China's central bank recently allowed companies to issue domestic short-term debt to institutional investors. Several companies including Air China Ltd. (0753.HK) and Huaneng Power International Inc. (HNP) have issued short-term bills earlier this year.

(Zheng Xiaolu contributed to this article.)
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Old July 12th, 2005, 08:56 AM   #477
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Beijing Capital June passengers up 24.1 pct yr/yr

HONG KONG, July 12 (Reuters) - Beijing Capital International Airport Co. Ltd. said on Tuesday that 3.36 million passengers passed through the airport in June, up 24.1 percent from same time last year.

That figure was higher than May's passenger volume of 3.31 million.

For the first six months, 18.72 million passengers passed through Beijing airport, up 19.7 percent from a year-ago period.

Cargo jumped 22.7 percent yer-on-year to 61,323 tonnes in June.

Beijing Airport shares were up 1.56 percent to HK$3.25 in mid morning trade on Tuesday, after racking up gains of 12.3 percent over the past month.

(US$1=HK$7.8)
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Old July 12th, 2005, 05:37 PM   #478
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Air China H1 passenger traffic up 13 pct yr-on-yr; June up 15.3 pct
12 July 2005

BEIJING (AFX) - Air China Ltd, one of the mainland's three largest air-carriers, said it carried a total of 12.59 mln passengers in the first half of the year, up 13 pct from a year earlier.

In a statement on its website, the Beijing-based company said for the month of June, passenger traffic rose 15.3 pct year-on-year to 2.24 mln.

Cargo throughput for the first six months rose 9.0 pct from the same period of last year to 340,889 tons, and was up 9.2 pct year-on-year at 57,374 tons for June alone.

Six-month passenger load factor increased by 3.3 percentage points from a year earlier to 71.9 pct, and was up 3.1 percentage points year-on-year at 73.6 pct for June.
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Old July 13th, 2005, 01:34 AM   #479
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Shenzhen-Hohhot air route to open
11 July 2005
Xinhua's China Economic Information Service

HOHHOT, July 11 (CEIS) -- A new air route between south China's Shenzhen City and Hohhot, capital of north China's Inner Mongolia Autonomous Region, is scheduled to be opened between July 15 and October 28 to meet with growing number of holiday makers to northern grasslands.

According to the regional civil aviation department, Boeing 747- 300 from the Shenzhen Airlines will fly on the route every Monday, Wednesday and Friday.

The flight will take off at 13:50 from Shenzhen and arrive at Hohhot at 16:50. The return flight will take off at 17:40 from Hohhot and arrive at Shenzhen at 20:40.
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Old July 13th, 2005, 01:36 AM   #480
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Kunming-Shangrila-Lhasa route opens
11 July 2005
Xinhua's China Economic Information Service

KUNMING, July 11 (CEIS) – Starting from mid-July, there will be a regular flight on the Kunming-Shangrila-Lhasa route every day, sources of East China Airline Yunnan Branch disclosed.

The flight will take off from Kunming, capital of Southwest China’ s Yunan Province at 6:40, stop over Shangrila and then arrive in Lhasa at 10:20. For return, it will take off at 11:10 from Lhasa, stop over Shangrila and arrive in Kunming at 14:50.

The regular flight will be operated by East China Airline Yunnan Branch. For this route, the branch company had imported four B737-700 aircraft.
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