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Old January 10th, 2016, 06:48 AM   #801
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Old January 11th, 2016, 04:14 PM   #802
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New domestic airlines fly high after takeoff
11 January 2016
China Daily Excerpt

China is seeing some heartening growth stories in civil aviation, as new airlines launched last year aim to fly high despite the overall economic slowdown.

In 2013, the Civil Aviation Administration of China lifted its 2007 suspension of new airline licenses. Since then, four new players have entered the industry, in addition to five new transport airlines.

But Guangxi Beibu Gulf Airlines Co may be the most remarkable. Launched in 2015, it has achieved a rare feat: immediate profit.

"We are very competitive. We earned a profit in our very first year of operations, which is very rare in the civil aviation industry," said Wu Chongyang, the company's president and chairman.

The airline is competing for several awards within HNA Group, its parent and the fourth-largest airline group in China.

Many local governments are eager to cooperate with existing airlines to launch new carriers because they believe aviation could drive local economic growth.

Guangxi Beibu is one such private-public joint venture. State-owned Guangxi Beibu Gulf Investment Co put up 900 million yuan ($136.5 million) for a 30 percent stake in the carrier.

The fleet increased to 10 planes in 2015 - surprising performance for a new carrier in its first year, Wu said. It uses E-190 aircraft built by Embraer SA of Brazil. All 114 seats are economy class.

The carrier also plans to receive Airbus 320 aircraft for use on international routes this year, Wu said.

"We expect to fly to all capitals of the Association of Southeast Asian Nations in three years. The first international route in the region will be launched in 2016."

It's natural for Guangxi Beibu to fly to Southeast Asia, since it is based in the Guangxi Zhuang autonomous region, which is China's gateway to to the region. The carrier has targeted business travelers between China and the ASEAN region as bilateral trade is on the rise, necessitating more air traffic, Wu said.

China-ASEAN trade amounted to $480.39 billion in 2014, up 8.3 percent year-on-year, and is expected to reach $1 trillion by 2020.

Guangxi Beibu Gulf Airlines operates 18 routes to more than 20 domestic destinations. Its average load was over 80 percent last year.

In order to avoid competing with major carriers directly, Guangxi Beibu chose routes between provincial capitals and third- and fourth-tier cities, Wu said.

The numbers are showing the strategy works.
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Old February 4th, 2016, 01:38 PM   #803
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Old February 4th, 2016, 08:00 PM   #804
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Old February 24th, 2016, 06:59 PM   #805
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Sky’s the limit for Hainan Airlines
Feb. 24, 2016
China Daily Excerpt

HNA Group’s purchase of Ingram Micro for $6 billion demonstrates the company’s strength and enormous potential growth, said Chen Feng, chairman of HNA Group Co, parent company of Hainan Airlines.

“This purchase shows that our company takes a broad and long-ranging view of expansion, and that we can take advantage of great opportunities,” Chen told China Daily on Monday on the sidelines of a lecture by Chen at Harvard University.

The Ingram acquisition isn’t “the only big purchase”, he said. “We also acquired Swissport Group, one of the biggest service companies to airlines and airports, so the Ingram purchase is just one part” of this expansion.

Chen was in Boston as part of HNA Group’s visit to the Harvard Business School.

Hainan Airlines, based in Haikou, Hainan province, is the largest privately owned air carrier in China and the fourth-largest overall behind the country’s three airlines — Air China, China Southern and China Eastern.

HNA recently made headlines by acquiring several Western companies, including Ingram Micro — the world’s largest wholesale technological products distributor — and the $2.8 billion acquisition of Swissport.

At the end of January, Hainan Airlines launched its newest US-China direct flight, operating between Los Angeles and Changsha, Hunan province. Because only one state carrier can operate flights between each international route, pathways between major US and Chinese markets are already being serviced by China’s state-owned air carriers.

Hainan Airlines’ strategy has been to operate between smaller US markets and major Chinese cities, or set up routes between big US cities and second-tier cities in China.
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Old February 26th, 2016, 01:46 PM   #806
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Old March 2nd, 2016, 06:08 PM   #807
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Airbus starts work on new China facility
2 March 2016
AFP Excerpt

Europe's largest aircraft manufacturer Airbus started construction Wednesday on a new facility to deliver wide-body planes in China, as it faces off against bitter US rival Boeing for market share in the world's second-largest economy.

At a ceremony in the northern port of Tianjin Airbus CEO Fabrice Bregier and Chinese officials officially broke ground for the completion and delivery centre that will produce two A330 planes per month.

The centre is an expansion of the firm's existing final assembly plant for A320 single-aisle aircraft in the city.

It comes with China's economic growth at its weakest in a quarter of a century and concerns over its outlook sending shivers through global stock exchanges.

But Bregier said that "this is not true for our market", adding that increased middle-class incomes and easing visa rules were driving a boom in Chinese air travel.

The world's second-largest economy is already Asia's biggest aircraft buyer as a growing middle class takes to the skies in ever-increasing numbers. The country is forecast to have 1.7 billion air passengers by 2034, and is poised in the next two decades to become the largest civil aviation market in the world.

The new $150 million centre is the company's first such facility for wide-body aircraft outside Europe, and "marks a new milestone for Airbus' international footprint", Bregier said.

It will take flyable unpainted aircraft from their headquarters in Toulouse, France and add cabins, furnishings and paint, before they are delivered to customers.
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Old March 3rd, 2016, 03:01 PM   #808
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Qunar to launch its own low-cost carrier
3 March 2016
China Daily Excerpt

Qunar Cayman Islands Ltd, China's second-largest online travel agency, is setting up a Shenzhen-based low-cost airline in partnership with two other companies from the city, in an apparent response to recent bans on its sale of flights for some major airlines.

Air China Ltd, China's flagship carrier, announced that it would suspend sales of air tickets by authorized agents using Qunar starting March 1.

At the end of December, Qunar also saw its cooperation ended with China Southern Airlines, Hainan Airlines and Capital Airlines, after a growing number of customer complaints on issues including prices, bundling tickets with insurance without pre-notice, and cancellations.

Air ticketing has been one of Qunar's fastest-developing income streams with revenues from flight and flight-related sales hitting 596.6 million yuan ($93.9 million) during the third quarter of 2015, a 91.2 percent rise.

"Major airlines closing their flagship stores on Qunar put some pressures on the website and then the suspension of air tickets was a real threat," said Wei Changren, general manager of Ctcnn.com Inc, a consultancy that focusing on the online tourism sector.
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Old March 9th, 2016, 03:50 PM   #809
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Old March 18th, 2016, 02:22 PM   #810
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Chinese budget airline delays route to Pyongyang
18 March 2016
The Korea Herald Excerpt

Chinese budget airline Spring Airlines has delayed plans to run a route to the North Korean capital of Pyongyang, citing “market conditions,” a company official said Thursday.

The Chinese carrier was originally slated to begin scheduled flights to Pyongyang from February, but it decided to postpone the plans following North Korea’s fourth nuclear test on Jan. 6 and a rocket launch about a month later.

An official of Spring Airlines in Shanghai denied the decision was related to the latest U.N. sanctions against North Korea for the bomb test and rocket launch.

Spring Airlines won regulatory approval to launch flights to Pyongyang on Jan. 12, according to China‘s civil aviation authorities.
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Old March 18th, 2016, 07:45 PM   #811
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Quote:
Originally Posted by CarlosBlueDragon View Post
Sample design!!
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What a disgusting font... in Chinese you have that nice calligraphy by somebody important... then in English you have comic san's inbred cousin.
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Old March 18th, 2016, 11:00 PM   #812
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What a disgusting font... in Chinese you have that nice calligraphy by somebody important... then in English you have comic san's inbred cousin.
Maybe I am being conservative but I liked the old one better. It had a character. Colors are ok but the font is not.
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Old March 19th, 2016, 03:17 PM   #813
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Old March 23rd, 2016, 02:49 PM   #814
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Chinese Airlines Skirting Fuel Hedge Profit From Plunge in Oil
Bloomberg Excerpt
March 23, 2016

China’s airlines are reaping the benefits of a policy not to hedge in the oil market, unlike some of their rivals across Asia Pacific.

The ’Big Three’ -- Air China Ltd., China Southern Airlines Co. and China Eastern Airlines Corp., will probably report next week at least a 70 percent surge in net income for 2015 amid a plunge in oil prices, which helps to trim their biggest expenditure. Hainan Airlines Co., the biggest non-government carrier, is due to report Thursday.

The Chinese carriers’ strategy is in contrast to Cathay Pacific Airways Ltd. and Singapore Airlines Ltd., which both reported hundreds of millions of dollars from hedging losses last year. Crude oil’s plunge to a 12-year low in January has fueled a rally among airline shares amid a surge in traffic in a country set to become the world’s biggest travel market.

"2015 was a good year, but 2016 will be even better," said Esme Pau, a transportation analyst with Jefferies Hong Kong Ltd., who rates Air China and China Eastern shares a buy.

Brent prices that hovered over $67 a barrel in May slumped to a low of about $27 in January, helping cut what is often the biggest cost for most Asian airlines.

Still, it isn’t all that easy a ride.

China devalued the yuan last year, which affects the carriers as they have ordered some $100 billion worth of aircraft. While payments for planes are in dollars and a large portion of revenue comes from the local market, Chinese airlines are taking steps to cut dollar-denominated debt.

The three big carriers have targeted to reduce the portion of dollar debt to 50 percent to 60 percent of their total by the end of this year, HSBC Holdings Plc analysts led by Jack Xu wrote in a report last month.

"This should help reduce forex sensitivity when the renminbi depreciates against the dollar," Xu wrote.

Decades of economic growth have spurred a surge in air travel demand in China, which is forecast by both Boeing Co. and Airbus Group SE to become the world’s biggest air travel market. By 2034, one in five passengers in the world will be traveling to, from, or within China, according to the International Air Transport Association.

Good Year

Passenger traffic rose 11 percent last year to 440 million trips, according to the country’s aviation administration. It has projected 485 million passenger trips this year.
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Old March 25th, 2016, 02:53 PM   #815
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Old March 29th, 2016, 02:47 PM   #816
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HNA a launchpad for national, social support
29 March 2016
China Daily Excerpt



Hainan Airlines launched the first direct flight between China and the Czech Republic in September last year, linking the capitals Beijing and Prague.

The initiative was part of the company's efforts to support China's ongoing Belt and Road Initiative, an ambitious plan proposed by President Xi Jinping in 2013 to revitalize the ancient Silk Road land and sea trade routes linking the East and West.

The flagship subsidiary of HNA Group, Hainan Airlines has been safely operating for 23 years, realizing more than 5 million hours of safe flights.

The fourth-largest carrier in China was ranked one of the world's safest airlines three times by Germany's Jet Airliner Crash Data Evaluation Centre and was awarded the title of a five-star airline for five consecutive years by Skytrax, a London-based aviation website and source of airline ratings and reviews.

Its parent company HNA Group began as an aviation transportation operator in 1993 in Hainan province. It is now a conglomerate that covers six business sectors including aviation, real estate, tourism, finance, logistics and eco-tech, with total assets of more than 600 billion yuan ($92.3 billion) and nearly 180,000 employees worldwide.

The group manages 11 listed companies and generated revenues of nearly 190 billion yuan in 2015.

After more than 20 years of painstaking efforts, HNA now ranks 99th among China's Top 500 Enterprises and last year made its Fortune 500 debut, ranking 464th with annual revenue of over $25.6 billion.

To promote the implementation of the Belt and Road Initiative, HNA Group has been actively carrying out overseas investments and acquisitions since 2010 to expand.

It established more than 30 subsidiaries by the end of 2015 in 14 countries and regions in such sectors as aviation, logistics, finance, real estate, hotel and tourism. They have combined assets of nearly 140 billion yuan, with nearly 23,000 employees.

The group purchased two container leasing companies, GE Seaco in 2011 and Cronos in 2015, to develop its oceanic logistics. It also established Urumqi Air in 2013, Fuzhou Airlines in 2014 and Guangxi Beibu Gulf Airlines in 2015 by cooperating with local governments and companies to help create an aerial Silk Road route.
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Old April 6th, 2016, 03:12 PM   #817
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Overcapacity hits top airlines
5 April 2016
China Daily Excerpt

China's three main airline groups saw declining yields on international routes last year, despite rosy annual performance reports amid record-low oil prices.

The aggressive expansion of capacity on overseas markets and rising competition on routes to regions such as Japan, South Korea and Southeast Asia have resulted in sharp decline in their yields.

The airlines kept setting up new international routes in 2015 and they had been laying out their latest aircraft on those routes. All three carriers have witnessed a jump on their available seat miles (ASM) on international routes, which measures a flight's passenger-carrying capacity.

Last year, China Southern Airlines saw its ASM climb by 30 percent over the previous year. China Eastern Airlines and Air China each had its ASM grow by nearly 25 percent and 20 percent year-on-year, according to their latest earnings reports.

But they saw declining yields, or passenger revenue per available seat mile, on the international routes. Air China, China Eastern and China Southern, each had its yields declined by 19 percent, 4.7 percent and 10.3 percent year-on-year, respectively.

Li Xiaojin, a professor at Civil Aviation University, said: "Currently, the supply of domestic air routes exceeded the demand, due to the growth of high-speed trains. Airlines can only expand their international air routes, as a result of the growing demand for overseas traveling and the frequent flow of domestic and foreign personnel."

Xiong Xing, director of airline ticket business at Ctrip.com International Inc, the largest online travel agency in China, said: "Compared with some well-known foreign airlines, domestic airlines have a weak branding impact on the international market. The competition on international air routes is intense.

"Most State-owned and private domestic airlines added passenger capacities on international air routes. They also introduced low air ticket prices, especially for those long routes from China to the United States and Europe, to attract more customers," Xiong said.

The three airlines reported their best performance in three years thanks to record-low oil prices. China Southern's profit more than doubled to reach 3.85 billion yuan ($595 million) last year, while China Eastern's profit grew 33 percent to 4.54 billion yuan and Air China's profit surged 77 percent to 6.77 billion yuan.

The growth in carrying capacity has prompted a revenue increase for the major airlines. Last year, the three airlines saw their revenues from international air routes added by more than 10 percent year-on-year.
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Old April 9th, 2016, 07:12 AM   #818
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Old April 13th, 2016, 02:50 PM   #819
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Mainland carriers a force to be reckoned with
11 April 2016
China Daily Excerpt

Shanghai-based China Eastern Airlines - the first mainland carrier to be listed in Hong Kong's H-share market - has announced a major plan to expand on the lucrative trans-Pacific routes as the number of mainland travelers heading for US destinations climbs.

The move offers investors an extra incentive to buy airline shares at a time of low fuel costs which are not expected to go up any time soon. China Eastern predicts it could fly 3 million to 4 million more passengers after the scheduled opening of Shanghai Disneyland in mid-June.

Squeezed by tight margins in the highly competitive domestic market, all major mainland carriers have become increasingly dependent on long-haul international flights to raise profit. There have been persistent rumors that Air China - the widely recognized mainland flag carrier - is pursuing a merger with China Southern Airlines to amalgamate and streamline their international routes with a view to achieving greater efficiency.

In the past, mainland carriers have had to compete with their foreign counterparts on pricing. This had the undesirable effect of keeping profit margins low. As a result, some mainland carriers have lost money on international routes.

However, a few mainland airlines, particularly China Eastern, have greatly improved their standards of inflight service in recent years. This, backed by newer aircraft, including Boeing 787s and Airbus 330s, has helped them compete with foreign airlines on an equal footing in inbound traffic.

China Eastern is not doing it alone. It aims to team up with Delta - one of the largest US carriers - marking a step forward in launching joint operations this year. In addition, the Chinese carrier has forged what it calls "strategic" partnerships with Air France, KLM of the Netherlands and Australia's Qantas to help facilitate its expansion in the European and Australian markets.

China Eastern posted a profit of 4.54 billion yuan ($701 million) for 2015 - up 4.5 percent from the previous year.
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Old April 15th, 2016, 02:21 PM   #820
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China's Spring Airlines to double fleet size to 100 aircraft by 2018
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BEIJING, April 15 (Reuters) - Spring Airlines, China's largest budget carrier, seeks to double its fleet size to 100 aircraft by 2018, its chairman said on Friday.

The company has no plan to introduce long haul routes and buy wide-body aircraft, Wang Zhenghua told a group of reporters in Shanghai.

Surging air travel demand from Chinese tourists has prompted budget airlines to buy more jets.

In December, Spring Airlines signed a $6.3-billion deal to buy 60 A320neo jets from Airbus Group SE.
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