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Old September 15th, 2010, 08:30 PM   #781
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INTERVIEW: China Eastern To Boost Capacity, Expand Network
14 September 2010

HONG KONG (Dow Jones)--China Eastern Airlines Corp. (CEA) plans to boost capacity by around 8%-10% annually over the next few years as the Shanghai-based carrier moves to expand its international network amid surging demand for outbound travel, Executive Director Luo Zhuping said Tuesday.

China's second-biggest airline by fleet size after China Southern Airlines Co. aims to raise the proportion of its total revenue from international services to 50% in two years, from an expected 35% at the end of 2010, Luo said in an interview.

He said the airline is considering new routes, as well as increased frequencies, on both regional and long-haul services, but declined to elaborate. International routes are typically more profitable for Chinese airlines than domestic services, which face strong price competition as well as government controls on some fares.

"We are in an unprecedented period of expansion for the Chinese aviation industry, with the growth rate better than we originally expected," said Luo, adding he expects the current strength in the air-travel market to last at least until the first half of 2012.

Luo said the airline is benefiting from improving yields -- a key measure of an airline's profitability -- thanks in part to the Chinese government's earlier decision to liberalize first- and business-class ticket prices, as well as tight capacity as some airlines had cut back aircraft orders and delayed deliveries during the global economic downturn.

It is also one of the beneficiaries of the Shanghai World Expo, which is bringing thousands of domestic and international visitors to China Eastern's doorstep. The airline carried 42.9 million passengers in the January-August period, 47% more than in the same period last year.

China Eastern has made a strong comeback after suffering from high operating costs coupled with the impact of the global financial crisis, which hit global export volumes and air passenger travel demand.

The airline reported a record net loss of CNY15.27 billion in 2008, due in part to bad bets on fuel-price hedging as fuel prices plummeted. At one point, the airline had negative equity -- debt exceeding assets -- exceeding CNY10 billion in 2009. By comparison, the airline's total debt-to-asset ratio is now around 89%, said Luo.

The Chinese government injected CNY9 billion into China Eastern's parent and installed a new management team at the state-run carrier to help turn it around, with former China Southern Airlines Co. Chairman Liu Shaoyong named chairman in late 2008.

Under Liu's management, China Eastern has made a number of cost-cutting measures, including deferral of aircraft deliveries. Its Hong Kong-traded shares have risen nearly four-fold since the start of 2009, outperforming the 51% rise in the city's benchmark index.

China Eastern also completed its acquisition of smaller rival Shanghai Airlines Co. earlier this year for US$1.3 billion, a deal that could help bring annual cost savings of CNY400 million-CNY500 million, Luo said.

However, analysts said the merger won't eliminate shared weaknesses, including brand reputation, weak competitiveness and network coverage on international routes, and overstaffing.

As such, Luo said China Eastern remains open to strategic investors. "We would like to have strategic investors that can bring expertise in operating international flights, enhance our products and sales network."

Singapore Airlines Ltd. (SINGY) and its parent company aborted a plan to buy a minority stake in China Eastern in 2008 after the deal was rejected by the Shanghai carrier's independent shareholders.

Luo declined to comment on whether the airline is still in talks with Singapore Airlines.

He said the airline's plan to join the SkyTeam Alliance won't affect any strategic talks with carriers in other alliance groupings. Singapore Airlines is part of the Star Alliance, for example.

China Eastern said earlier it plans to become a full SkyTeam member by mid-2011, joining China Southern as the second Chinese airline in the alliance. Luo said Shanghai Airlines will also join the group after it withdrew from its Star membership in October.

China Eastern operates around 338 aircraft, and plans to take delivery of 45 new planes between the second half of this year and the end of 2011.
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Old September 19th, 2010, 05:47 PM   #782
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China Southern further explores Australian aviation market

BEIJING, Sept.19 (Xinhua) -- China's largest airline firm by fleet size China Southern Airlines will open a direct flight route from Guangzhou to Brisbane in November.

China Southern will also add flights on routes to Sidney and Melbourne, in an effort to further explore the aviation market of Australia.

Chinese tourists traveling to Australia have witnessed growth for years. In the first five months of this year, Australia received 204,000 Chinese tourists, up 10 percent from the same period of last year. China has become Austria's fourth largest source of tourists as of the end of 2009.

China Southern has been busily engaged in constructing international flight networks in recent years. It aims to develop Guangzhou as a transfer hub from China to Oceania for Chinese travelers.
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Old September 28th, 2010, 04:05 AM   #783
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Flights between Gimpo, Beijing expected by year-end
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SEOUL, Sept. 27 (PNA/YONHAP) -- Regular shuttle flights connecting Seoul's Gimpo Airport and Beijing's Capital International Airport may be established by the end of this year, a government source said Monday.

The government is negotiating with South Korean and Chinese airlines on details to begin regular flight services that can reduce travel time between the two capital cities, the source at the Ministry of Land, Transport and Maritime Affairs said At present, travelers must go to Incheon International Airport, about 52 kilometers west of Seoul, if they want to fly to the Chinese capital. Gimpo is located in the southwestern tip of Seoul and much more accessible compared to Incheon airport.

"Starting regular flights from Gimpo is expected to require reducing the number of flights linking Incheon with Beijing," the official said.

Korean Air, South Korea's largest flag carrier, currently operates 18 flights per week connecting Incheon and Bejing, and Asiana, the country's second major airline, maintains 24 flights.

Gimpo already provides regular shuttle flights to Tokyo's Haneda Airport, which is also closer to downtown Tokyo than Narita International Airport.
http://www.pna.gov.ph/index.php?idn=...d=6&rid=303102
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Old October 2nd, 2010, 12:38 PM   #784
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China Southern unit buys 10 Boeing planes for $699 mln
30 September 2010

HONG KONG, Sept 30 (Reuters) - China Southern Airlines said on Thursday that its 60-percent-owned unit Xiamen Airlines has agreed to buy 10 Boeing aircraft for about $699 million.

The acquisition would be funded partly by the internal resources of Xiamen Airlines and partly through loans by commercial banks, China Southern said in a statement to the Hong Kong stock exchange.
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Old October 4th, 2010, 06:54 PM   #785
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By dennis1182 from HKADB :

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Old October 5th, 2010, 04:11 PM   #786
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American Airlines seeks permission to operate flights between Los Angeles, Shanghai
2 October 2010

DALLAS (AP) - American Airlines is seeking government approval to operate flights between Los Angeles and Shanghai beginning next year.

The airline said Friday it applied to the U.S. Department of Transportation for authority to launch nonstop service April 5.

American says they would be the only nonstop L.A.-Shanghai flights operated by a U.S. airline. They would run between Los Angeles International Airport and Pudong International Airport.

AMR Corp.'s American Airlines currently flies from Chicago to Shanghai and Beijing.

The airline plans to use 247-seat Boeing 777 aircraft on the flights to and from Los Angeles. The planes have 16 first-class seats, 37 in business class and 194 in coach.
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Old October 11th, 2010, 04:37 PM   #787
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China airline doubles its flights to Australia
12 October 2010
The Australian

ASIA'S biggest airline is more than doubling its capacity to Australia within the next month as it seeks to capitalise on growing tourism links with China.

China Southern will this month increase from 10 flights a week over Sydney and Melbourne to 24 to Sydney, Melbourne and Brisbane.

The new schedule includes moves at the end of October to double the daily Sydney-Guangzhou flights and the daily Melbourne-Guangzhou flights, as well as a new three-times-a-week service to Brisbane, due to start on November 2.

The airline briefly flew to Brisbane in the late 1990s but cancelled the service when the Asian economic crisis hit.

The new services, using a mix of Airbus A330-300 and A330-200 aircraft, boost the presence of the SkyTeam aviation alliance in Australia.

SkyTeam, whose members servicing Australia include Korean Airlines and Delta Air Lines, is a rival to the oneworld and Star Alliance groupings that have traditionally dominated the market here.

The capacity increase comes after China Southern struck a strategic business development and marketing deal with Tourism Australia and will focus on developing outbound as well as inbound markets.

China Southern spokesman Bill Bryant said the airline was increasing staff in Australia to cope with the expansion.

Sydney and Melbourne airports last month identified China as a major driver of international traffic growth.

Melbourne reported a 58 per cent increase in Chinese passport-holders compared with August last year, and Sydney figures are up 52 per cent.

In Melbourne, the number of Chinese passengers outstripped visitors from Britain for the first time, and the airport managers said they were preparing for further growth as Chinese carriers boost capacity.

Sydney remains the biggest destination for Chinese visitors, but Melbourne now has a higher growth rate for Chinese passengers, and sees China and India as major future markets.

However, doubt remains about the future of promised Air India flights to Melbourne after the Indian government stepped in on a deal to fly services to the Victorian capital.

Indian media reports said the plan was shot down by an independent director, who told the Civil Aviation Ministry the route would not be economically viable and would add to the losses of the cash-strapped airline.
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Old October 14th, 2010, 04:14 PM   #788
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Old October 15th, 2010, 06:18 PM   #789
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@ PVG
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Old October 21st, 2010, 08:09 AM   #790
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Old October 22nd, 2010, 05:55 PM   #791
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Old October 22nd, 2010, 06:58 PM   #792
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China Raises Bar for New Airlines
21 October 2010

BEIJING, October 21, SinoCast -- General Administration of Civil Aviation of China (CAAC) continues to refuse to approve more new airlines and said no new carriers will be cleared this year without meeting strict conditions.

The regulator said new airlines will be approved this year only if they meet one or more of several guidelines: "Be based in west China or northeast China or operate a domestic produced fleet or be a cargo carrier." The policy has been in place since 2007. CAAC said the guidelines are rooted in concerns about pilot shortages, lack of available slots at airports and the past failure of a number of startup private airlines in China.

Approval for airlines to set up new units has also been tightened as CAAC moves to beef up the industry's efficiency and safety, while stressing that it will treat cargo and regional units exceptionally.

CAAC has released a new set of rules entitled "Opinion on the Management of Establishment of Branches by Airlines", outlining, among others, how airlines dealing with freight can set up a new branch, in a bid to prevent rapid overheating and expansion of the country's airline companies

The bar for new branch and subsidiary approval has been lifted higher: an airline company that wants to set up a subsidiary must have a fleet of over 50 airlines with more than 10 years of operational history; and it will be allowed to set up another subsidiary with an increase of 20 planes more; if an airline company hopes to establish a branch, it has to have a fleet of 20 airplanes.

China's air-travel industry has, indeed, lived up to the hype. Passenger numbers have nearly doubled since 2004, to half a billion a year. Thirty new airports have been built and the government has plans for nearly 100 more over the next 10 years. But while the country's three state-owned air giants, Air China, China Southern and China Eastern, are soaring, their private rivals have been left bruised, broken or bankrupt. Of the 14 private airlines established since 2004, only four are still in business. Some never got off the ground, while others have gone bust or been acquired by more powerful state-owned rivals.

Carriers approved by the regulator since 2007 include Xi'an-based Joy Air, a regional carrier based in west China that operates a domestic produced fleet; cargo carriers Youhe Tongdao Airlines and Shunfeng Airlines; and Tibet Air, a startup based in the west China city of Lhasa.

CAAC Transport Department Director Wang Ronghua noted that currently approximately 10 prospective airlines are waiting for the regulator's approval. "But we don't encourage the launching of too many carriers as it would trigger problems owing to limited resources," he said. "Thus, we would decide whether to approve these new carriers by taking various factors and safety into account."
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Old October 27th, 2010, 04:57 PM   #793
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China's Airports by 2020

Green = operational by 2006
Red = Start U/C by 2011 (?)
Blue = Completed by 2020

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Old October 27th, 2010, 05:17 PM   #794
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China cuts domestic aviation fuel prices

The Chinese government cut the country's domestic aviation fuel prices by 2.1%, from CNY5,610 ($841) per ton to CNY5,490 as of Oct. 1, according to China Aviation Oil Corp.

Fuel expenses account for more than 40% of domestic carriers' total operating costs on average. China Southern, which operates 80% of its flights on domestic routes, could see its fuel costs reduced by CNY317 million annually owing to the change. Air China and China Eastern Airlines, which operate 70% of their flights on domestic routes, could reduce their annual fuel costs by CNY269 million and CNY277 million, respectively.
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Old November 2nd, 2010, 12:44 PM   #795
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By Xuz from HKADB :

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Old November 3rd, 2010, 09:06 PM   #796
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Direct flight route between China and Libya launched

BEIJING, Nov. 3 (Xinhua) -- An Afriqiyah Airways plane landed in Beijing at 3:08 a.m. Wednesday, marking the launch of the direct flight route between China and Libya.

The Libya-based airline started the twice-a-week service to meet the rising travel demand from Chinese business people and laborers seeking to work abroad.

The flight time is around 12 hours.

Analysts said the launch of the new international route highlighted Afriqiyah Airway's confidence in China's booming air traffic market.

Established in April, 2001, the airline operates domestic services between Tripoli and Benghazi and international services to more than 25 countries in Europe, Africa, Asia and the Middle East.
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Old November 4th, 2010, 12:47 PM   #797
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Direct flights are only a matter of time
4 November 2010
The Cairns Post

A MAJOR Chinese airline has given its strongest indication yet it will begin regular direct flights to Cairns, opening the door to one of the world's most lucrative markets.

China Southern Airlines yesterday met a delegation of Cairns business leaders at a private meeting in Brisbane and confirmed the Far North was in its plans for expansion.

Tourism Tropical North Queensland chairman Bill Calderwood said the group was buoyed by the prospect of direct links with the Chinese travel and business market.

Direct flights from China 'a matter of time'

The group, including Mayor Val Schier, Cairns Airport chief executive officer Stephen Gregg and TTNQ chief executive officer Rob Giason, was buoyed by the prospect of establishing direct links with the rich Chinese travel and business market.

"Cairns is certainly on the radar. They do intend to come here," Mr Calderwood said.

He said the delegation took the opportunity to meet China Southern Airline's president Tan Wangeng while at a Queensland Tourism Industry Council event in Brisbane to welcome the arrival of the airline's flights from Guangzhou to Brisbane.

"Cairns is definitely in their future plans," Mr Calderwood said.

He said the airline had yet to make a firm commitment or provide a time frame.

Mr Calderwood said China Southern planned to expand throughout Australia and Cairns was one of thedestinations.

But in the short term, it was keen to make sure the first direct flights into the state to Brisbane were successful, he said.

"They want to expand as quickly as possible. Their ambition is to increase capacity and start new routes."

Mr Calderwood said the meeting was a good opportunity for the delegation to "reinforce" the destination's desire to introduce direct flights and bring Chinese travellers straight to Cairns.

He said all parties would continue to work closely to bring the direct flights to fruition as soon as possible.

Mr Giason said the direct flights to Brisbane would make access to Cairns easier for Chinese visitors.

"China Southern has been a supporter of the Cairns charter flight program for the Chinese New Year," he said.

"The first scheduled flights from China into a Queensland port is a significant advance in developing the China market for tourism to our state."

Last night, the group was also dining with Mr Wangeng and senior airlineexecutives.

Mr Giason said the dinner provided "further relationship building".

WHAT THE CHINESE LIKE ABOUT THE FAR NORTH

A survey by James Cook University earlierthis year found Chinese tourists wereattracted to Cairns primarily because of the Great Barrier Reef.

Chinese visitors also chose to holiday herefor relaxation and enjoyment, visiting afamous natural environment, and seeing unusual animals and wildlife.

The environment and scenery was regarded as the most appealing aspect of their holiday, followed by people, environmental protection awareness, flora and fauna and lifestyle.
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Old November 4th, 2010, 08:31 PM   #798
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Old November 8th, 2010, 05:13 PM   #799
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Old November 9th, 2010, 05:02 PM   #800
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Rolls-Royce Wins $1.2 B Order From China Eastern Air And Agrees Environmental Partnership
9 November 2010

LONDON (Dow Jones)--Rolls-Royce Group PLC (RR.LN), the global power systems company, said Tuesday it has won an order worth $1.2 billion, at list prices, from China Eastern Airlines for Trent 700 engines to power 16 Airbus A330 aircraft.

MAIN FACTS:

-Order includes a TotalCare long-term service agreement.

-Rolls-Royce and China Eastern Airlines have also formed a Carbon Partnership, which aims to reduce CO2 emissions by 190,000 tons in its first year.

-Partnership will see Rolls-Royce provide a fuel management service for the airline's fleet of more than 300 aircraft.

-Rolls-Royce will also supply enhanced performance kits to upgrade the Trent 700 engines on China Eastern Airlines' 20 existing A330s.

-Shares at 0945 GMT up 11.5 pence, or 1.9%, at 618.5 pence valuing the company at GBP11.58 billion.
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