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Old August 21st, 2007, 07:29 PM   #261
hkskyline
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Originally Posted by FM 2258 View Post
I was playing Flight Simulator 2004 recently and noticed that China doesn't seem to have many airports for it's size and population. I noticed there are only 4 airports in the Pearl River Delta (HKG, SZX, CAN and ZUH) but the area around New York City has about 10+ airports (JFK, LGA, ISP, EWR, Linden Airport, Teterburo Airport, Essex County Airport, Suffolk County Airport - West Hampton....and a few more). Does China need to build more airports?
There has been a lot of talk about overbuilding airports in the Pearl River Delta. Macau, Shenzhen, and Guangzhou do have legitimate need for their own airports along with Hong Kong as the main international hub. Zhuhai's airport is far more questionable, and is now under Hong Kong management.
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Old September 2nd, 2007, 06:23 AM   #262
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Shanghai Airlines to order 5 Airbus A321 jets

SHANGHAI, Aug 31 (Reuters) - Chinese regional carrier Shanghai Airlines Co. Ltd. said on Friday its board had approved the order of five A321 jets from Airbus with a total list price of $370 million.

The jets will be delivered between 2011 and 2012, the carrier said in a statement. It did not specify the actual price of the deal.

The purchase, aimed at expanding the firm's fleet and reducing costs, will be financed with the company's own funds and bank loans, Shanghai Airlines said.
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Old September 3rd, 2007, 06:52 AM   #263
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China Eastern's Skies Brighten As Singapore Air Gets on Board

China Eastern's Skies Brighten As Singapore Air Gets on Board
By BRUCE STANLEY of Wall Street Journal
September 3, 2007


HONG KONG -- Singapore Airlines has finally made a long-awaited strategic investment in China Eastern Airlines, linking the weakest of China's big carriers with a global aviation superstar. The deal signed yesterday in Shanghai promises to shake up China's airline industry and should create new opportunities for investors eager to profit from its red-hot growth.

In a combined investment worth 7.2 billion Hong Kong dollars Singapore Airlines has agreed to buy a 15.7% stake in China Eastern, while its parent -- Singapore's state-owned investment company Temasek Holdings -- takes an additional 8.3% of the Shanghai-based airline. The agreement was signaled well in advance, as China Eastern and Singapore Airlines both suspended trading in their shares May 22 when Singapore Airlines confirmed it was in advanced talks to buy into the Chinese carrier.

Trading in China Eastern's Hong Kong-listed shares has remained frozen since then as the parties have haggled over details of the deal. A China Eastern official said the company's shares would resume trading today. They last traded at HK$3.73 (48 U.S. cents) apiece.

"My gut feel is it will probably go up," says Adrian Lowe, an equity analyst at CLSA Asia-Pacific Markets. Singapore Airlines agreed to pay HK$3.80 a share in China Eastern.

Regardless of how China Eastern's stock performs in the immediate aftermath of yesterday's announcement, the outlook for the company over the longer term "can only be upside," Mr. Lowe says. China Eastern has been unprofitable for two years running and is snowed under with debt. The analyst says its net-gearing ratio -- net debt, excluding off-balance-sheet financing, divided by equity -- is 1,000%. Comparable net-gearing ratios at financially conservative British Airways and Cathay Pacific Airways are about 30%, he says.

While Shanghai, China's commercial capital, is an attractive aviation hub, China Eastern faces a "blowtorch" of competition there from smaller rival Shanghai Airlines, notes Peter Harbison of the Centre for Asia Pacific Aviation, a Sydney consultancy. And unlike its main competitors Air China and China Southern Airlines, China Eastern has yet to join an international alliance, a step that could help it boost revenue through reciprocal ticket sales and cut costs by sharing passenger lounges and other facilities.

The prospect of financial support and operational expertise from Singapore Airlines suggests that China Eastern's worst days might be over. Last week, China Eastern posted first-half net profit of 58.2 million yuan (US$7.71 million), compared with a net loss of 1.34 billion yuan a year earlier. Citigroup analyst Ally Ma predicts the company will earn a profit for the full year, a view echoed by China Eastern President Cao Jianxiong in a comment to reporters yesterday in Shanghai. Ms. Ma is heartened by Singapore Airlines' strategic investment. She rates China Eastern a "buy" and expects to update her share-price target of HK$3.35.

Not everyone is impressed. Jackie Choi, an analyst at Hong Kong brokerage Celestial Securities, argues that China Eastern's shares are overvalued and has a "sell" rating on the stock. He predicts the shares will slide to HK$3 or less within a month.

Even so, Mr. Choi agrees China Eastern stands to gain a lot from its new partnership. Singapore Airlines is only the second international carrier to invest in a big Chinese airline; it was motivated partly by desire to counter Cathay Pacific's 17.5% cross-shareholding in flag carrier Air China.

Singapore Airlines has long coveted a foothold in China, where aviation has surged thanks to a sizzling economy, an easing of travel restrictions and an expanding middle class. Boeing forecasts that China's market for air travel will expand by a remarkable annual average of 8.1% over the next 20 years. Now, at a stroke, Singapore Airlines has reordered the competitive landscape for China's airlines.

Air China, which last week announced a tripling in its six-month net profit, has been consistently more profitable than both China Eastern and China Southern. Its tie-up with Cathay Pacific has helped it improve in-flight service and other key operations and let it start integrating its domestic flight network with Cathay's far-flung international routes.

"I think fundamentally Air China is the best" of the three biggest Chinese carriers, says Mr. Choi of Celestial Securities. He has a "hold" rating on the company's stock, calling it fairly valued. Air China's Hong Kong-listed shares closed Friday at HK$9.70.

CLSA's Mr. Lowe rates Air China a "buy," with a 12-month share-price target of HK$11.30. Ms. Ma of Citigroup has a "buy" rating on Air China stock as well, and a 12-month target price of HK$10.20.

Last Wednesday, as word leaked that a China Eastern-Singapore Airlines deal was imminent, Air China President Cai Jianjiang said his company would consider merging with other Chinese carriers, including China Southern -- which then said it had no plan to merge or consolidate. Air China backpedaled the next day, in a clarification stressing it didn't exclude the possibility of a restructuring of China's airline sector.

The exchange highlighted growing speculation that China's government might want to reorganize the country's airlines to help them withstand intensifying competition from overseas. Beijing last restructured the industry in 2002 with a series of countrywide mergers.

"China has to do something to encourage consolidation to create one or two megacarriers that would be able to compete with foreign carriers," says Ms. Ma of Citigroup.

China Southern is now the only one of China's three largest carriers without a strategic investor. Although it has the biggest fleet in China, with more than 300 planes, and rebounded to a net profit in the first half after being unprofitable a year earlier, the carrier faces mounting competitive pressure as a result of China Eastern's partnership with Singapore Airlines.

"I think this will have some impact on China Southern's operations," a China Southern official acknowledged. He is particularly concerned about the Guangzhou-based company's ability to attract passengers flying to and from China now that they will have the option of combined Singapore Airlines-China Eastern flights via Singapore. The official added: "I think it will be hard for China Southern to introduce an international airline investor."

China's government owns just 50.3% of China Southern, and foreigners can legally own no more than 49% of a Chinese airline. China Southern's existing ownership structure would thus seem to preclude a foreign investor from buying an additional large stake, unless the company issued more shares, the official said.

Yet speculative interest in such a scenario has helped fuel a fivefold increase in China Southern's share price over the past 12 months.

"There is a sort of speculative angle on China Southern, which could be the next target [for a strategic investor] because they need the assistance," says Mr. Lowe of CLSA.

On Aug. 21 -- when China Southern shares closed at HK$6.81 -- Citigroup rated them a "buy" with a 12-month price target of HK$7.95. Since that day, the shares have been on a tear, closing Friday at HK$9.93.
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Old September 4th, 2007, 06:06 AM   #264
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Don't think this partnership will create too much synergies. It doesn't make sense for Chinese travellers to head south to Singapore to transit to either Europe or North America. In fact, I doubt the Chinese government will let international traffic divert like that, instead preferring to grow nonstop routes from China abroad. In that light, I see the prospect of more passengers opting to use China Eastern to fly internationally rather than using SQ. Somewhat opposite of what was expected, right?
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Old September 4th, 2007, 06:18 AM   #265
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Mesa Air, Chinese partner closer to new Chinese airline
28 August 2007

SHANGHAI, China (AP) - Mesa Air Group Inc. and China's Shenzhen Airlines Co. are due to receive a license to begin operating a new domestic regional carrier in northwestern China, China's aviation authority says.

A statement seen Tuesday on the Web site of the General Administration of Civil Aviation of China, or CAAC, said the authority has finished reviewing the license application and is gathering final opinions before issuing it.

The new carrier, Kun Peng Airlines Co., will be China's first joint venture domestic passenger airline. Based in the north-central city of Xi'an, it will be allowed to operate passenger and charter services and air cargo flights, the statement said.

Kun Peng is 51 percent owned by Shenzhen Airlines, with remaining shares held by two of Phoenix, Arizona-based Mesa's units: Ping Shan SRL and Shan Yue SRL, CAAC said.

Earlier, the airlines announced that Kun Peng will fly to 11 Chinese cities with 50-seat regional jets. The airline is due to begin services on Sept. 16.

Chinese government rules limit foreign investors to holding a minority stake in companies in industries deemed strategic, such as air travel.

Mesa operates 198 aircraft with more than 1,300 daily flights to 173 cities in the United States, Canada, Mexico and the Bahamas. It operates under its own name and as America West Express, Delta Connection, US Airways Express and United Express.

Mesa will provide the new Chinese airline with pilot and maintenance support, aircraft sourcing and training, the companies said.

Shenzhen Airlines, headquartered in the southern Chinese business center of Shenzhen, operates 45 A320 and B737 aircraft on 100 routes in China and Southeast Asia.
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Old September 5th, 2007, 01:26 PM   #266
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Shenzhen Airlines: Considering IPO To Fund Fleet Expansion
2 September 2007

HONG KONG (Dow Jones)--Shenzhen Airlines Co., China's largest unlisted carrier in terms of assets, said Monday it is considering an initial public offering to fund its fleet expansion.

Chief Executive Li Kun said at a press conference in Hong Kong the carrier doesn't have a timetable for the planned stock offering.

He didn't say how much the company plans to raise in the offering or where it may list the shares.

Li said he expects revenue this year to exceed CNY10 billion, up from CNY6.45 billion in 2006.

Shenzhen Airlines has a fleet of 55 planes. It expects the size of its fleet to rise to 70 by the end of this year, and to reach 100 by the end of 2008.
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Old September 5th, 2007, 02:35 PM   #267
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Originally Posted by hkskyline View Post
Body found inside jet wheel well in San Francisco

SAN FRANCISCO, July 19 (Reuters) - Maintenance workers at San Francisco International Airport on Thursday found a dead man in the wheel well of a United AirlinesBoeing 747 arriving from China, an airline spokeswoman said.

"This was a very unfortunate incident. We are cooperating with authorities," United spokeswoman Megan McCarthy said.

Flight 858 arrived in San Francisco after an 11-hour trip that began in Shanghai.

Airport workers occasionally find the bodies of stowaways in the chamber used to store wheels during flight. They often die from asphyxiation or exposure to sub-freezing temperatures.

who was the dead person and how on earth did he get into the wheel well?
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Old September 5th, 2007, 03:19 PM   #268
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Originally Posted by asif iqbal View Post
who was the dead person and how on earth did he get into the wheel well?
These incidents happen once in a while. Perhaps he got onto the tarmac past the security, snuck onto the plane through the wheels hoping he can seek a better life in the US, not knowing the conditions in-flight would be fatal.
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Old September 5th, 2007, 03:23 PM   #269
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Originally Posted by hkskyline View Post
These incidents happen once in a while. Perhaps he got onto the tarmac past the security, snuck onto the plane through the wheels hoping he can seek a better life in the US, not knowing the conditions in-flight would be fatal.
OMG so he actully climbed in, I thought it was some sort of accident or something, that is just crazy.
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Old September 8th, 2007, 12:33 PM   #270
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Don't know if this has been posted somewhere else...

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China hopes a homegrown regional jetliner can challenge Airbus and Boeing

By Donald Greenlees and Nicola Clark
Published: September 7, 2007

HONG KONG: At an aerospace industry show here this week, China's leading commercial aircraft maker found its stand flanked by the elaborate displays of the two giants of the business, Boeing and Airbus.

But the China Aviation Industry Corporation 1, a minnow in aircraft manufacturing, drew a steady stream of visitors curious to take a look inside a mock-up of its most ambitious project: a regional jetliner for the domestic and international markets now being developed at a factory in Shanghai.

The ARJ21, the designation given to the aircraft, has yet to go on its maiden test flight. That is due to come in March next year. The mock-up at the Asian Aerospace show in Hong Kong was of only the cockpit and part of the fuselage.

Yet China's hopes of an internationally competitive homegrown aerospace industry are largely riding on the wings of the aircraft's success.

For international aviation, the arrival of the jet is a modest event. For Chinese aviation, it is a debut as keenly anticipated as the launch of the Airbus A380 or the Boeing Dreamliner. It will be the first Chinese-designed, Chinese-made jet to seek U.S. certification with the goal of seizing part of the fast-growing global market for regional jetliners.

"The ARJ21 will be fast, cover long distances and have between 50 and 110 seats, filling what is missing from the current regional market," Chen Jin, vice president of the company's commercial aircraft division, said in a presentation to industry representatives Wednesday.

"It will be convenient as it will allow clients to travel across regions and vast distances. Do we really need all these hubs? Not when we have the ARJ21. I believe this model will also prove popular in North America."

China is seeking to tap into one of the fastest-growing segments of the domestic and foreign aircraft market as it pursues a long-term ambition to be a significant player in commercial aircraft manufacturing.

A recent industry forecast by the Canadian aircraft maker Bombardier Aerospace estimated that over the next 20 years, an additional 11,200 aircraft would need to be built to meet demand in the 20- to 149-seat market segment.

Of that, the Chinese market would account for 15 percent of global deliveries, or 1,660 aircraft. World demand is projected to be greatest for aircraft with capacity in the 100- to 149-seat range, making up 5,900 of the total.

The Civil Aviation Administration of China is anxious to encourage domestic manufacturers of this type of aircraft. Part of China's strategy of making air travel more accessible to the population is to improve direct connections between cities, expand regional and low-cost services and increase the availability of air services in the country's western regions.

Air travel in China is centered very heavily on a few hubs. The 20 largest airports are estimated to fill 80 percent of passenger volumes. A large number of smaller airports serve fewer than 200 people a day. Smaller aircraft on point-to-point routes would take the pressure off overcrowded hubs and improve flight frequency and the efficiency of aircraft use.

The ARJ21 would potentially serve this niche in China well. The first of the aircraft to roll off the assembly line in October 2009 will be a 90-seat version with a standard range of 2,225 kilometers, or 1,380 miles. An extended range version will allow it to fly 3,700 kilometers nonstop.

It will be the first commercial jet aircraft fully designed in China, although the engines are being supplied by General Electric and the avionics are also foreign-sourced. The first plane is due to undergo flight testing by March, paving the way for domestic certification.

"Right now we are perfectly on schedule for completing our program," said David Li, a marketing manager with the company.

China has been making aircraft components for Boeing and Airbus for years, but earlier attempts at producing a homegrown commercial jet - a long-held dream - have been troubled.

In the 1970s there was the Shanghai Y-10, a copy of Boeing's 707, which made it to the test-flight stage but was abandoned in the early 1980s amid a shortage of funds and a lack of interest among Chinese airlines in the plane.

In 1985, the Chinese signed a co-production deal with McDonnell-Douglas of the United States to build several dozen MD-82 and MD-90 jets in China, but the agreement was terminated in 1988, amid a dispute over technology sharing, before any of the Chinese-built planes ever flew.

The first delivery will be to Shandong Airlines, which has placed an initial order for 10 planes. Other firm customers are Shanghai Airlines and Shenzhen Financial Leasing. So far, there are orders and expression of interest for more than 60 aircraft.

The Chinese government has given a significant boost to the prospects for domestic sales through some key interventions. In mid-2001, Beijing lifted an import and sales tax for aircraft of less than 25 tons from 5 percent to about 23 percent. The tax for aircraft over 25 tons is 5 percent.

Recently, the aviation administration said it had decided on a pause on the licensing of new airlines to ease the breakneck speed of the industry's expansion, allowing time for infrastructure to catch up.

But there was an exception for airlines operating locally-built aircraft or flying in the less-developed west and northwest, which would have their applications considered.

Those sorts of decisions are a valuable fillip to local industry. The import-tax decision had a dramatic impact on the China sales of two of the leaders in the smaller regional aircraft market, Bombardier and the Brazilian company Embraer.

"Our business basically stopped after the tax increase," said Guan Dong Yuan, managing director of Embraer in China. "We had to find another strategy to open the market. No doubt they were looking to protect their own industry. It was understandable."

Embraer responded by establishing a joint venture in 2002 with the China Aviation Industry Corporation 1 to assemble a 50-seat jet in Harbin, using imported parts. Guan said as a result the company was able to offer the aircraft at the international price.

Bombardier has also decided on a direct investment in local manufacturing. In June, it too announced it was teaming with China Aviation Industry. It agreed to invest $100 million in the further development of the ARJ21 aircraft with the aim of building a bigger-capacity version and helping the aircraft maker win foreign certification, particularly from the U.S. Federal Aviation Administration. It will receive a royalty for each ARJ21 sold.

Foreign certification is the key to the real prize of export sales. Analysts said that China could not rely exclusively on demand from its domestic sales in order to recoup development costs.

Jim Eckes, consultant at Indoswiss Aviation in Hong Kong, said that means going up against the big manufacturers without an established brand or reputation. "The marketing costs are going to be tremendous," Eckes said. "They'll have to spend at least another $500 million just to promote the plane. They're going to have to be in touch with end-users every day."

International Herald Tribune

Nicola Clark reported from Paris.
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Old September 8th, 2007, 05:21 PM   #271
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Don't think this partnership will create too much synergies. It doesn't make sense for Chinese travellers to head south to Singapore to transit to either Europe or North America. In fact, I doubt the Chinese government will let international traffic divert like that, instead preferring to grow nonstop routes from China abroad. In that light, I see the prospect of more passengers opting to use China Eastern to fly internationally rather than using SQ. Somewhat opposite of what was expected, right?
I don't think Singapore Airlines is trying to use China Eastern as a feeder for her intercontinental routes (except perhaps connections to Australia and Indonesia). Rather I think Singapore Airlines wants to expand in China and for political reasons needs a partnership with a major mainland carrier. It's a chance for SQ to profit from the huge growth potential of aviation in China and Shanghai. Obviously China Eastern, currently with lousy service, can benefit enormously from Singapore Airlines' expertise.
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Old September 13th, 2007, 07:32 PM   #272
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China faces shortfall of 2,000 airline pilots

BEIJING, Sept 6 (Reuters) - China's rapidly expanding civil aviation sector faces a shortfall of 2,000 pilots over the next few years, and a senior regulatory official said they would try to get more women to consider a flying career.

Gao Hongfeng, deputy head of the General Administration of Civil Aviation of China, said the country would need an additional 9,000 or more pilots by 2010, as airlines were adding new aircraft at the rate of up to 150 a year.

"But speaking truthfully, we only have the capacity to train about 7,000, leaving us lacking 2,000 pilots," he told a Web cast carried on the central government's Web site ( www.gov.cn ).

They will try to cope with this by expanding existing facilities and permitting privately owned training centres, as well as recruiting more foreign pilots, he said.

"We are also very happy to see that many women are so enthusiastic about this industry and want to become part of it," Gao added. "Airlines have opened their doors to this, and the regulator has too."

Some Chinese airlines already have female pilots, and others are training, he said.

"I've heard they're quite pretty, though I've not seen them myself," Gao said.

But he also took aim at another problem plaguing the Chinese airline industry -- unruly passengers, who often attack staff or refuse to get off delayed aircraft until compensation has been paid.

Delays are often for safety reasons, Gao said.

"I must remind passengers that fixing an aircraft is not like fixing a bike, and there's no way to guarantee it'll be done in half an hour," Gao said.
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Old September 13th, 2007, 07:39 PM   #273
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Air China lifts China Eastern stake to 11pc
12 September 2007
South China Morning Post

Air China still wants more of China Eastern Airlines.

China National Aviation Corp, a sister company of Air China, increased its stake in China Eastern Airlines Corp just two days after China Eastern signed a preliminary agreement to sell a combined 24 per cent share to Singapore Airlines and Temasek Holdings.

The stake raising from 9.9 per cent to 11 per cent reignited speculation that Air China plans to take a leading role in the next round of consolidation among the big carriers.

"Air China may still hang on to fight for China Eastern since the deal has yet to be finalised," said Andrew Au, a transport analyst at Cazenove.

The proposed share acquisition has yet to be concluded since the two parties have not finalised the remaining terms of the transaction after agreeing on the price.

Air China wants to increase its influence over China Eastern, possibly even gaining a seat on its board of directors, another transport analyst said.

Singapore investors' proposed acquisition, even when finalised, will be subject to shareholder approval. As the largest single shareholder of China Eastern's H shares, Air China can have a major influence on the voting outcome.

The move came less than two weeks after Air China president Cai Jianjiang said he could not rule out a plan to consolidate with "brother companies", which he identified as China Southern Airlines, Hainan Airlines and Shanghai Airlines. The next day, China Southern and Air China denied any consolidation plans.

China National Aviation Corp, a subsidiary of China National Aviation, bought 17.5 million shares of China Eastern at an average price of HK$6.512 on September 4.

Total shareholding later increased to 172.7 million shares, representing 11.02 per cent of outstanding China Eastern H shares, according to disclosure statements filed with the Hong Kong stock exchange.

"The shares were bought by a subsidiary in Hong Kong, China National Aviation Corp (Group), and not by the Beijing office," said Huang Bin, Air China's company secretary.

Zhang Lanhai, the head of the company's equity investment department in Hong Kong, was not available for comment.
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Old September 14th, 2007, 03:30 PM   #274
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Air China to Add Flights to Toronto, Rome, 10 Cities

In case you guys missed my post in the Toronto Airport thread...

Air China to Add Flights to Toronto, Rome, 10 Cities
Excerpt:
"Sept. 11 (Bloomberg) -- Air China Ltd., the country's largest international carrier, will add flights to Toronto, Rome and 10 other European and North American cities by the end of 2009 as more people fly to China on holidays and business trips...."

Link: http://www.bloomberg.com/apps/news?p...w&refer=canada
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Old September 20th, 2007, 07:48 PM   #275
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Reports: China plane maker AVIC I in carrier partnership with China Eastern Airlines
20 September 2007

BEIJING (AP) - China's top plane maker China Aviation Industry Corp. I, or AVIC I, will establish a ready-made market by setting up a regional carrier served by at least 10 of its Xinzhou-60 turboprops, reports said Thursday.

The official China Daily newspaper said a letter of intent for a partnership with China Eastern Airlines had been signed at the end of August and operations were to begin in the first half of next year in Western China.

It did not say whether government approval had been given and calls to industry regulator, the General Administration of Civil Aviation of China, and China Eastern rang unanswered. No number was available for an AVIC I spokesman.

The airline could help AVIC I avoid the headache of marketing the 50-60-seat Xinzhou-60 turboprop, known outside China as the MA60. The plane has so far found buyers in just a few developing countries such as Zimbabwe and Laos.

The deal appears to skirt a ban on new airlines before 2010 that was recently announced by industry regulator CAAC as part of a bid to boost safety.

The CAAC said, however, it would "support and encourage" carriers, especially cargo airlines, based in less densely populated western and those flying Chinese-made aircraft.

AVIC I, a huge government-owned aerospace and auto parts conglomerate, said it anticipated demand for 3,365 additional airplanes by 2026, in line with U.S. plane maker Boeing's forecast of 3,400 new planes over the next two decades.

Along with the Xinzhou-60, the company's ARJ-21 -- China's first homegrown jet airliner -- is scheduled to roll off the production line by year's end.

The ARJ-21, which will seat up to 85, is aimed at making AVIC I a competitor to other makers of smaller passenger jets, such as Canada's Bombardier and Brazil's Embraer SA. It is also expected to lay the groundwork for the development of a Chinese commercial jet twice the size.
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Old September 24th, 2007, 03:40 PM   #276
hkskyline
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MISC | Chinese Airliners Photos

By visorprism from HKADB :























































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Old September 25th, 2007, 12:17 AM   #277
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OMG! They changed Hainan Airlines livery?!! WHY! The old one is so much better.

A lot of Chinese airlines are still missing.
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Old September 25th, 2007, 02:21 AM   #278
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l definitely love shanghai airlines livery, the new mandarin airlines colours, and china southern logo
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Old September 25th, 2007, 04:47 AM   #279
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9m-mrd livery is the best
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Old September 25th, 2007, 11:55 AM   #280
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I don't want to say this but the only Airlines I found beautiful is Air China. They need to redesign all of the airlines being posted except the one I just mentioned.They are more like 1980's design.
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