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Old March 7th, 2009, 07:41 PM   #581
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Shenzhen Airlines to start direct flights to Bangkok

SHENZHEN, March 7 (Xinhua) -- Shenzhen Airlines, China's fifth largest air carrier, announced Saturday it will start direct flights between Shenzhen and Bangkok from March 31.

The ZH9793 service, on a Boeing 737-800 aircraft, will depart Shenzhen at 11:30 p.m. on Tuesdays, Thursdays and Saturdays and arrive in Bangkok at 1 a.m. local time the following days, the airline said in a press release.

Flights numbered ZH9794 will leave Bangkok at 2:30 a.m. local time on Wednesdays, Fridays and Sundays and arrive in Shenzhen at 6 a.m. Beijing time the same day.

The privately-owned airline said in the statement that it was planning to launch direct flights from Shenzhen to Southeast Asian cities, including Singapore and Hanoi, without giving specific schedules.
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Old March 8th, 2009, 02:20 PM   #582
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Can someone explain to me why is China Eastern Airlines constantly the worst-performing of the big 3? I would think a hub at Shanghai, properly harness, would be profitable for the airlines... But clearly, I was wrong.
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Old March 10th, 2009, 09:49 AM   #583
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Chinese airlines reviewing aircraft deliveries -CAAC

BEIJING, March 4 (Reuters) - The head of the Civil Aviation Administration of China said on Wednesday that Chinese airlines would respect signed contracts for aircraft orders but would negotiate the timing of those deliveries.

Li Jiaxiang, CAAC's director general, told reporters that Chinese airlines are reviewing their needs for new aircraft according to changing market conditions, and could also seek to alter the composition of orders to include more smaller aircraft. ($=6.84 yuan)
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Old March 10th, 2009, 09:51 AM   #584
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Quote:
Originally Posted by ddes View Post
Can someone explain to me why is China Eastern Airlines constantly the worst-performing of the big 3? I would think a hub at Shanghai, properly harness, would be profitable for the airlines... But clearly, I was wrong.
Big doesn't always mean profitable. By that logic, wouldn't American carriers be profitable since there is a huge wealthy population who can afford to fly and many parts of the country are not reasonably accessible by car (based on travel time, not infrastructure availability).

I'd argue that making money out of a major city is even harder due to increased competition which put a strain on fares. The most lucrative routes may surprisingly be that sole flight perhaps a few times a week to some unknown place that is not accessible otherwise. You can milk the customer to death for a seat (anyway, that's the fun world of revenue management).
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Old March 10th, 2009, 01:42 PM   #585
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Xinhua News:
First China-assembled A320 to be delivered in June: mayor
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Old March 11th, 2009, 08:15 AM   #586
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Quote:
Originally Posted by ddes View Post
Can someone explain to me why is China Eastern Airlines constantly the worst-performing of the big 3? I would think a hub at Shanghai, properly harness, would be profitable for the airlines... But clearly, I was wrong.
to understand that matter, you need to understand how a Chinese state own government operate and what its obligations are. They have to be responsible for much more employee welfare related expenses and government ordered taxation than otherwise say a private company.

Large state enterprises such as China Eastern are the largest single source of Chinese government's income. All the other taxes combined aggergrate to a bigger value, but it won't be that much higher.


The big carriers in North America just doesn't compete in many of these catagories
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Old March 14th, 2009, 05:23 PM   #587
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Shanghai Air says may return to profit in 2009

SHANGHAI, March 13 (Reuters) - Regional carrier Shanghai Airlines may return to a profit in 2009, if an expected pick-up in air traffic materialises next month, its chairman, Zhou Chi, said on Friday.

He added that the company had no plans for lay-offs this year.

The airline in January said it expected its net loss for 2008 to have at least doubled from the previous year's 435 million yuan ($63.62 million) loss, as the passenger travel market weakened.

The company also plans to raise 1 billion yuan via a private placement of shares to bolster its working capital. [ID:nSHA85121]

Zhou also told reporters that the company had not been informed about any plans for a possible merger with China Eastern Airlines , and that the parent companies of the two airlines had not discussed the possibility of a merger between themselves.

Government and industry sources have told Reuters the Chinese government was discussing the possibility of brokering a merger of Shanghai-based China Eastern and smaller Shanghai Airlines, although the two airlines themselves have said they had not discussed such a move.

"I haven't been informed by the Shanghai government or our parent about the possibility of a merger with China Eastern," Zhou said.

Speculation has mounted of a major restructuring of China's loss-making airline industry, as carriers seek government aid to withstand a slump in passenger traffic that has accompanied the economic slowdown.

Zhou said Shanghai Airlines would not be using its quota from the authorities for two or three new aircraft this year and next, adding that the carrier was also in discussions with Boeing Co on whether to accept an order for a 787 Dreamliner aircraft ordered previously. ($1=6.837 Yuan)
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Old March 15th, 2009, 05:18 AM   #588
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Is China Southern, or China Eastern somewhat privatized? Chinese carriers should focus more on improving their services after all these years I don't really see any changes between theses big Chinese carriers besides merging with other smaller ones. China has a very big domestic market and many foreigners do go to China too so these Chinese carriers have a great advantage to turn themselves into some of the most successful or largest airlines of the world. I know Cathay Pacific has some stakes in Air China I don't know how much influence they have but Air China can learn quite a lot of stuff from Cathay Pacific.
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Old March 17th, 2009, 05:09 PM   #589
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By dynasty641 from HKADB :





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Old March 17th, 2009, 06:08 PM   #590
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Quote:
Originally Posted by zergcerebrates View Post
Is China Southern, or China Eastern somewhat privatized? Chinese carriers should focus more on improving their services after all these years I don't really see any changes between theses big Chinese carriers besides merging with other smaller ones. China has a very big domestic market and many foreigners do go to China too so these Chinese carriers have a great advantage to turn themselves into some of the most successful or largest airlines of the world. I know Cathay Pacific has some stakes in Air China I don't know how much influence they have but Air China can learn quite a lot of stuff from Cathay Pacific.
They are listed in Hong Kong, but it is not totally a private company due to continued state holdings.

Private airlines haven't fared too well in China of late.

Air China hopes for govt funds, pursues East Star

TAIPEI, March 16 (Reuters) - China's flag carrier Air China said on Monday it continues to hope for a government capital injection, as it vowed to press ahead with an acquisition despite being rebuffed, its chairman said on Monday.

"We're still financially healthy, but of course we hope for government help," Air China Chairman Kong Dong told reporters during a ceremony to open its first office in Taiwan. "But even if we don't get any help, we'll still be able to weather the current crisis."

Kong had said in early March that the airline hoped to be profitable in 2009, and that it has asked the government for a cash injection of at least 3 billion yuan.

Air China's main rivals China Eastern and China Southern have both received aid of up to 3 billion yuan from the Chinese government.

Another company executive, senior vice president Tan Zhihong, also said Air China expects to make a 6 billion yuan ($878 million) loss in 2008, more than the 5.6 billion yuan loss that analysts polled by Reuters Estimates were expecting.

Like their international rivals, airlines in China have been struggling with slowing demand for air travel, volatile fuel prices and tighter access to credit.

Despite losses last year, Kong said his airline intends to push ahead with its planned acquisition of East Star Airlines, a small carrier based in the central Chinese city of Wuhan that was grounded on Sunday for being unable to pay back heavy debts.

"We have a responsibility to acquire, merge with or help airlines that are struggling right now," Kong said. "The notion that East Star might reject our help is probably the view of a small minority."

The proposed takeover is just the latest in China's airline industry which, like its global peers, has been hard hit by high oil prices followed by a plummet in demand during the global downturn.

Another proposed merger between Shanghai Air and China Eastern is still unresolved.

Sources said previously that the government is brokering a merger of the two, but Shanghai Air's chairman said last week he has not been informed of a merger by the government and the two have never discussed the issue.

Separately, at the Air China office opening in Taipei, Taiwan officials said they are aiming to strike a deal with China on expanding their cross-strait flight routes to include other global destinations. ($1= 6.8 yuan)
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Old March 18th, 2009, 10:30 AM   #591
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Source: airliners.net

Last edited by zergcerebrates; March 18th, 2009 at 11:06 AM.
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Old March 18th, 2009, 07:28 PM   #592
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Troubled private Chinese airline says president missing
18 March 2009
Agence France Presse

The president of a troubled private airline in China has gone missing, the company said Wednesday, amid reports he was taken away by police.

East Star Airlines, based in the central city of Wuhan, confirmed its president Lan Shili had disappeared.

"The government has informed us that all we can tell the media is we have a problem in operations. We are also looking into president Lan's whereabouts," an executive, who declined to be named, told AFP.

"We don't believe president Lan would flee just because of the current difficulties."

Financial magazine Caijing reported Wednesday that Lan was taken away in the southern city of Zhuhai as he tried to flee China due to "heavy debt." He is now in Wuhan with his movements being monitored by police, it said.

East Star Airlines owes the Hubei Airport Group more than 60 million yuan (8.8 million dollars) in fees including house rent and take-off and landing charges, Caijing said, citing an unnamed source with the airport group.

It also owes an unknown amount of money to US leasing firm GE Commercial Aviation Services, which agreed in 2005 to rent East Star 10 planes for 15 years at the price of 300,000 dollars a month, the report added.

The Civil Aviation Administration of China ordered the airline to suspend operations from Sunday upon a request from the Wuhan government.

The government hoped the suspension would prompt East Star to accept an acquisition bid by China National Aviation Holding Company, parent of flag carrier Air China, but East Star rebuffed the takeover, Caijing said.
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Old March 21st, 2009, 06:03 AM   #593
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Reports: Grounded carrier China East Star airline chief detained
19 March 2009

SHANGHAI (AP) - The president of one of China's struggling private air carriers, East Star Airlines, has been detained by police while allegedly trying to flee the country to evade huge debts, a respected financial magazine and other reports said Thursday.

Police caught Lan Shili, president of East Star, at the airport in Zhuhai, in southern China, and escorted him back to the central Chinese city of Wuhan, where the airline is based, Caijing magazine reported, citing unnamed sources.

East Star is one of several private carriers that are struggling for survival amid an industry downturn that has battered even big, state-run carriers that, unlike their smaller rivals, are getting billions of dollars in government support.

Authorities ordered East Star flights grounded on March 15 after the carrier failed to pay plane rental fees to Fairfield, Conn.-based GE Commercial Aviation Services, General Electric's aircraft leasing company, according to the Wuhan city government.

An anxious sounding staffer in the company's public affairs office said Thursday they were trying to locate Lan.

"No one will tell you anything," he said, refusing to give his name as is typical of many media-shy Chinese officials.

Staff at the Wuhan police headquarters said they were not familiar with Lan's case.

East Star recently became a takeover target of Air China, the country's main Beijing-based carrier. Lan objected to the plan but was stymied over how to repay East Star's debts of over $8.8 million, Caijing said.

Air China, which has sought to acquire regional airlines with bases in cities where it faces strong competition from other big carriers, covets East Star's hub in Wuhan.

Wuhan city officials met earlier this week and endorsed the takeover plan as the only way to handle the airline's 500 million yuan ($73 million) in debts, the state-run newspaper National Business Daily reported, citing Wuhan city spokesman Tan Shizhang.

East Star, set up in 2006, was operating about 20 domestic routes from Wuhan.

Meanwhile, another private carrier, United Eagle Airlines, said it accepted a $27 million capital injection from state-owned Sichuan Airlines, which as a result gained a controlling 76 percent stake in United Eagle.

------

Associated Press researcher Ji Chen contributed to this report.
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Old March 24th, 2009, 06:35 PM   #594
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Old March 25th, 2009, 10:36 AM   #595
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I really do love Air China's colorful liveries. Much less lame than China Eastern's Shanghai World Expo painted planes.

Maybe they should design a new livery based on their colorful livery. Keep the tail and titles though, they're what makes Air China Air China.
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Old March 25th, 2009, 06:22 PM   #596
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Chinese teenage stowaways found on U.S.-bound plane

BEIJING, March 25 (Reuters) - Three Chinese teenagers were discovered trying to stow away in a New York-bound Boeing 747 by hiding in the cabin roof, the Beijing News reported on Wednesday.

The 17-year-old boy and two 16-year-old girls were discovered by a security guard at Beijing airport on Monday.

They had boarded the Air China plane in Shanghai. During a stop-over in Beijing, they entered the cabin crew's rest area and climbed into the overhead section through a maintenance porthole, the paper said.

The three had instructions on their cell phones, indicating the possibility of an inside job, it said.

All three came from Fujian, a province famous for its "snakeheads," or human smugglers, who help traffic Chinese to Europe and North America.
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Old March 26th, 2009, 08:12 AM   #597
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Old March 26th, 2009, 08:24 AM   #598
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Old March 26th, 2009, 08:28 AM   #599
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Old March 26th, 2009, 08:45 AM   #600
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I liked the B737 and A320 of Air China. Too East Star Air is very good. Very nice pictures. Regards from Colombia.
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