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Old November 14th, 2005, 07:33 PM   #581
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China Eastern Air Oct Passengers Up 71% On Year To 2.8M
14 November 2005

HONG KONG (Dow Jones)--China Eastern Airlines Corp. (CEA) said Monday it carried 71% more passengers in October than it did in the same month last year, an acceleration from September's on-year growth of 55%.

The Shanghai-based airline, which is one of China's three main state-owned carriers, carried 2.8 million passengers in October, up from 2.5 million in September. The company didn't provide year-earlier figures.

China Eastern said its domestic passenger numbers surged 93% from a year ago to 2.2 million in October after it consolidated the operations of two newly acquired airlines. International passengers increased 38% to 394,460.

The airline's passenger traffic for flights to and from Hong Kong and Macau, which isn't included in its international or domestic figures, fell 2.7% to 208,160 during the month.

The passenger load factor - the percentage of seats that were filled - rose 4.56 percentage points from a year ago to 75.16%. In September, the load factor was 71.87%.

The airline's cargo load factor in October was 54.75%, down from 56.06% in the previous month.

-By Jeffrey Ng, Dow Jones Newswires
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Old November 15th, 2005, 05:28 PM   #582
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HK's New World Devt unit to buy 2 aircraft for Asia charter service
15 November 2005

HONG KONG (AFX) - New World CyberBase Ltd, a unit of property developer New World Development, said it will buy two aircraft for a total of 34.08 mln usd for use in starting up an aircraft charter service for business travellers in China and other parts of Asia.

New World CyberBase chairman Simon Lo Lin Shing said in a statement the company is principally engaged in property investments, but it is looking at prospects of investing in other businesses "with good prospects should opportunities arise, which may or may not include information technology-related businesses."

He said China's aviation market offers lucrative opportunities, with passenger traffic in the country's airports showing 39 pct growth to 242.9 mln in 2004 from 174.3 mln in 2003.

He noted that existing travel options are still relatively unsatisfactory to business travellers.

"The directors expect that China and other countries in Asia will be the major areas in which the aircraft charter and management services will be provided by the group," he said.

Lo said the group intends to form a joint venture with two independent third parties, including a US company. He added that the aircraft acquisitions will be funded using proceeds of a rights issue and placement of convertible notes.

The company hopes to raise about 148.5 mln hkd from the sale of between 989 mln and 1.03 bln shares and between 100 and 200 mln hkd from the issue of convertible notes that will carry a coupon of 2.5 pct per annum, he said.

Lo also said that the company plans to sell 16.15 mln shares in New World Mobile at 2.575 hkd per share, the proceeds of which are to be used for general working capital purposes.
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Old November 19th, 2005, 05:15 PM   #583
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China agrees to buy 70 Boeing 737s as Bush visits

OSAN, South Korea, Nov 19 (Reuters) - China agreed to buy 70 planes from Boeing Co. in a deal worth up to about $5 billion before discounts as U.S. President George W. Bush prepared to lobby Beijing this weekend to slash a ballooning trade deficit.

The deal, confirmed by a U.S. official, is good news for Bush as he starts a visit to Beijing on Saturday to cajole Chinese President Hu Jintao into helping reduce a trade deficit that could top $200 billion this year.

Asia has emerged as a battleground in Boeing's effort to regain market share from Airbus SAS, which this year inked a similar contract to sell 10 jets to China. Airbus is controlled by European aerospace company EADS .

The rapidly expanding U.S.-China trade deficit is a perennial thorn in the side of the two country's relations. A senior U.S. official said on Saturday the U.S. Commerce Department had helped hammer out the deal.

"They will purchase 70 737s from Boeing," said the U.S. official, accompanying Bush on a four-nation tour of Asia.

"We frequently advocate on behalf of American companies."

Airlines commonly negotiate discounts with aircraft manufacturers that are not disclosed. The final price would also depend on what type of 737s were to be purchased.

The order -- to be shared among several carriers -- marked the latest in a series of coups in Asia for Boeing, which in January signed an agreement with China worth about $7.2 billion to sell up to 60 of its newest wide-body plane, the 787.

Boeing expects China's domestic passenger market to grow at an average annual rate of 8.8 percent over the next 20 years.

It foresees the country picking up 2,600 commercial jet aircraft over the next two decades at an estimated cost of $213 billion at 2004 prices, underpinned by strong growth in domestic flights and annual economic growth in excess of 9 percent.

But Saturday's deal appeared to fall short of media reports that China would agree to buy as many as 150 of the popular family of 737 aircraft, paying as much as $6.5 billion after discounts, the South China Morning Post reported.

Boeing's Beijing-based spokesman George Liu and its spokesman in Hong Kong, Mark Hooper, would not confirm the deal.

Officials from Air China Ltd. , China Southern , China Eastern Airlines Corp. Ltd. and Hainan Airlines Co. Ltd. either said they were unaware of new orders to be signed in the near future or were not immediately contactable.

However, Bush's comments in Japan this week praising Taiwan might affect the timing of an official announcement, the South China Morning Post quoted sources as saying. Bush held up Taiwan -- the self-ruled island over which China claims sovereignty -- as a model for Asia of a free and democratic society.
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Old November 20th, 2005, 05:38 PM   #584
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Boeing signs four-billion-dollar deal with China

BEIJING, Nov 20 (AFP) - Boeing on Sunday signed a deal to supply 70 737 aircraft to China in a deal worth four billion dollars, a company spokesman told AFP, as US President George W. Bush was in Beijing for an official visit.

The US aerospace giant will deliver the 737 700 and 800 models to eight major Chinese airlines between 2006 and 2008, Boeing China spokesman George Liu said.

The signing in Beijing is part of a broader deal to supply 150 737 aircraft, but the arrangement for the other 80 planes will be after 2008 and has not yet been finalised, Liu said.

"We are working with airplane customers to finalise that deal," Liu said.

He said the agreement for the confirmed first batch of 70 aircraft was worth four billion dollars.

The companies who will receive the 70 aircraft are Air China, China Southern Airlines, China Eastern Airlines, Shanghai Airlines, Xiamen Airlines, Shandong Airlines, Hainan Airlines and Shenzhen Airlines.

The deal was signed between Boeing and China's aviation authorities, including the China Aviation Supplies Import and Export Group -- the state aircraft purchasing agency.

The signing of the deal came as Bush held talks with Chinese President Hu Jintao at the Great Hall of the People, in which China's massive trade surplus with the United States was discussed.

Bush had signalled before the visit that trade issues would be high on his agenda, with one of his key concerns being the US trade deficit with China, which is expected to surpass 200 billion dollars this year.

The latest deal adds to an agreement in January in which Boeing sold 60 of its new generation 787 "Dreamliner" passenger jets to China for 7.2 billion dollars.

It is a further boost for Boeing in its battle against European rival Airbus for market share in the world's fastest growing major aviation market.

Boeing holds around 62 percent of China's aviation market. Airbus holds a 28-percent share.
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Old November 22nd, 2005, 05:30 AM   #585
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Old November 25th, 2005, 01:55 AM   #586
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Thursday November 24, 2:49 PM
Three Taiwan firms to invest in China's Yangtzu Express airline

TAIPEI, (AFP) - Taiwan's China Airlines (CAL), and shippers Yangming Marine Transport Corp and Wan Hai Lines have been given the green light to invest in China's Yangtze River Express Airlines Co, the Investment Commission said.

CAL was authorized to invest 40 million US dollars in the all-cargo company, a wholly-owned subsidiary of China's Hainan Air group, while Yangming Marine and Wan Hai Lines, will put up 19.20 million dollars and 9.60 million dollars respectively, the commission said.

CAL said in previous filings to the Taiwan Stock Exchange that it would acquire a 25 percent stake in Yangtzu for 312.50 million yuan (38.59 million US).

Despite longstanding political differences, China has become Taiwan's leading foreign investment destination with an estimated 80 billion dollars' worth of projects funded by the island's businessmen so far.
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Old November 25th, 2005, 06:20 AM   #587
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China extends domestic jet fuel surcharge to March 31 - Xinhua
24 November 2005

BEIJING (AFX) - China has extended a jet fuel surcharge to March 31 due to high international oil prices, the official Xinhua news agency reported.

The agency, citing a circular jointly issued by the General Administration of Civil Aviation of China (CAAC) and the National Development and Reform Commission, said the surcharge will remain unchanged at 20-80 yuan per passenger on domestic routes for each way, depending on the distance.

China's three major airlines - Air China, China Southern Airlines and China Eastern Airlines - have asked CAAC to increase the surcharge.

(1 usd = 8.1 yuan)
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Old November 26th, 2005, 04:34 PM   #588
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DHL Considers North Asia Hub In Bid to Expand in the Region
By Jeff Meyer
Dow Jones Newswires
26 November 2005

SHANGHAI -- DHL is considering building a hub for North Asia and will likely finalize plans early next year, executives at the logistics and express-delivery company said Friday.

"We are considering [a hub for North Asia] right now based on the economic growth, based on the trade volume," said Jerry K. Hsu, president of Greater China and Korea for DHL Express.

"North Asia represents the biggest opportunity for all of us in Asia-Pacific," Mr. Hsu said. "That plan will probably be finalized early next year," he said.

Locations under consideration for the hub include Nagoya, Japan; Incheon, South Korea; and cities in China's Yangtze River Delta region, Mr. Hsu said.

Government subsidies, congestion and labor costs are factors to be considered in the decision on where to locate the hub, he said.

Last month DHL said it was planning to invest $110 million to double the capacity of its air-freight hub in Hong Kong, which it calls the DHL Central Asia SuperHub. DHL, a unit of Deutsche Post AG, also has main hubs in Brussels and Wilmington, Ohio.

DHL's plans to expand its footprint in Asia reflect the keen interest of logistics companies in building their operations in the region. United Parcel Service Inc. said in July that it would open a hub in Shanghai. Also in July, FedEx Corp. said it would build a hub in the southern Chinese city of Guangzhou.

Possible locations for a DHL hub in the Yangtze River Delta include Shanghai, as well as the smaller cities Nanjing, Wuxi and Hangzhou, Mr. Hsu said. The area is one of China's primary manufacturing hubs, along with the Pearl River Delta region, where Guangzhou is located.

"We have to avoid congestion," Mr. Hsu said when asked why DHL is considering locating the hub in cities in the Yangtze River Delta beyond Shanghai.

Also in the interview, Mr. Hsu said he expects revenue growth for DHL Express's business in China this year to be "similar" to the growth of between 50% and 60% recorded in 2004.

Separately, DHL said it is launching direct overnight express service between Shanghai and Tokyo. The company also said it is expanding a facility at Shanghai's Pudong International Airport.
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Old November 28th, 2005, 06:42 PM   #589
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China's East Star Air In CNY12B Jet Deal With Airbus, GE
28 November 2005

SHANGHAI (Dow Jones)--China's East Star Airlines Co. said Monday it has agreed to buy 10 A320 planes from Airbus (ABI.YY) and lease another 10 Airbus jets from General Electric Co.'s (GE) financial services unit, in a deal estimated at about CNY12 billion ($1.48 billion).

Delivery of the leased planes, comprising three A319s and seven A320s, will start from the second quarter of 2006, the private airline said in a statement published on its Web site.

East Star Air was established in June, and plans to start business in May 2006. It is wholly controlled by conglomerate East Star Group.

'The operational cost of the A320 is very low and the cabin of the jet is spacious,' China East Star Group Chairman Lan Shili was quoted in the statement as saying.

Lan owns 95% of China East Star Group, said Pan Yanli, head of the group's corporate communications department. She added that all of the planes will be delivered within five years.

'By choosing the best-selling jet in the world, we could effectively enhance our profitability in the initial operational period,' Lan said in the statement, but gave no details.
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Old November 28th, 2005, 11:21 PM   #590
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Air travel checks back in Shanghai

Shanghai has begun screening international travelers for fevers or other symptoms of bird flu, as World Health Organization experts launched an investigation into two deaths from the disease among farmers in eastern China.

Tuesday, November 29, 2005
Associated Press

Shanghai has begun screening international travelers for fevers or other symptoms of bird flu, as World Health Organization experts launched an investigation into two deaths from the disease among farmers in eastern China.
All passengers leaving or entering the country via Shanghai's Pudong International Airport will be screened for high temperatures using an infrared camera and have to fill out a health declaration form, according to a government Web site.

The form requires passengers to say if they have had close contact with poultry, birds, bird flu patients or suspected cases over the past week and to declare whether they have symptoms such as fever, coughing or shortness of breath, the notice said.

Passengers with temperatures exceeding 38 degrees Celsius will be further examined, it said.

Travelers who had visited bird flu affected areas or had contact with live birds or poultry will have to undergo treatment at a designated hospital, Xinhua News Agency said.

The precautions are similar to those imposed countrywide during the 2003 SARS outbreak. Then, airports and many other public places set up infrared cameras at their entries and exits to detect fevers.

China has reported three confirmed human cases of bird flu. Two of the three have died and one has recovered.

A team of four WHO experts started their investigation in the eastern province of Anhui, where two female farmers died of the disease, said Roy Wadia, a WHO spokesman in Beijing.

The experts will visit Zongyang and Xiuning counties to see whether officials followed the correct procedures for surveillance and diagnosis of the bird flu cases, Wadia said.

A 24-year-old woman from Zongyang developed a fever and pneumonia- like symptoms on November 1 after being in contact with sick chickens and ducks. She died nine days later, the first confirmed human fatality in China.

The second woman, a 35-year old from Xiuning, died on November 22 of the same symptoms after handling infected poultry. She was also confirmed as having contracted the potentially fatal H5N1 bird flu virus.
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Old November 29th, 2005, 04:42 PM   #591
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Chinese airlines negotiating for 70-plus Airbuses

SHANGHAI, Nov 29 (Reuters) - Chinese airlines are jointly negotiating to buy more than 70 narrow-body A320 planes from European aircraft maker Airbus SAS, said sources close to the deal, which should be worth around $5 billion.

The order, expected to be signed during Premier Wen Jiabao's trip to France this week, would trump rival Boeing Co.'s 70-jet deal agreed on before U.S. President George W. Bush's visit to China in November, sources at three domestic carriers said on Tuesday.

China's three biggest airlines -- China Southern Airlines Co. Ltd., Air China Ltd. and China Eastern Airlines Corp. Ltd. -- were among the potential buyers, the sources said.

The final tally of aircraft was still being finalised but the order would be new, they added.

Asia has emerged as a battleground in Boeing's effort to regain market share from Airbus, which is controlled by European Aeronautic Defence & Space Co. N.V., based in Germany and France. British defence contractor BAE Systems Plc. owns 20 percent.

"The order will exceed 70 planes from the A320 family of aircraft," an executive with one of the Chinese airlines said on condition of anonymity.

The sources declined to say how much the deal was worth but catalogue prices suggest a figure of around $5 billion. Discounts are routine, however.

Airlines not involved included Shanghai Airlines Co. Ltd., the sources said.

A320 family planes are standard workhorses for short- to medium-range trips, typically seating around 150.

China agreed to buy 70 similar 737 planes from Boeing in a deal worth up to about $5 billion before Bush visited the country earlier this month.

That order -- to be shared among several carriers -- marked the latest in a series of coups in Asia for Boeing, which in January signed an agreement with China worth about $7.2 billion to sell up to 60 of its newest wide-body plane, the 787.

Boeing has said it expected China's domestic passenger market to grow at an average annual rate of 8.8 percent over the next 20 years.

China often waits for its leaders to travel abroad or for foreign leaders to visit Beijing to announce such big business deals.

Earlier this month, Germany's Siemens A.G. and Spain's Telefonica both announced major new deals in China during a trip by President Hu Jintao to Europe. (Additional reporting by Kevin Yao and Victoria Bi in Beijing)
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Old December 5th, 2005, 12:15 AM   #592
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Quote:
Originally Posted by General Huo
Shenyang airport layout


old terminal


new terminal
















TOO BAD, ALL WE CAN SEE ARE QUESTION MARKS ! ? can you send them per jpeg┤s please ??
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Old December 5th, 2005, 11:13 AM   #593
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does anybody have new pictures of the terminal 2 construcition in pudong?

From what I┤ve seen on a-net, their already pretty far on their project....
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Old December 5th, 2005, 06:11 PM   #594
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China orders 150 Airbus jets
5 December 2005

PARIS (AP) - China ordered 150 Airbus single-aisle A320 airliners Monday, more than twice as many plane orders than the company's U.S.-based rival Boeing Co. snagged from China last month.

The European aircraft manufacturer said the deal was worth nearly $10 billion and was "the largest single order that Airbus has ever received since it entered the Chinese market two decades ago."

The A319s, A320s and A321s, all part of the A320 family, will go to Air China, China Eastern Airlines, China Southern Airlines, Sichuan Airlines, Shenzhen Airlines and Hainan Airlines.

The order upstages China's purchase last month of 70 Boeing jets during a visit to Beijing by President Bush. At list prices that deal was worth about $4 billion, although buyers typically get discounts on big orders.

Until now, Chicago-based Boeing has won about 60 percent of new plane orders from China, with Airbus taking about one-third.

The order for Airbus planes was announced on the second day of a visit to France by Chinese Prime Minister Wen Jiabao. Representatives from Airbus and China's Central Aircraft Sales Corp. signed the deal in the presence of the Chinese premier and his French counterpart Dominique de Villepin.

Backed by a high-level French diplomatic offensive, the European plane maker has been pushing to increase its presence in China, one of the world's fastest-growing markets for air travel.

Airbus is controlled by European Aeronautic Defence and Space Co.

Prime Minister Wen's first stop in France on Sunday was the factory where Airbus assembles its 555-seater A380 superjumbos.

Soon after touching down in the southern French city of Toulouse, Wen also presided over the signing of a cooperation agreement between Airbus and China's National Development and Reform Commission that could lead to the opening of an Airbus assembly line to build A320 jets in China.
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Old December 6th, 2005, 02:11 AM   #595
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Sky really is the limit for airline industry
Air corridor congestion remains a massive hurdle to efficiency despite huge recent infrastructure spending transport
5 December 2005
South China Morning Post

AIRLINES AND THEIR passengers are becoming increasingly frustrated at flight delays at main airports as authorities struggle to meet surging travel demand despite extensive industry restructuring and having spent billions of yuan on infrastructure in the past few years.

Experts say the only way to meet the challenge will be sweeping changes to laws that restrict commercial flights over most of the country, forcing airlines to queue in narrow aerial corridors to reach the main airports.

"The main challenge facing China on the [air traffic control] front is the insufficient airspace allocated for civil aviation," said Albert Tjoeng, corporate communications manager (Asia Pacific) for the International Air Transport Association (Iata).

"Only 30 per cent of Chinese airspace is available for civil aviation. This has resulted in air traffic delays at cities in the golden triangle bounded by Beijing, Shanghai and Guangzhou, a shortage of international routes over China as well as a restrictive flight planning policy when airlines plan their flight paths."

Huge progress has been made in reforming the aviation industry on the ground in the past few years, including combining the assortment of small airlines under three main airline groups.

In 2003, the financial burden and management responsibility for 140 airports was transferred to local governments; and subsidies are about to be cut off.

However, industry experts say the shortage of air traffic corridors in busy areas is likely to dilute the benefit of those reforms.

"[The congestion] is increasing in severity. The problem is that there is often no notice of the non-availability of airspace," said a senior executive for an Asian carrier.

"If there's a problem, such as military exercises, they don't allow us to re-route.

"If they closed the east coast route and said 'everyone needs to use a different route' it wouldn't be optimal, but we could cope," he said.

"But they don't. They just make us wait. In bad weather, the entire system often breaks down."

For international services the delays to can be little more than an infrequent but costly irritation.

However, for regional carriers that rely on China for much of their revenues the congestion plays havoc with schedules, adds costs and taints reputations for reliability.

The administrative body that governs China's commercial air space, the General Administration of Civil Aviation of China (CAAC), is said to be keenly aware of the system's shortcomings and eager for reform, but faces resistance from within the security apparatus.

Iata has put proposals to the CAAC that it says would increase by three the number of international air routes over mainland air space and meet the security and economic criteria of all parties.

The CAAC is also said to be considering adopting international standards of vertical separation for aircraft flying above 28,000 feet, a move that would lead to more efficient use of existing air space.

In the Pearl River Delta, the lack of a centralised air traffic control system for the four busy international airports within a 40km circle forces airlines to spiral down to the city of their choice, wasting tonnes of fuel every year and emitting unnecessary pollutants.

"This inefficiency is costing the airlines over US$400 million per year, or about US$1 million every day," Mr Tjoeng said.

For many, with foreign carriers launching new services to China almost daily and mainland airlines expected to take delivery of more than 600 new aircraft by 2010, any changes can't come soon enough.

Airports Council International forecasts a slower expansion of aircraft movements for the next few years throughout the Asia Pacific region as carriers begin to use larger aircraft.

But even if, as forecast, the growth of global aircraft movements dips, airports will almost double the number of take-offs and landings they handle by 2020.

The Asia Pacific region will easily surpass the global growth trend, while China - where the major airports averaged a 13 per cent expansion in aircraft movements in the year to July - is expected to lead the region.

Officials realise that failure to at least ease congestion may stifle growth for wide sectors of the economy that rely on air services for their impetus.

But top airline executives are aware that history dictates any progress will be slow and intermittent.

"We saw air traffic control delays return to high levels again in October following improvements in September," Dragonair chief executive Stanley Hui Hon-chung said in this month's edition of the carrier's in-house magazine, Dragonews.

"We continue to look for ways to resolve this but, as I have said in the past, there will be no quick fix."
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Old December 7th, 2005, 02:13 AM   #596
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Branson throws down gauntlet on visa costs
Virgin to cover visa costs for mainland

7 December 2005
South China Morning Post

Virgin Atlantic Airways will pay visa costs for its mainland passengers next year to press the British government into changing its travel policies for Chinese tourists and business executives, Sir Richard Branson said yesterday.

Sir Richard, whose airline will launch flights from London to Beijing within a year to complement its daily Shanghai service, said Britain's "ridiculous" visa policy was stifling travel between China and Britain.

"It is madness that we don't behave as the rest of the EU does on [China travel visas]. The price of the visa from China to England is more than 25 per cent of the fare at present," he told the South China Morning Post yesterday.

"So for the first few months of next year, we'll pay for the Chinese visas ourselves and try to embarrass the British government into doing something about that."

Mainland citizens pay 1,020 yuan for a visa to visit Britain, while Virgin's lowest fare on the London-Shanghai route is 3,777 yuan.

Florian Preuss, the airline's general manager for Hong Kong, said British airlines were at a disadvantage in the China market compared with carriers from France and Germany, where mainland visa policies are more relaxed.

"Virgin would be able to expand infinitely faster in China if it was easier for the Chinese to travel into and through the UK," Mr Preuss said. "As long as the UK keeps those [restrictions] on, it will limit the amount of traffic that goes through the UK. If you look at Lufthansa and Air France, a lot of what they carry is [transit] traffic."

Virgin yesterday said it would double its London-Hong Kong flights to twice daily next year, a move expected to further cut ticket prices on the competitive route.

Sir Richard said Virgin's entry a year ago on to the Hong Kong-Sydney leg of the "kangaroo route" had led to a 40 per cent drop in ticket prices on the sector and had lifted passenger traffic 20 per cent. "We just can't get enough seats on the Hong Kong route, particularly now that we've started the Sydney leg," he said. "It was quite a brave decision by the Hong Kong authorities to let us on to that route but it's paid off for both of us. From Virgin's perspective, we are finally profitable on the Sydney route and we have only been going 12 months."

He said Virgin could be flying to "four or five cities" in China within five years.

Beijing, he said, would almost certainly be served with a new 370-seat A340-600. "China is just like India, it is exploding," he said.
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Old December 7th, 2005, 04:17 PM   #597
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China Eastern, Yangtze River airlines apply for cargo routes to Luxemburg
7 December 2005

BEIJING (AFX) - China Eastern Airlines Corp Ltd (SHA 600115; HK 0670; NYSE CEA) and Yangtze River Express Airlines Co Ltd have both applied to the General Administration of Civil Aviation of China (CAAC) to launch cargo service to Luxemburg, the CAAC said.

The Administration said that China Eastern, the country's third-biggest carrier, plans to use B747Fs to operate four flights per week flying out of Shenzhen.

Yangtze River Express Airlines, an all-cargo carrier wholly owned by China's Hainan Air Group, plans to operate a service out of Shanghai with three flights a week deploying B747F jets.

No further details were provided.
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Old December 9th, 2005, 06:56 AM   #598
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China Eastern says to lift stake in Wuhan airline

HONG KONG, Dec 9 (Reuters) - Shanghai-based China Eastern Airlines Corp. Ltd. , one of China's top three carriers, said on Friday that it would pay 418 million yuan ($52 million) to lift its minority stake in a central-China affiliate to near total ownership.

The carrier said it had agreed to buy 38 percent of China Eastern Airlines Wuhan Ltd. from Wuhan Municipality State-owned Assets Supervision and Administration Commission for 278 million yuan.

Shanghai Junyao Aviation Investment Co. Ltd. had also agreed to sell an 18 percent stake in the Wuhan airline to China Eastern for 140 million yuan, it said in a statement.

As a result its shareholding would rise by 56 percentage points to 96 percent.

The Wuhan company would become a subsidiary of China Eastern, which would be better able to use the resources available in the subsidiary, it said.

China Eastern expanded its fleet by 58 percent earlier this year after taking over rivals Yunnan Airlines and China Northwest Airlines amid China's ongoing consolidation of its aviation sector.

Shares of China Eastern ended at HK$1.24 on Thursday in Hong Kong, up about 11 percent in the past month. (US$1=8.08 yuan)
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Old December 10th, 2005, 12:25 AM   #599
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Eastern doubles Wuhan stake for 418m yuan
Gladys Tang
10 December 2005
Hong Kong Standard

China Eastern Airlines, one of the mainland's top three carriers, will more than double its stake in a Wuhan-based domestic airline for 418 million yuan (HK$401.36 million) to strengthen its aviation network in the Hubei provincial capital.

The Hong Kong-listed airline said it will take a 56 percent stake in China Eastern Airlines Wuhan, which will be funded by bank loans.

The stake is more than the 40 percent China Eastern had said it intended to acquire.

China Eastern hopes the purchase of the carrier will help sharpen its competitiveness, as it just rebounded to a profit in the third quarter after a first- half loss.

China Eastern's third-quarter profit was 673 million yuan, thanks to the appreciation of the yuan and continued strong demand, after a 471 million yuan loss in the first half on high jet fuel prices.

The stakes will be sold by Wuhan Municipality State-owned Assets Supervision and Administration Commission and the Shanghai Junyao Aviation Investment as part of a state-instructed industry restructure in which China Yunnan Airlines and China Northwest Airlines were merged into China Eastern. ``The agreements will both take effect in the beginning of 2006,'' China Eastern said.

After the purchase, Shanghai-based China Eastern Airlines' holding in the Wuhan airline, in which it bought a 40 percent stake for 240 million yuan three years ago, will increase to 96 percent.

The remaining 4 percent will be equally owned by Wuhan SASAC and an independent shareholder.

China Eastern Airlines Wuhan, formerly called Wuhan Airlines, was formed when China Eastern and the Junyao Group's aviation unit bought stakes in 2002.

Wuhan Airlines' net profit fell 97.7 percent from 28 million yuan in 2003 to 620,000 yuan last year, based on the mainland accounting standards.

China Eastern shares closed down 1.61 percent Friday to HK$1.22.

Meanwhile, China Southern Airlines said its passenger volume last month rose a year-on-year 50.7 percent to 3.6 million and it carried 60 percent more cargo to hit 68,930 tonnes.
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Old December 12th, 2005, 06:07 AM   #600
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China Commerce Minister: 500 More Planes Needed By 2010
11 December 2005

SHANGHAI (Dow Jones)--China will need another 500 passenger jets by 2010, and a further 2,000 by 2020, the official Xinhua News Agency reported Monday, citing Minister of Commerce Bo Xilai.

Speaking at an American Chamber of Commerce banquet Friday, Bo said trade relations between China and the U.S. are "balanced," as China has invested a huge amount of the foreign exchange earned through exports to the U.S. in U.S. bonds, while China's imports from the U.S. have been increasing.

"China's aviation market is still in its adolescence, which provides a basis for our cooperation," Bo said.

China leapfrogged the U.K. to become the U.S.'s fourth-largest export market this year, compared with ninth in 2001, Bo said.

China's massive trade surplus with the U.S. is a sore point with Washington, and Beijing frequently announces large purchases of U.S. airliners during visits to China by U.S. officials. During Bush's trip to Beijing in November, China agreed to buy 70 Boeing 737 airliners.

Bo reiterated China will protect intellectual property and called on the U.S. to broaden trade between the two countries.

-Sun Yan contributed to this story
-Edited by Andrew Bullard
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