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Old May 30th, 2008, 10:28 PM   #461
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Mexico's largest airline opens twice-weekly flights to Shanghai

Published: May 29, 2008

Aeromexico, the largest airline in Mexico, has opened twice-weekly flights between the Mexican capital and Shanghai, China, an Aeromexico spokesman said on May 27.

The flights will facilitate bilateral economic, cultural and tourism exchanges between the two countries, said the spokesman.

The opening of the flights "is very important for reinforcing relations between Mexico and China, especially due to the occasion of the Olympic Games in Beijing," he said.

Aeromexico, which has a fleet of 70 Boeing planes and operates about 300 daily flights, plans to strengthen its presence in Asia despite the complex situation because of high fuel prices, the spokesman said.

http://www.avbuyer.com.cn/e/2008/24690.html
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Old May 31st, 2008, 03:25 AM   #462
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Quote:
Originally Posted by peacedot View Post
Mexico's largest airline opens twice-weekly flights to Shanghai

Published: May 29, 2008

Aeromexico, the largest airline in Mexico, has opened twice-weekly flights between the Mexican capital and Shanghai, China, an Aeromexico spokesman said on May 27.

The flights will facilitate bilateral economic, cultural and tourism exchanges between the two countries, said the spokesman.

The opening of the flights "is very important for reinforcing relations between Mexico and China, especially due to the occasion of the Olympic Games in Beijing," he said.

Aeromexico, which has a fleet of 70 Boeing planes and operates about 300 daily flights, plans to strengthen its presence in Asia despite the complex situation because of high fuel prices, the spokesman said.

http://www.avbuyer.com.cn/e/2008/24690.html

I'll bet this flight is going to be a huge success even way after the olympics. With the Major visa issue in the states most Latin American would not have need to transfer flight in the US, they can be done thru Mexico instead. Which ultimately would benefit AM on this flight as well as it's Tokyo flight...
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Old June 2nd, 2008, 10:13 PM   #463
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Paper air tickets no more in use in China

Published: Jun 02, 2008

China's airlines no longer issue paper tickets. The move was made in response to the International Air Transport Association, the main clearing house connection for airlines and travel agents.

Currently, e-tickets are generally used by most domestic carriers. Only a handful of international carriers and some for pertaining to infant tickets accept paper tickets. Global airlines, struggling with surging fuel costs, also stopped offering paper tickets on most flights yesterday, making bookings 90 percent cheaper to handle. The IATA says it will no longer supply paper tickets.

Electronic tickets already account for about 95 percent of bookings, driven by the rise of Internet sales and airlines seeking to cut 3 billion U.S. dollars a year in global processing costs.

http://www.avbuyer.com.cn/e/2008/24818.html
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Old June 11th, 2008, 08:57 AM   #464
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Grand China Airlines to set up carrier: official
10 June 2008
Agence France Presse

Grand China Airlines, in which US financier George Soros holds an 18.6 percent stake, plans to set up a joint venture to tap the tourism market in southwestern China, a company official said Tuesday.

An agreement for the venture between Grand China and the state-owned assets watchdog of Yunnan province was signed last week, said Xu Junpeng, a spokesman with Hainan Airlines, which set up Grand China in 2004 as a listing vehicle.

Xu told AFP the new company is still be subject to approval from the Civil Aviation Administration of China, the regulatory agency. He did not disclose any financial details.

The deal, if approved, is likely to pose a threat to China Eastern Airlines which saw two routes to popular tour destinations revoked recently after pilots turned back their planes in protest over work conditions.

Xu said the new company will mainly operate routes within the province, including routes from the provincial capital of Kunming to Xishuangbanna and Dali, also in Yunnan -- the two that China Eastern was stripped of.
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Old June 11th, 2008, 10:47 AM   #465
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^It is the time for Yunnan Airlines to resume its reputation. It was an unfair merger between China Eastern and Yunnan Airlines years ago, I am glad to see that the free competition, after all these years test and practice, is going to start at the commercial aviation industry in a much more mature manner, good news for China's commercial aviation industry.
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Old June 14th, 2008, 07:18 PM   #466
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Jet Airways Connects Three Major Commercial Cities With Its New Daily Flights From Mumbai To San Francisco Via Shanghai, Effective June 14, 2008

May 26, 2008: Jet Airways, Indias premier international airline will commence its daily services from Mumbai to San Francisco via Shanghai, effective June 14, 2008. Jet Airways will thus become the first Indian carrier to operate daily non-stop flights to Shanghai from Mumbai and onward to San Francisco.

more at: http://jetairways.wordpress.com/2008...-june-14-2008/
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Old June 15th, 2008, 11:32 AM   #467
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China's Hainan Airlines to build new Yunnan Airlines

11 Jun 2008 Content provided by:

China's Hainan Airlines<600221><900945>, the nation's fourth largest carrier in terms of fleet size, announced on Monday that Hainan Airlines Group has inked a strategic cooperation agreement with the State-owned Assets Supervision & Administration Commission of Yunnan Province to jointly set up a new airline company based in Yunnan.

The registered capital of the new Yunnan Airlines Co. Ltd will be no less than RMB 3 billion, with investments from the State-owned Assets Supervision & Administration Commission of Yunnan Province and Grand China Air Co. Ltd. The new airline will take over the operations of Yunnan-based Lucky Air, which is owned by Hainan Airlines, and will be managed by Grand China Air Co. Ltd, the parent of Hainan Airlines..

The move indicates Hainan Airlinesmeans that they will have market preference among all the airlines planning to expand into the Yunnan airline market.

The original China Yunnan Airlines, founded in 1993, was a pillar enterprise of Yunnan. However, the province lost its local airline company when the airline merged with China Northwest Airlines to form China Eastern Airlines in 2003.

http://logistics.hktdc.com/content.a...oid=343&w_jid=
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Old June 16th, 2008, 10:39 AM   #468
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US airlines seek help to defer China, other service

WASHINGTON, June 15 (Reuters) - U.S. airlines say they cannot afford to fly new routes or maintain all flights to China and other countries that restrict access, but they still want to keep their rights to serve those destinations.

Carriers asked the Bush administration to preserve rights for two years, an unusually long time, while they scramble to reverse a financial nose dive blamed on expensive fuel prices.

"All U.S. airlines are being forced to re-evaluate the flights they offer to avert financial catastrophe," the carriers wrote in a joint application to defer service.

"In the present emergency circumstances, the resources of the carriers and the (government) should be focused on preserving the air transportation system and the viability of U.S. carriers," they said.

American Airlines, a unit of AMR Corp ; Delta Air Lines Inc ; United Airlines, a unit of UAL Corp ; US Airways Group Inc ; Continental Airlines Inc ; and Northwest Airlines Co expect a decision soon from the Transportation Department.

They suggest others could fly the unused routes temporarily, but insiders say that would not happen.

UNIQUE REQUEST

Privately held Spirit Airlines called the proposal an anti-competitive effort by bigger rivals to "deep-freeze" valuable routes while slashing other service.

The government granted similar waivers twice this decade. The first, only for four months, followed the 2001 hijack attacks on New York's World Trade Center and the Pentagon that accelerated the industry's worst-ever downturn. The second, for one year, occurred at the start of the Iraq war.

The latest request, if granted, would represent one of the only government steps to assist airlines during the current downturn, which some analysts predict could be worse than the last one from 2002-06 when four big airlines went bankrupt.

A Transportation Department spokesman said the rights request was being evaluated. Airlines want a decision soon.

Andrew Steinberg, an attorney with Jones Day and a former senior U.S. official on international aviation matters, said he did not know how regulators would react. He guessed they might be sympathetic since carriers appealed collectively.

Steinberg noted that the industry is "clearly in financial extremis" and said the government "has to recognize" airlines cannot fulfill all of their overseas plans because fuel is so expensive.

"I think it's a shame because international service is where the profits have been and where the growth is," he said.

$61 BILLION FUEL COST

U.S. airlines are on track to pay more than $61 billion for fuel this year, up $20 billion over last year. Analysts expect heavy losses this quarter and possible bankruptcies in 2009.

Airlines did not specify where they want to halt or slow service but some have said individually that China routes are too costly. Waivers would be required to defer or suspend some or all service to China, Brazil, Mexico, Japan, and several other countries where access must be negotiated by governments.

Service rights are awarded usually after lobbying efforts by airlines. Start times are ordered by regulators.

Overseas routes are valued because of premium business traffic, especially to Asia. China routes have been coveted recently due to this year's Olympics.

Nonstop weekly U.S.-China flights are up 16 percent this year over last to more than 200, industry figures show.

"Air travel in Asia will continue to grow despite the current crisis," said Steve Lott of the International Air Transport Association, a trade group.

Bigger airlines are slashing domestic capacity to focus more on global flying. But establishing routes or maintaining long-haul service to restricted cities requires large investments for infrastructure, aircraft, and crew training, as well as time and money to clear regulatory hurdles.

US Airways said higher fuel expenses would add $50 million to the already planned $40 million cost of its Philadelphia-Beijing service, which it now wants to put off.

US Airways was included in a 2007 U.S. order that awarded new or additional China service to begin this year and next. Continental, Northwest and Delta were also awarded routes.
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Old June 16th, 2008, 12:56 PM   #469
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Chinese Airliners are getting bigger and competitive. Love it!
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Old June 18th, 2008, 04:15 AM   #470
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Air China's May Passengers Dn 10.7%
Canceled Flights On Quake

16 June 2008

HONG KONG (Dow Jones)--Air China Ltd. (0753.HK) carried 10.7% fewer passengers in May than in the same month last year because of a slowdown in demand and the cancelation of nearly 1,000 flights because of the earthquake in Sichuan province, the country's flag carrier said in a statement late Monday.

The airline carried 2.67 million passengers in May, it said. Its passenger load factor, or the percentage of seats sold, fell to 71.3% last month, down 4.5 percentage points from May 2007.

'The earthquake had a significant impact on the company's normal flight operations considering (Sichuan province's capital of) Chengdu is the most important hub outside Beijing,' the company said.

Because of the earthquake, Air China canceled 985 flights, while the type of aircraft used on another 623 flights had to be adjusted, it said.
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Old June 23rd, 2008, 11:54 AM   #471
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Delta Air Lines trimming US to China service
20 June 2008

ATLANTA (AP) - Starting this fall, Delta Air Lines Inc. will cut the number of flights it offers between the U.S. and China -- a route it fought to get for years.

The carrier projects that demand for its flights between Atlanta and Shanghai, which it began offering March 31, won't be as strong this winter as it is now. It plans to return to its current schedule on the route next spring.

Asked Friday if the soaring cost of fuel played a role in the decision, Delta spokesman Kent Landers said, "Fuel has an impact on the entire network and we watch that very closely. But this is a situation where we're matching the right profile to the market and especially what we're expecting in the winter."

The price of a barrel of oil has doubled in the last year.

In May two other carriers that only months earlier won federal approval to begin highly coveted routes to China said they would postpone the launch of the new services because of high fuel costs. The routes in question included planned United Airlines service between San Francisco and Guangzhou, and US Airways flights between Philadelphia and Beijing.
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Old June 23rd, 2008, 01:20 PM   #472
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http://www.flightglobal.com/articles...china-and.html
Quote:
DATE:20/06/08
SOURCE:Flight International


Opening the flood gates: airlines allowed to fly between China and Taiwan

By Brendan Sobie

In a long-awaited political breakthrough, Chinese and Taiwanese carriers will receive a much needed boost with the launch early next month of regular flights between the two countries for the first time in nearly half a century.

The new flights between Taiwan and mainland China will provide a financial boost to 11 carriers in a move that most commentators believe will not adversely impact carriers from Hong Kong and Macau, which have traditionally carried a large chunk of Taiwan-China traffic.

Six Chinese and five Taiwanese carriers have been authorised to operate 36 weekly flights combined across the Taiwan Strait following a landmark agreement reached last week between China and Taiwan.

Regular flights have not been allowed between China and Taiwan since 1949 when the two sides split following a civil war. For the last three years the two sides have agreed to allow a few ad hoc charter flights during the Chinese New Year holiday season.

Under the new agreement regular charter flights will be allowed every Friday, Saturday, Sunday and Monday, starting on 4 July.

The flights represent a significant breakthrough for Taiwanese carriers, which have been hoping for years to serve mainland China and have been banking on the market opening up to offset the rapid decline of Taiwan's domestic market since the launch of high-speed train services at the beginning of 2007.

Taiwanese carriers, many of which are now struggling financially, have since seen the domestic market drop by about two million passengers per year, or 25%.

The ability to operate regular flights to Taiwan comes also at a good time for Chinese carriers because in recent months they have seen a drop in demand in their domestic and international markets.

The 36 flights are expected to carry a little less than one million passengers annually, based on an average aircraft size of 250 seats. But more significantly, as part of the deal the Chinese government will begin allowing up to 3,000 mainland Chinese residents to visit Taiwan per day.

This will result in an extra two million passengers per year travelling across the Taiwan Strait, meaning the extra demand caused by the agreement will far outstrip the extra supply.

The Taipei Airlines Association, which represents all five of Taiwan's active scheduled carriers, says the mainland China-Taiwan market now consists of about 8 million passengers annually, based on visitor data from Taiwan's Mainland Affairs Council, and this will immediately grow to 10 million.

However, figures from IATA's PaxIS product, which is based on tickets issued, show the size of the market is now about 6 million passengers annually. Shanghai-Taipei is by far the largest city pair (see chart), accounting for about 40% of all passengers travelling between mainland China and Taiwan.

Besides Shanghai, flights will be operated to Taiwan from Beijing, Guangzhou, Nanjing, and Xiamen.

Association of Asia Pacific Airlines director general Andrew Herdman points out that the market has traditionally been mainly a business market due to visa restrictions but this will change quickly as more mainland Chinese are permitted to holiday in Taiwan.

"I think we'll see the market increase substantially. The market could double or triple in size," he says. "There is a lot of latent demand."

This is good news for the Hong Kong and Macau airports and carriers based in these two special administrative regions of China.

Historically about 60% of traffic between mainland China and Taiwan has transited in Hong Kong, 30% in Macau and the rest at other points such as South Korea's Jeju island. Air Macau and Cathay Pacific subsidiary Dragonair, in particular, have historically relied heavily on the mainland China-Taiwan market, although in recent years they have adjusted their strategies to diversify their business in anticipation the market would eventually open up to non-stop flights.

Industry sources say the Chinese government wants to make sure Hong Kong and Macau are not impacted by the new policy.

They expect the cap of 36 weekly flights will gradually be increased over the next few years, perhaps reaching 100 flights, but the Chinese government is expected to make sure that the capacity provided by the new direct flights equals or is less than the extra demand generated by the new policy.

The Airport Authority of Hong Kong says it "welcomes the launch of direct cross-strait air services", adding: "We believe that in the short-run, the impact for Hong Kong's aviation and logistics industries will be relatively small.

"In medium- to long-term, we believe that the launch of direct cross-strait air services will help foster closer ties of economic partnership, trade, social and cultural exchange between Hong Kong, Taiwan and Chinese Mainland.

"It will also bring more economic and tourist activities as well as increasing demand for air services. We are confident that in the long-run, Hong Kong will be benefited by the increasing flows of passenger and cargo."

Herdman agrees, pointing out that while some traffic flows will change, the market will grow in size overall and that many of the Taiwanese have business connections in the Pearl River Delta region of China, which is accessed easily from Hong Kong.

"The key thing is to focus on what is the size of the market," he says. "The warming of relations across the Strait is positive in terms of commercial business and in terms of the size of the market."

Taiwan accounted for 18% of Hong Kong's 45 million passengers in fiscal 2006-07, according to the Airport Authority of Hong Kong.

In fact, Hong Kong-Taipei is the largest and one of the most lucrative routes in the world. Roughly 60% of traffic between Hong Kong and Taipei - and about 80% of traffic between Macau and Hong Kong - now connects on to flights to mainland China.

While Dragonair and Air Macau offer connecting flights between Taiwan and mainland China, Taiwanese carriers also have in place comprehensive interline and pro-rate agreements with mainland Chinese carriers that ensure they receive a good chunk of the lucrative mainland China-Taiwan market.

Figures from IATA's PaxIS product show the average one-way fare in the market was $422 last year, up from $414 in 2006. In March of this year, the latest month available, the average one-way fare had increased to $455.

The fares in the mainland China-Taiwan market are generally set by pro-rate and interline agreements.

Sources say the new non-stop flights will be priced slightly higher, with passengers being asked to pay for the added convenience of non-stop flights.

Costs for these flights, however, will be significantly lower due to their more direct routing and avoidance of transit costs. Therefore, the flights are expected to be highly profitable with load factors at or near 100% due to the fact demand will far outstrip supply.

If the market fully liberalises and airlines are free to fly as many flights as they want across the Strait, significantly lower fares would likely result and this would stimulate the market and lead to a dramatic increase in the number of passengers.

But this is unlikely to happen as the mainland China-Taiwan market is expected to remain highly regulated with a cap that will force most passengers to continue to travel via Hong Kong and Macau.

As a result, major carriers are expected to reap the benefits while low-cost operators will at least initially be shut out of this important new market.

All five of Taiwan's active scheduled carriers have been authorised to operate the new flights - China Airlines, EVA Air, Mandarin Airlines, TransAsia Airways and UNI Air. China has authorised six of its carriers - Air China, China Eastern, China Southern, Hainan Airlines, Shanghai Airlines and Xiamen Airlines.

Leading city pairs in China-Taiwan market
City Pair 2005 2006 2007
Shanghai-Taipei 1,056,000 1,179,000 1,249,000
Beijing-Taipei 227,000 257,000 274,000
Shanghai-Kaohsiung 167,000 183,000 198,000
Xiamen-Taipei 149,000 141,000 134,000
Shenzhen-Taipei 81,000 99,000 55,000
Fuzhou-Taipei 71,000 74,000 72,000
Guangzhou-Taipei 70,000 61,000 69,000
Hangzhou-Taipei 65,000 100,000 104,000
Nanjing-Taipei 61,000 92,000 84,000
Source: IATA PaxIS. Notes: one-way traffic China to Taiwan
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Old June 25th, 2008, 08:07 AM   #473
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^ Yes, I have more info on the cross-straits flights in another thread under this section.

US Airways signs code-sharing deal with Air China
23 June 2008
Agence France Presse

US Airways said Monday it had signed a code-sharing deal with Air China Limited that affects routes including Beijing-Los Angeles and San Francisco-New York.

US Airways will also put its code on connecting flights to Shanghai through Air China's Beijing hub under the deal

Air China will put its code on US Airways flights from Los Angeles and San Francisco to Phoenix, Arizona; Las Vegas, Nevada; Charlotte, North Carolina; and Philadelphia and Pittsburgh, Pennsylvania.

"We continue to expand our network across the Pacific through our codeshare partners. Air China provides our customers with three US gateways to Beijing and Shanghai, and we now have codeshare arrangements to over 20 destinations in the Asia-Pacific region," said Andrew Nocella, US Airways' senior vice president.

The two airlines are part of the Star Alliance.
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Old July 2nd, 2008, 10:33 AM   #474
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Ethiopian Airlines hires Chinese hostesses
25 June 2008
Agence France Presse

Ethiopian Airlines has hired Chinese hostesses in a bid to secure a larger share of growing traffic between Asia and Africa, the carrier said on Wednesday.

"We have recently recruited five Chinese flight attendants as we are increasing the frequencies to China. They are still training but will graduate soon," Leul Teklemedhin, the airline's public relations head, told AFP.

"All of our Chinese passengers may not speak English, so the company's aim is to cater to their needs as much as possible" he added.

The Horn of Africa nation's flagship carrier currently operates 13 flights a week to Beijing, Guangzhou and Hong Kong. It plans to raise that number to 17 by the end of August.

"Business is increasing between the two countries. As a result, so is the traffic," Leul added.

Ethiopian Airlines, which serves about 50 destinations around the world, announced last month that its nine-month revenue hit a record 660 million dollars, up by 29 percent from last year.

The state-owned airline, along with a few others, is considered to spearhead Africa's growing airline industry with its modern jets and safety standards.
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Old July 2nd, 2008, 09:10 PM   #475
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Hehe, I noticed that thread too late, hkskyline.
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Old July 2nd, 2008, 09:10 PM   #476
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Old July 5th, 2008, 12:00 PM   #477
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China discusses feasibility of large aircraft program

2008-07-03

China's aviation experts have started to discuss the feasibility of the country's large airplane manufacturing program, something which indicated it had entered an advanced stage of researching and manufacturing the large aircraft.

The feasibility demonstration of the program includes the overall technology plan, types of airplanes, customer service and production scale, said a China Aviation Industry Corporation I (AVIC I) expert who declined to be named.

Discussions will also focus on the the large aircraft program's airworthiness certificate, market prospects, human resources, airborne equipment, composite materials and financing.

The feasibility was expected to take six months, the source said.

Experts from the AVIC I and China Aviation Industry Corporation II (AVIC II) were asked to make all-out efforts for the work. At present, nearly 200 researchers planned to participate in the feasibility work.

China's first large passenger aircraft company, a major part of the nation's large jet program, was officially inaugurated in Shanghai on May11.

The newly-established company, Commercial Aircraft Corporation of China Ltd. (CACC), will be responsible for researching, developing, manufacturing and marketing the homegrown aircraft.

The CACC establishment was approved in February 2007 by the State Council, China's Cabinet. This was to make the country capable of building aircraft with a take-off weight of more than 100 tonnes, or planes with more than 150 seats.

It is widely regarded the CACC's first large aircraft will roll off the production line by 2020.

http://www.chinadaily.com.cn/bizchina/2008...ent_6816973.htm
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Old July 5th, 2008, 12:00 PM   #478
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Large helicopter or large aircraft?

2008-07-04

Helicopters, especially Russian-made Mi-26 heavy helicopter, have demonstrated an irreplaceable role in the recent disaster-relief efforts in Sichuan Province. Now some are calling on the development of heavy helicopters in China, but others are seeing the development of large aircraft as key for China's aviation industry.

The May 12 earthquake and subsequent landslides toppled many buildings, blocked roads, destroyed bridges and damaged railways, leaving thousands of people buried under debris, waiting for relief.


In the days following the disaster, helicopters demonstrated their unique advantages, which are unmatched by any other means of transportation.


They proved useful beyond that of even fixed-wing planes, because they needed only a few dozen square meters of space to land and take off. In addition, they can hover over one spot and can even move backward, University of National Defense professor Li Daguang explained. However, currently, the number of helicopters in China is small relative to its geographic size, he added.


According to statistics provided by China Aviation Industry Corporation II (AVIC II) assistant chief engineer Wang Bin, China has about 160 civilian-use helicopters, compared with more than 530 in Brazil, 1,600 in Canada, 3,000 in Russia and 10,000 in the United States. In addition, only a small number of these are domestically manufactured, and most are imported from the United States, Russia and France, he said.


During the relief work, helicopters were the primary means of transport to and from Tangjiashan, where a swelling lake formed when landslides blocked the river, the banks of which are threatening to burst and flood. Large machines, such as bulldozers and excavators, were unable to pass along the roadways and must be airlifted in.


The most impressive helicopter during the disaster-relief efforts was the Russian-made Mi-26 heavy-lift helicopter, which was used to transport bulldozers and excavators to the Tangjiashan quake lake's banks.


According to statistics, from May 12 to June 30, Mianyang airport secured an accumulative 187 Mi-26 helicopter flights for Tangjiashan quake lake relief work. They have carried more than 400 people, 153 tons of fuel and 55 units of large equipment.


The Mi-26 helicopter, one of the biggest helicopters in the world, was designed for carrying large cargo weighing up to 20 tons.

Li Daguang of the University of National Defense believes China should develop heavy-lift helicopters and expand the capabilities of its existing mid-size models.


Wang explained that China had previously lacked the economic capacity to develop heavy-lift helicopters.


"Just like large passenger planes, developing heavy helicopters demands huge investments and technological support," he said.


But with China's GDP growing and technology advancing from previous projects, now might be a good time to consider developing 20-ton heavy helicopters, Wang said. Past international experience suggests developing such helicopters would require at least 10 billion yuan ($1.44 billion) and take between five and eight years, he added.


Limited airspace has placed China's general aviation sector -- the country's major helicopter user -- far behind the scheduled flights sector. Today, only 15 of China's 40 general aviation firms own copters, he said.


Some people hold different opinions. China's aviation industry still has many gaps and one of them is large aircraft, said an article published in the Defence Weekly. The heavy helicopter is still too far away for China's helicopter industry, said the article. Currently, it is more advantageous and urgent to thoroughly research general mid-size transport helicopters than the heavy helicopter, according to the newspaper.


Large aircraft are key for China's aviation industry, said the article. There will be a good development opportunity for revitalization of the helicopter industry after the relief work, but there is still a long way to go for the development of large helicopters, said the article.


China's first ever jumbo passenger aircraft company was officially inaugurated in Shanghai on May 11. The company, named Commercial Aircraft Corporation of China Ltd (CACC), will be responsible for researching, developing, manufacturing and marketing the homegrown large passenger aircraft.


Establishment of CACC was approved in February 2007 by the State Council, China's Cabinet. This was to make the country capable of building aircraft with a take-off weight of more than 100 tons, or planes with more than 150 seats.


State-level resin matrix composite structure and manufacture technology research and application center was established in Harbin Aircraft Industry Group recently. The company will jointly undertake the task of researching and manufacturing homemade composite materials with many domestic companies to research and manufacture advanced composite materials for China's aviation products such as the large aircraft.


China's aviation experts have begun discussing the feasibility of the country's large airplane manufacturing program, which indicates the nation has entered an advanced stage of researching and manufacturing large aircraft.

http://chinadaily.com.cn/bizchina/20..._6821172_2.htm
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Old July 17th, 2008, 07:52 AM   #479
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Xinhua News:
Chinese company seals deal with Bombardier at Farnborough Air Show

Air China orders 45 new planes

Residents near Pudong International Airport to be moved
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Old July 26th, 2008, 09:10 AM   #480
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China Eastern, Shanghai Air may merge - report

SHANGHAI, July 23 (Reuters) - China's central government and the Shanghai city government are discussing merging Shanghai Airlines with China Eastern Airlines, major Chinese business magazine Caijing reported on its website on Wednesday.

High global oil prices and slowing growth in China's air passenger traffic have increased speculation the government may encourage restructuring in the industry.

"At present the discussion is between government agencies, and the two companies have not taken part," the magazine quoted an unnamed, senior source in Shanghai's aviation industry as saying.

Senior officials at both Shanghai-based airlines, contacted by Reuters, said they had not heard of such a plan and had not held talks. China Eastern will issue a statement soon to clarify the situation, said a senior executive at the airline, who declined to be identified.

Talk of a merger of China Eastern, controlled by the central government, and Shanghai Air, owned by the municipal authorities, has been swirling for more than five years, but neither wants to be the takeover target.

Shanghai Air Chairman Zhou Chi said repeatedly his firm would stick to an independent path, denying speculation of a merger with bigger domestic peers, especially its larger hometown rival.

"Airlines are having a hard time now as fuel prices rise and passenger volume drops. They don't really have much choice if the government backs the deal," said Ma Ying, an industry analyst with Haitong Securities.

The report, combined with a further fall in oil prices from record highs, boosted the airlines' shares.

China Eastern's Hong Kong-listed shares surged 9.3 percent to HK$2.59 by late afternoon trade, while its Shanghai shares jumped 4.6 percent to 7.80 yuan. Shanghai Airlines , a much smaller carrier, was up 5.4 percent at 6.64 yuan in Shanghai, outperforming a flat overall market.

COMPETITIVE THREAT

The management of China Eastern, the country's third-biggest carrier, has been seeking to sell a 24 percent stake to Singapore Airlines for $920 million, but the Chinese carrier's minority shareholders voted down the proposal in January.

Although China Eastern's chairman has said he was still pursuing a deal with Singapore Air, many industry analysts believe a deal is unlikely because of price, the weak aviation market and opposition from flag carrier Air China .

A Singapore Air spokesman said the company was still talking with China Eastern, but the discussions were more about areas of cooperation than about buying shares.

Shanghai is the only city in China that houses two carriers and neither is strong enough to compete with global industry heavyweights such as Lufthansa AG and Continental Airlines , which are expanding aggressively in the country.

Carriers are also facing a dip in demand.

Chinese airlines' passenger numbers fell 3.8 percent in June from a year earlier as natural disasters discouraged air travel, extending a drop in May that broke the industry's steady record of monthly growth in China's economic boom.

A dull global economy and strict airport safety checks in the run-up to the Olympic Games in August have also been blamed for slowing air traffic growth.

Industry executives have said they expected a pick-up in air traffic again in September, when airport security checks return to normal. ($1 = 6.828 Yuan)
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