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Old November 29th, 2010, 02:37 PM   #821
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Old November 29th, 2010, 07:34 PM   #822
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Prices of flights to China down 40% since October
29 November 2010
Nikkei Weekly

December flight tickets to big Chinese cities leaving from Narita International Airport are about 40% cheaper than such tickets were in October, due apparently to an attempt to shore up falling sales amid the strained ties between Japan and China.

Return tickets for flights between Narita and Shanghai for early December are selling for as low as around 23,000 yen, 19,000 yen less than the tickets for departure in mid-October. The prices of flights between Narita and Beijing are down 12,000 yen to about 23,000 yen.

Tickets for flights between Beijing and Kansai International Airport serving the Osaka area are selling for around 33,000 yen - a drop of more than 10%, or 4,000 yen.

As of mid-October, JAL saw the number of flight cancellations top 3,600. ANA expects the number of customers for flights to China in November to decline about 7% on the year.

Rival Chinese airlines are making similar moves to lure Japanese customers.

"Chinese airlines are slashing their prices to attract Japanese tourists," said an official at Airplus Co., a flight ticket sales company based in Tokyo.

One foreign airline company predicts that Chinese carriers may sell return tickets at the 10,000 yen level. U.S. airlines have also pushed down their prices to lure customers as they hope to grab more share of the market.
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Old November 29th, 2010, 07:45 PM   #823
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China Southern Airlines orders 20 C919 aircraft

BEIJING, Nov. 29 (Xinhua) -- China's largest airline firm by fleet size China Southern Airlines (ZNH.NYSE; 01055.HK; 600029.SH) had ordered 20 of C919 aircraft manufactured by Chinese aircraft maker, the Commercial Aircraft Corp. of China, (COMAC), reported Investor China.

China Southern Airlines has ordered six A330s and 30 A320s from Airbus for 3.78 billion US dollars and 10 Boeing 737s from Boeing for 699 million US dollars in October and November.

China Southern Airlines carried 7.05 million passengers in October, a rise of 15.1 percent year on year.

Its passenger load factor was 82.2 percent for the month, up 3.9 percentage points from the same period of last year.

The airline has recorded a 15.3 percent year-on-year increase in available seat kilometers (ASK) as of end October 2010, of which the ASK of international routes rose 27 percent year-on-year.

China Southern Airlines recorded a 15-fold surge in net profit to 5.12 billion yuan in the first three quarters of 2010.

China Southern Airlines shares were up 0.43 percent to end at 9.29 yuan in Shanghai on Monday while its Hong Kong-listed shares added 2.02 percent to finish at 5.56 HK dollars.
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Old November 29th, 2010, 07:49 PM   #824
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Do you have a list of airlines which have ordered the C919 aircraft?
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Old November 29th, 2010, 07:51 PM   #825
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Do you have a list of airlines which have ordered the C919 aircraft?
Comac chalks up first single-aisle orders
23 November 2010
Flight International

Comac has made a breakthrough in China's attempt to enter the narrowbody market after announcing a launch order of up to 100 aircraft for its C919.

Chinese carriers Air China, China Southern Airlines, China Eastern Airlines, Hainan Airlines, together with lessors CDB Leasing and GE Aviation's leasing arm GECAS came together for a joint signing ceremony at Airshow China 2010 in Zhuhai.

Half of the 100 orders are firm, while the remaining are options, says Comac general manager Jin Zhuanglong. Air China, China Southern and China Eastern have ordered up to 20 C919s each, he adds. GECAS says it has ordered up to 10 aircraft, half of which are firm orders. Jin did not give a detailed breakdown for the remaining orders.

The involvement of GECAS was not a surprise. CFM International, GE's engine joint venture with Snecma, will launch its Leap-X1C powerplant on the aircraft.

"We are pleased to announce our C919 letter of intent today. We look forward to a long association with the Comac team as it continues to build China's commercial aviation industry," says GECAS chief executive Norman CT Liu.

"It is Comac's vision to provide customers with civil aircraft that are safer, more economic, more comfortable and more environmental friendly," says Comac chairman Zhang Qingwei. The orders, he adds, are a vote of confidence in the C919.

The announcement, however, does not appear to faze Airbus and Boeing. The C919 is pitched directly against their A320 and 737 families and is scheduled to enter service before either company comes up with a new generation successor.

But one Boeing official dismissed the C919 as still a "paper plane" that may not be competitive when it enters service. Executives from both companies say that their products will remain in demand in China in the foreseeable future.

The four Chinese airlines that ordered the C919 also operate either the A320 or 737, or both, and some have a backlog of orders for the Western alternatives.

The joint definition phase for the C919 is ongoing and scheduled to wrap up early in 2011, after a design review at the end of this year. Comac aims to complete its detailed design work in 2012, have the first flight in 2014, and is eyeing an entry into service in 2016. The company has not said who will launch the aircraft .
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Old November 29th, 2010, 07:54 PM   #826
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Thanks!! Do you think any airlines not from China will order it??
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Old November 29th, 2010, 07:55 PM   #827
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Quote:
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Thanks!! Do you think any airlines not from China will order it??
I don't think that market segment matters so much yet since mainland-based carriers can fuel plenty of orders to keep the firm busy.

It'll take time for them to expand internationally. It's still really Airbus, Boeing, and Embraer's world out there.
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Old November 29th, 2010, 07:58 PM   #828
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Quote:
Originally Posted by hkskyline View Post
I don't think that market segment matters so much yet since mainland-based carriers can fuel plenty of orders to keep the firm busy.

It'll take time for them to expand internationally. It's still really Airbus, Boeing, and Embraer's world out there.
Thats true!! Maybe when the planes are delivered more international airlines will order them.
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Old November 29th, 2010, 08:00 PM   #829
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Quote:
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Thats true!! Maybe when the planes are delivered more international airlines will order them.
It takes a long time for airlines to feel comfortable with new models. We saw the delayed rollout of the A380 and problems with the recent 787 test flight. I suspect airlines are not so willing to be guinea pigs anymore.

But then, the central government would want to grow the aerospace industry locally, so the C919 should have plenty of local customers.
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Old November 29th, 2010, 08:01 PM   #830
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Flights rescheduled after heavy fog causing chaos at Xinjiang airport
28 November 2010

URUMQI, Nov. 28 (Xinhua) -- Flights are being rescheduled Sunday after heavy fog caused chaos at an airport in northwest China's Xinjiang Uygur Autonomous Region, airport officials said.

The fog began to impair operations at the Urumqi International Airport in this capital city of Xinjiang at about 5 p.m. Saturday, cutting visibility to only 50 meters.

Almost 320 domestic and international flights had been canceled or delayed by Sunday noon, leaving nearly 10,000 passengers stranded at the airport.

The airport administration rescheduled some 126 delayed flights to take off beginning at 4 p.m. Sunday after the fog lifted, with the final group of passengers expected to leave by midnight.

Fog is expected to continue in the northern parts of Xinjiang Monday and snow is forecasted in the region, reducing temperatures by up to 8 degrees, according to the latest weather reports.
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Old November 29th, 2010, 08:02 PM   #831
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Building an Air Friendship Bridge for People Between China and Canada
Hainan Airlines holds inauguration ceremony for Beijing-Toronto flight

BEIJING, Nov. 27, 2010 /PRNewswire-Asia/ -- The inauguration ceremony for Hainan Airlines' Beijing-Toronto flight was held at Toronto Pearson International Airport after the inaugural flight landed at the airport safely at 13:40 PM, November 27 (Toronto local time). Over 150 guests were present at the ceremony, including Hazel McCallion, Mayor of Mississauga, Greater Toronto Area; Lloyd McCoomb, President and Chief Executive Officer of the Greater Toronto Airports Authority; Chen Ligang, Consul General of China in Toronto; Hainan Airlines President Wang Yingming and Vice President Chen Ming, as well as local journalists. Canadian Prime Minister Stephen Harper congratulated Hainan Airlines on launching its inaugural flight to Toronto in a special congratulation letter.

Greetings from the Prime Minister, Stephen Harper, said: The new flight route is a fitting celebration of the 40th anniversary of diplomatic relations between Canada and China. As this new service attests, the relationship between our two dynamic nations is flourishing, with more trade, people-to-people links, and greater cooperation than ever before.

Hazel McCallion congratulated Hainan Airlines’ non-stop service between Toronto and Beijing in her address. She said that this new route will definitely facilitate the economic development in Mississauga as well as in the Greater Toronto Area, and will attach great significance to the bilateral relations between China and Canada.

Hainan Airlines President, Wang Yingming, said in his address that the Beijing-Toronto service builds a convenient and comfortable air friendship bridge for people between China and Canada, which will facilitate communications and cooperation in various aspects between the two countries. The airline will try its best to do well in the flight's operation security effort with the service concept "convenient, warm and constantly improving," to appreciate passengers' anxious expectation about and best wishes for the service, bringing more benefits to the two countries' people.

Then, guests attending the ceremony cut the ribbon for the flight's debut. Lloyd McCoomb, President and Chief Executive Officer of the Greater Toronto Airports Authority, exchanged gifts with Hainan Airlines President Wang Yingming.

The inaugural return flight HU7976 successfully departed from Toronto Pearson International Airport at 16:10 pm. The flight's operation demonstrates that Hainan Airlines has become the first airline in mainland China operating the Beijing-Toronto service.

The aircraft running on this route is the Airbus A340 wide-body luxury airliner. The new route will have three flights per week, which are on Monday, Wednesday and Saturday, departing from Toronto at 16:10 local time and arriving in Beijing at 19:25 the next day local time. The return flight departs from Beijing at 13:00 local time and arrives in Toronto at 13:40 local time. The travel time will be around 13 hours. In addition to the Airbus A340 luxury airliner, Hainan Airlines is offering attractive promotion prices to celebrate the launch of the new service. The price for economy-class round-trip from Toronto is CAD 499; business-class one-way CAD 3,000; and business-class round-trip CAD 3,600. The price for economy-class round-trip from Beijing is RMB 4,800; business-class one-way RMB 19,800; and business-class round-trip RMB 35,000. In addition, the airline offers a variety of promotions during holidays such as Christmas and New Year's Day, to provide diversified services for passengers.

As China's first SKYTRAX four-star airline, Hainan Airlines provides seamless air-land services for passengers. First-class passengers will enjoy not only personal check-in guide and VIP treatment at the airport, but also 180-degree lie-flat seat, 10.6-inch touch-control LCD personal entertainment system and various catering services including steak, western snacks and lunch by the very best chefs on board, all of which allow passengers from both China and Canada to experience Hainan Airlines' unique hospitality.

"Hainan Airlines' Beijing-Toronto service is the first flight route operated by an airline in mainland China after the country approved Canada as a destination for leisure travel. In addition, it is also the carrier's second international route launched to the North America, following its Beijing-Seattle flight, and represents an important step in building our international route network. We believe that this new service will not only bring a new air corridor between the two international metropolises -- Beijing and Toronto, but also provide a new travel choice for Chinese and Canadian passengers," said Wang Yingming, President of Hainan Airlines in an interview.

With 22 existing international routes, Hainan Airlines has built an international route network worldwide consisting of short- and medium-haul flights to Japan, South Korea, Russia and Central Asia, and long-haul flights to Europe, the Americas, Africa and Australia.
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Old December 1st, 2010, 04:55 PM   #832
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China Southern targets 30pct of routes to be international in three years

BEIJING, Dec. 1 (Xinhua) -- China's largest airline firm by fleet-size China Southern Airlines aims to raise the proportion of international routes from the current 15 percent to 30 percent in three years, Hong Kong media reported.

Of China's three largest airlines, namely China Southern, Air China (00753.HK; 601111.SH), and China Eastern Airlines (CEA.NYSE; 00670.HK; 600115.SH), China Southern boasts largest fleet size and highest passenger transport volume. It currently owns more than 400 aircraft and transported 66.28 million passengers in 2009.

However, China Southern's international flight routes only account for 13 percent of all its flight routes, leaving it lagging behind Air China and China Eastern, which have 34 percent and 26 percent respectively.

The high proportion of domestic flight business has affected the profitability of China Southern, as ticket prices are lower with shorter distances and maintenance costs are higher with more frequent take-offs and landings.

China Southern plans to bring in a total of eight Airbus A380 airplanes and Boeing 787 airplanes in the next year, which will all be put on flight routes to Europe, the US and Southeast Asian countries.
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Old December 15th, 2010, 10:03 AM   #833
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High-speed rail no threat to China airlines - regulator
7 December 2010

BEIJING, Dec 7 (Reuters) - China's expanding high-speed railway network does not pose a major threat to its airlines, the country's top aviation regulator said on Tuesday.

While acknowledging cost pressures on the carriers from some routes, Civil Aviation Administration of China head Li Jiaxiang said railways could also help boost air travel in remote landlocked regions.

"Railways and airlines are competitors, but they can also compliment each other," Li told Reuters on the sidelines of an industry event in Beijing.

"Since the Beijing-Tibet railway started operations, air passengers in and out of the capital Lhasa have risen 38 percent," Li said, citing official statistics.

China plans to build 13,000 km (8,078 miles) of high-speed railway by 2012, more than the rest of the world combined.

According to the government's blueprint, by 2020 the network will have expanded to serve more than 90 percent of the population, with a budgeted cost of 2 trillion yuan ($295 billion), and including 16,000 km of the fastest newly built lines.

Robust leisure and business travel is also bolstering the top lines of Air China Ltd , China Eastern Airlines Corp Ltd and China Southern Airlines Co Ltd to record highs.

Li, an ex-chairman of Air China, has previously proposed the creation of a national "super carrier" to compete more effectively with foreign rivals.

Asked whether he was still a proponent of a large carrier in his capacity as an industry regulator, Li said: "It's a trend globally; we should be aware of such trends."
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Old December 15th, 2010, 11:46 AM   #834
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Bumpy flight to recovery for airlines
6 December 2010
Shanghai Daily

China's airline industry is expected to continue the recovery that started last year amid rising demand for seats and cargo space, and expectations of an appreciating yuan, analysts said.

But they see headwinds on the horizon as air travel faces increasing competition from new bullet train services across China.

Domestic carriers handled a combined 230.5 million passengers in 2009, up 19.7 percent from a year earlier, the Civil Aviation Administration of China said. Cargo handling rose 9.3 percent to 4.45 million tons.

The 2009 performance was a big improvement from 2008, when passenger volume edged up only 3.3 percent and cargo growth was almost flat with a 0.3 percent gain.

"Air demand is expected to grow 13 percent to 15 percent this year, with airlines expected to add between 10 percent and 12 percent capacity," said Tao Wei, an airline analyst at China International Capital Co Ltd. "That will improve load factors and ticket prices for domestic carriers.

"In addition to that," she added, "as a recovery in exports increases the possibility of an appreciation of the yuan in March and April, the performance of airlines will be further boosted by exchange gains."

The appreciation of the yuan will cut the repatriated value of US dollar-denominated debts for the airlines. For every 1 percent rise in the value of the yuan, earnings per share increase 0.04 yuan (0.59 US cent) at China Southern Airlines, 0.3 yuan at China Eastern Airlines and 0.02 yuan at Air China, according to Tao.

China's aviation industry flew back into the black last year with aggregate net profit of 12.2 billion yuan on hefty fuel-hedging gains after the oil price more than doubled. That followed a record 28 billion yuan loss in 2008.

"The oil price isn't likely to grow significantly this year, and new mechanisms linking the jet fuel price with fuel surcharges will partly offset any climbing fuel costs for domestic carriers," Tao said.

Although the industry's prospects are looking up, it's not all blue skies ahead for the industry. One of its more serious challenges lurks on the ground below.

The government said it plans to build 42 high-speed rail lines spanning 13,000 kilometers over the next three years. As bullet trains become more numerous, it may be harder for the airlines to get bums on seats.

A high-speed railway linking Guangzhou in southern China with Wuhan in the middle of the country started running in December, paring the trip to three hours from 10-and-a-half hours previously. That compares with a 90-minute air flight, excluding the time it takes to get to the airport, check in and wait at the gate.

The one-way fare by bullet train from Wuhan to Guangzhou ranges from 490 yuan to 780 yuan. Domestic carriers on that route have been forced to reduce ticket prices by as much as 80 percent to compete.

Guangzhou-based China Southern even increased flight frequencies linking the two destinations to try to forestall a loss of air passengers.

"Big cities such as Beijing, Shanghai and Guangzhou are key hubs in the high-speed railway network as well as key markets in the aviation industry," said Zou Jianjun, a professor at Civil Aviation Management Institute of China.

"Frequent flights may help airlines hold on to passengers in the short run, but the strategy won't work in the long run due to its weak profitability, so the high-speed railways will push the airlines to restructure further in the future," he said.

China Southern also plans to begin talks with railway authorities in March about possible cooperative ventures to make connections between air and rail transit more seamless, encouraging rail passengers to consider flights for part of their trips.

Macquarie Equities Research said it expects high-speed rail to become more of a diversionary factor for Chinese airlines beginning in 2012 or 2013, once the new networks are completed.

"China Southern has the largest exposure on its routes between hub and focus cities, but we think its proactive approach in seeking to cooperate with high-speed rail provides a long-term solution for mitigating the risk of intermodal substitution," the research company said.

Mergers and acquisitions will also shape the domestic airline industry this year. Shanghai-based China Eastern is expected to complete its takeover of Shanghai Airlines next month, increasing its market share in China's commercial center to more than 50 percent.

China Southern and rival Air China are circling Shenzhen Airlines as a possible takeover target, with an eye toward increasing their presence in the south of the country, according to sources.

China Southern fueled takeover speculation last month when it signed a cooperative agreement with the Shenzhen municipal government as part of efforts to raise its share of the Shenzhen aviation market to 50 percent from 30 percent in the next five years.

Although there was no mention of a stake in Shenzhen Air, media reports said China Southern has already talked to Beijing authorities about a possible purchase. Its director refused to comment.

Air China, which already owns 25 percent of Shenzhen Air, is also a player. The Beijing-based carrier took over management of Shenzhen Air after the carrier's former boss and majority stakeholder, Li Zeyuan, was arrested in November for economic crimes.

Privately owned regional airlines in China are facing nationalization in the aftermath of the global financial crisis. Chengdu Airlines, reorganized from China's first private carrier, United Eagle Airlines, started operation this month.

United Eagle Airlines, founded in 2004, suffered a cash crunch when the economic crisis slashed travel demand. It was acquired by state-owned Commercial Aircraft Corp of China, Sichuan Airlines and Chengdu Communications Investment Group last year.
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Old December 15th, 2010, 03:08 PM   #835
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Old December 16th, 2010, 09:25 AM   #836
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China Southern passenger volume up 3.7 pct y-o-y in November
15 December 2010

BEIJING, Dec. 15 (Xinhua) China's largest airline firm by fleet size China Southern Airlines (ZNH.NYSE; 01055.HK; 600029.SH) transported 5.84 million passengers in November, registering a rise of 3.7 percent year on year.

The company announced Wednesday that its passenger load factor marked at 76.5 percent in the month, down 1.0 percentage points from the same period of last year.

It carried 98,110 metric tons (tonnes) of cargo and mails in November, up 15.8 percent year on year.

Its available tonnes kilometer registered a year-on-year rise of 22.2 percent to 1.61 billion in the month and its available seat kilometers were 8.3 percent higher year-on-year to 11.27 billion.

The revenue passenger-kilometer for China Southern posted a year-on-year rise of 6.9 percent in November, to 8.63 billion.

The operating figures of China Southern in November, a traditional low season for aviation transport, are generally satisfactory, analysts here say. But the airline firm needs to further make efforts in improving its load factor.
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Old December 20th, 2010, 05:41 PM   #837
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Air France-KLM Launches Service To Xiamen Airport In China
20 December 2010

AMSTERDAM (Dow Jones)--Air France-KLM (AF.FR) said Monday its KLM Royal Dutch Airlines unit will begin operating a scheduled service to Xiamen International Airport in China on 27 March 2011.

MAIN FACTS:

- KLM is the first airline to offer direct flights between Xiamen and Europe.

- Xiamen is the second-largest city in the province of Fujian and has a population of 3 million inhabitants.

- The new service will be operated three times a week.

- KLM's SkyTeam partner China Southern Airlines offers connecting flights to and from Xiamen from a host of destinations in China.
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Old December 20th, 2010, 08:02 PM   #838
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China Southern: Hebei Investment To Take 15% Stake In Xiamen Airlines
20 December 2010

HONG KONG (Dow Jones)--China Southern Airlines Co. (1055.HK) said Monday Hebei Aviation Investment Group Co. agreed to buy a 15% stake in Xiamen Airlines Co. for CNY1.46 billion (US$219 million) to strengthen the regional carrier's capital base and reduce its debt.

The Guangzhou-based carrier said in a statement its stake in Xiamen Airlines will fall to 51% from 60% after the deal, while Xiamen Jianfa Group Co.'s stake will fall to 34% from 40%.
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Old December 20th, 2010, 09:07 PM   #839
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China Southern also plans to begin talks with railway authorities in March about possible cooperative ventures to make connections between air and rail transit more seamless, encouraging rail passengers to consider flights for part of their trips.
How good are connections between New Baiyun airport and Guangzhou North railway station now?
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Old December 22nd, 2010, 04:39 PM   #840
hkskyline
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air china, aviation, china, china southern, east asian airlines, guangzhou, hainan airlines, skyteam, star alliance

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