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Old March 26th, 2014, 01:10 PM   #1601
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China Southern Airlines to open Guangzhou-Frankfurt route in June

BEIJING, Mar. 25 (Xinhua) – China Southern Airlines (ZNH.NYSE; 01055.HK; 600029.SH), China's largest airline by fleet size, will begin operating regular flights on a route between Guangzhou in south China's Guangdong Province and Frankfurt, Germany, on June 20.

The route will have a stopover at Changsha, capital city of central China's Hunan Province.

An Airbus A330-200 aircraft will serve the route.

After the new route is put into service, Frankfurt will become the sixth European destination covered by the airline's network.

China Southern Airlines is already operating regular flights on routes linking the Chinese mainland with European cities including Paris, Amsterdam, London, Moscow and Istanbul.
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Old March 26th, 2014, 02:41 PM   #1602
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Old March 27th, 2014, 04:05 PM   #1603
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Air China's net profit declines
27 March 2014
China Daily

Air China Ltd, the flag carrier of China, saw a 32.41 percent year-on-year reduction in its net profit in 2013, and this year may be tougher for Chinese carriers, analysts forecast.

Air China earned 3.3 billion yuan ($535 million) net profit and operation revenue of 97.63 billion yuan - a 2.22 percent decline - in 2013, according to the carrier's annual report released on Wednesday.

It is the third consecutive year that the carrier has reported reduced profits. The decline was attributed to China's slowed economic growth, the global economic recession and a weak cargo market.

Air China's passenger yield decreased by 10.39 percent to 0.62 yuan in 2013, which directly led to the profit decline, although both passenger numbers and load volume increased slightly in 2013.

Chen Xin, an analyst with UBS Securities LLC, estimated the airline's ticket price dropped about 8 percent in 2013 from the previous year.

In addition, because of anti-corruption regulations released by the central government, high-end demand for air traffic decreased in 2013.

Air China said in its report that the sales of its business and first-class seats increased only 7 percent in 2013 from 2012, but the rise had been over 10 percent in past years, analysts said.

"Other Chinese carriers also met the same problem as Air China, and their business will not be any better than Air China's," said Li Lei, a civil aviation analyst with China Minzu Securities Co.

In contrast to State-owned airlines, Hainan Airlines Co Ltd, the fourth-largest carrier in China, saw a 9.2 percent profit rise in 2013, despite the industry being gloomy.

"The passenger structure of Hainan Airlines is different from others in that it operates many routes to tourist destinations," Li said.

Networks covering smaller cities, rather than big cities, also provided faster growth for the airline, he added.

However, China's civil aviation industry is preparing for a tougher year.

"The aviation industry still needs to face some challenges, including intensifying competition, dwindling resources and rising operating costs," said Cai Jianjiang, chairman of Air China.

The price of jet fuel will be a main risk for carriers, because the global economy is still recovering and it will not drop.

The International Air Transport Association also revised downward its industry profit outlook for 2014 from its previous forecast of $19.7 billion to $18.7 billion because of the higher oil prices.

Chinese carriers' exchange income might also be negative, because the renminbi depreciated in the first quarter of 2014, Li said. In 2013, the renminbi appreciation contributed greatly to Chinese carriers' income.

Chinese airlines lost 700 million yuan through exchange rates in February, while they earned 100 million yuan exchange income in the same month a year earlier.
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Old March 27th, 2014, 04:09 PM   #1604
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Kangaroo route hops off from Europe via China
25 March 2014
Copyright 2014 China Daily Information Company

Sitting in his office amid the bustle and din of flights taking off and landing at Amsterdam Airport Schiphol, Pang Yedong, general manager of Guangzhou-based China Southern Airlines, said he expects to see more Chinese carriers using the travel hub as a connection point for long-haul journeys.

Schiphol is already an important destination for China Southern and the starting point for European passengers flying to Australia and New Zealand on its flights, with a stopover in Guangzhou.

"The long distance and the absence of direct flights have helped us fare well," Pang said.

"Most of the 14 flights that we operate every week are fully booked. What's more, a majority of the passengers are from Europe, thereby increasing our global appeal," Pang said. "For many of these travelers, China Southern flights are ideal because they give them a one-hour stopover in Guanghzou before proceeding to Australia or New Zealand."

Pang said offering more convenient services for Europeans who want to fly to Australasia has been an important growth area for the Chinese carrier in Europe. "We have realized how important Amsterdam and Guangzhou have been to our global plans," he said.

Guangzhou joined Beijing and Shanghai in granting 72-hour visa-free stopovers from Aug 1 last year. Under the rules, passport holders from 45 countries can enjoy visa-free stays of up to 72 hours in these Chinese cities if they are flying on to other international destinations.

Guangzhou is China's third-largest city and the commercial and manufacturing hub of the Pearl River Delta region. It is also home to China Southern, which is listed on the stock market in Hong Kong, Shanghai and New York.

"We have joined the competition on the so-called kangaroo route, and we have an advantage because it takes less time than transferring in other Asian cities," Pang said.

"What's more, we use new aircraft in some sectors, which increases our appeal further," he said.

Pang said the carrier uses new Boeing-787s on the Guangzhou-Auckland route and operates more than 10 flights every week. China Southern has also launched daily flights from Guangzhou to Sydney and Brisbane.

Pang said the Amsterdam-Guangzhou-Australia flights are shorter than other routes. "We offer rapid transfer services which last only about one hour or so. In total, the overall journey takes around 21 or 22 hours by this route."

For decades, air travelers between Europe and Australia had to spend about 25 or 26 hours on flights operated by other airlines. The route started in 1935 with a flight between London and Brisbane. Stopovers once included Brisbane, Darwin, Singapore, Bangkok, Calcutta, Karachi, Cairo, Rome, Frankfurt and Amsterdam. The route was nicknamed the kangaroo route because of all the hops it took and the destination in Australia, where the animal is indigenous.

Pang said Chinese carriers have now reached a scale where they can compete effectively with global rivals on long-haul routes. The financial and fiscal crises from 2008 affected the profitability of other global carriers and hampered their ability to buy new aircraft.

"We attach high importance to service quality and plan to focus more on enhancing our overall skills so that we can become a world-class carrier," Pang said.

China Southern carried more than 91.8 million passengers in 2013. It was ranked the best airline in Asia after passenger traffic increased 6.1 percent from 2012. Freight traffic in 2013 was 1.28 million metric tons, a year-on-year growth of 3.6 percent. The carrier also boasts the best safety record among Chinese airlines, with no major accidents in the past 235 months. By the end of 2013, the airline had recorded 11.8 million safe flying hours.

The company has expanded its overseas market and added direct flights between Guangzhou and Russia last year. It is planning more flights between the provincial capital of Guangdong and other countries, including Australia, New Zealand, Great Britain and Canada.

Pang said his company now has more than 40 international air routes and, by cooperating with Sky Team Alliance members, it has built an airline network connecting 187 countries and regions. In addition, the company also employs more than 150 foreign crew, 20 of them from the Netherlands.

Pang said Amsterdam has also been growing in line with the company's growth and expansion. In 1996, when the office was launched, there were only two flights every week between Amsterdam and Beijing and Guangzhou. Now, there are two flights a day. Every week, there are 12 to 14 cargo flights from Amsterdam to China.

"A very significant development is that we have entered into a close partnership with KLM Royal Dutch Airlines," he said.

Apart from Amsterdam, Pang said China Southern is banking on its Paris and London offices to shore up growth in Europe. The two offices have also contributed to sending more Europeans to China and Oceania through the London-Guangzhou, Paris-Guangzhou lines.

Pang, however, did not reveal any actual passenger numbers for these flights.

To further expand its operations, Pang said his company is planning to launch a new route from Guangzhou via Changsha to Frankfurt this year.

"In Amsterdam, we have done quite well, and, last year, Schiphol airport named us best performer among all Asian carriers," he said. "This is certainly better than the 2012 accolade, which listed us as the carrier with most potential."
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Old March 29th, 2014, 07:08 AM   #1605
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Old March 30th, 2014, 10:45 AM   #1606
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China Southern profit down 24%, as state airline earnings slump
29 March 2014
Agence France Presse

China Southern Airlines, the country's biggest airline by fleet size, said net profit for 2013 fell more than 20 percent, the latest Chinese carrier to be hit by a weak economy and stiff competition.

Net profit was 1.99 billion yuan ($320 million), down 24.2 percent from the previous year's 2.62 billion yuan, with revenue also one percent lower at 98.55 billion yuan, it said in a statement filed late Friday to the Hong Kong stock exchange.

The Guangzhou-based airline is one of the three state-owned airlines hit by double-digit net profit drops for 2013, with Air China seeing a 32 percent fall, at 3.32 billion yuan, compared to 2012.

Shanghai-based China Eastern Airlines also saw 2013 net profit slid by 25 percent to 2.38 billion yuan compared to the previous year.

"In 2013, the overall global economy was still on the basic trend of slow recovery, the risk of a deterioration of the economy was not completely removed," China Southern said in the statement.

Despite a higher demand for air travel in China, other travel alternatives including express railways and high oil prices contributed to lower profits for the airline, it said.

China's aviation market will enter "an era of full competition", the airline said of 2014, citing moves to open up the industry.

"Low-priced flights will become more popular, and airlines with low cost structure will have rapid development," it said, adding that there would be less room for growth for the "traditional business market".

Both China Eastern Airlines and Air China cited similar challenges when they reported their 2013 net profit, saying intensified competition and sluggish recovery in the world economy were to blame for the drop in earnings.

"The aviation industry will continue to face serious challenges such as intensifying competition, dwindling resources, and rising operating costs," Air China said of 2014 in a Tuesday statement.

China Southern launched its new Boeing 787 jets on daily flights between Guangzhou and Vancouver last month

The airline reported a 19 percent decrease in net profits for the first half of 2013 due to a slowdown in domestic demand.
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Old March 30th, 2014, 11:30 PM   #1607
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a340-600 china eastern

http://www2s.biglobe.ne.jp/~ito-nori...s/MU_A346.html
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Old March 31st, 2014, 02:26 PM   #1608
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Old April 4th, 2014, 01:55 PM   #1609
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China focus: big-three air carriers' 2013 net profits slump, 2014 outlook gloomy

BEIJING, Apr. 2 (Xinhua) China's big-three airline companies have all released their 2013 financial results, and the three companies reported total net profits of 7.589 billion yuan, tumbling about 30 percent from the 11.01 billion yuan in 2012.

The three air carriers include China Eastern Airlines (CEA.NYSE; 00670.HK; 600115.SH), China Southern Airlines (ZNH.NYSE; 01055.HK; 600029.SH) and Air China (00753.HK; 601111.SH).

Analysts believe that macroeconomic growth slowdown, intensified competition and the drastic decline of ticket prices were the key factors behind the downbeat profit in 2013. Air companies also face the same unfavorable supply and demand relationship this year, while the depreciation of the RMB makes the situation even worse.

-- Great drop of net profits in 2013

According to its annual financial report for 2013, Air China's operating revenue stood at 97.628 billion yuan in 2013, down 2.22 percent year-on-year. The company generated 3.318 billion yuan of net profits attributable to shareholders, down 32.41 percent year-on-year.

China Eastern Airlines' operating revenue reached 88 billion yuan in 2013, up 1.85 percent year-on-year, and it realized 2.376 billion yuan of net profits, falling 27.89 percent year-on-year.

China Southern Airlines' operating revenue was 9.813 billion yuan, down 3.3 percent year-on-year. It pocketed 1.895 billion yuan of net profit, down 27.89 percent year-on-year.

China Eastern Airlines attributed the 2013 net profit drop to the slow recovery of developed economies, the slowdown of emerging economies' growth, high fuel prices, weaker demand of high-end business customers and intensified competition in the industry.

Air China gave almost the same explanations for its profit drop as China Eastern Airlines.

-- Ticket prices plunged, and air companies suffered loss in main business

The pillar factor supporting the profitability of the three air carriers was not their core business, but exchange gains due to RMB appreciation and government subsidies.

Taking China Eastern Airlines as an example, its non-core businesses factors, such as exchange gains and non-operating income, contributed greatly to its net profit.

Huang Jinxiang, an analyst with Haitong Securities, said that China Eastern Airlines' exchange gains jumped to 1.976 billion yuan in 2013 from the 148 million yuan in 2012 as the RMB appreciated about 2.6 percent in 2013 compared with a slight appreciation in 2012.

China Eastern Airlines' income from non-operating businesses totaled 3.216 billion yuan in 2013, higher than the 2.689 billion yuan in 2012. Notably, government subsidies took the lion's share in the air carrier's non-operating businesses.

Excluding exchange gains and government subsidies, China Eastern Airlines incurred 2.9 billion yuan of losses in 2013, according to Huang.

The other two companies saw the same situation as China Eastern Airlines.

Industrial insiders claim the main reason for the loss in the three companies' core businesses can be put down to a great drop in ticket prices.

Revenue passenger kilometer (PPK) is an important indicator measuring ticket price levels. According to their financial reports, Air China's PPK stood at 0.62 yuan in 2013, down 10.1 percent year-on-year; China Southern Airlines' stood at 0.59 yuan, down 13.24 percent; and China Eastern Airlines' was 0.60 yuan, down 8.15 percent.

Zhang Jing, an analyst with Phillip Securities, said the significant decline of ticket prices put air carriers in an awkward scenario of "operating revenue increase but profit drop" in 2013.

The three carriers competed with each other by lowering ticket prices to grab market shares due to inadequate effective demand, according to Huang.

-- Supply and demand relationship not optimistic, RMB depreciation to make situation even worse.

China's civil aviation industry began to see profits drop year-by-year after scoring its best performance in 2010, and there is still no signs of improvement.

As the civil aviation industry is highly linked with the macro economy, aviation demand is unlikely to rebound given the domestic economy has entered the stage of de-leverage.

Li Jun, an analyst with Galaxy Securities, predicts the growth of China's aviation will slow down somewhat in 2014, with the growth estimated to reach 9.5 percent to 10.5 percent.

In addition, the development of high speed rail will attract some passengers from airlines.

Therefore, the ticked price is unlikely to rebound in 2014, according to Li.

China's economic fundamentals have not turned around, with consumption growth turning out lower than expected and export growth shifting to negative growth, which casts uncertainties on the performance of the aviation industry, according to Huang.

Exchange gains, which have played an important role in air carriers' performance in past years might make the situation even worse.

Statistics from the Civil Aviation Administration of China show China's airline companies suffered 700 million yuan of exchange losses in February this year, compared to some 100 million yuan of exchange gains during the same period of last year.

The People's Bank of China, the central bank, announced it would widen the daily fluctuation band of the USD/RMB exchange rate in the spot market on March 15, which strengthened RMB deprecation anticipation, and triggered anther round of RMB retreat.

Analysts believe the era of steady RMB appreciation has come to an end for a while, and two-way RMB fluctuations will be normal in the future.

Without billions of stable exchange gains, the financial results of air carriers might even be unpleasant this year.
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Old April 6th, 2014, 07:29 PM   #1610
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Old April 9th, 2014, 03:49 AM   #1611
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a340-600 hainan airlines?.....
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Old April 9th, 2014, 07:24 AM   #1612
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Quote:
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a340-600 hainan airlines?.....
Bought 2nd hand and they were previously leased to Cathay Pacific.
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Old April 11th, 2014, 12:11 PM   #1613
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Air routes between China, Hawaii to see busy traffic

BEIJING, Apr. 11 (Xinhua) Air routes between Chinese cities and popular tourist resort Hawaii are expected to see a surge in passenger flow and traffic in the next few months.

In addition to the air route launched by Air China (00753.HK; 601111.SH) earlier this year, there will be two service options for travelers between Beijing and Hawaii after Hawaiian Airlines opens direct flights on the Beijing-Hawaii route later this month.

China Eastern Airlines (CEA.NYSE; 00670.HK; 600115.SH) also increased capacity on the route linking Shanghai with Honolulu to accommodate the rising demand.

Thanks to convenient traffic, more and more Chinese tourists have chosen Hawaii as an in-depth travel destination, market observers say.
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Old April 13th, 2014, 04:53 PM   #1614
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Old April 14th, 2014, 10:53 AM   #1615
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China's soaring potential a springboard for budget airlines

BEIJING, April 10 (Reuters) - The chairman of Spring Airlines requires his employees to use both sides of a sheet of paper before throwing it away and even removed most of the bulbs lighting the corridor to his office - all part of his quest to save money.

China's first low-cost airline has been profitable since 2006, its first full year of operation, but the budget aviation market is about to get a lot more competitive as the government moves to promote low-cost travel to meet a surge in demand from an increasingly wealthier population.

Over the last 18 months, Spring has been joined by two new competitors. China's big state-backed carriers are also looking at launching budget carriers, a strategy industry executives say would be an additional boon to plane makers Airbus Group and Boeing Co..

The Civil Aviation Administration of China (CAAC) plans to add nearly 80 new airports by 2020, including a $14.5 billion second airport in the capital Beijing, and is urging other airports to build new terminals and convert existing facilities to handle budget airlines.

The initiative, industry observers say, would usher in a new era for low-cost carriers (LCCs) in a country where one in four people travelled by air in 2013. That number is set to rise to almost the whole population in the next two decades, according to Airbus executives, with China to replace the United States as the world's largest aviation market during the same period.

"There will be a number of new entrants," said Andrew Herdman, director general of the Association of Asia Pacific Airlines. "We know that model works well for short-haul flights elsewhere. There is no reason it shouldn't work well in China."

For Wang Zhenghua, founder and chairman of Spring Airlines, progress has been slow. The Shanghai-based carrier has been flying for nine years and still struggles to get prime landing slots at Beijing Capital International Airport, causing Spring to rack-up 80 million yuan ($12.90 million) in total losses on a route that has been highly profitable for the wider industry.

"We only get to land in Beijing either early in the morning or late at night," Wang told Reuters. "Slots are pretty tight, but unfairness and discrimination are the main issues here."

Beijing, one of China's busiest airports, is home to Air China and a critical hub to other state-backed carriers. The CAAC recently pledged to assign slots to all airlines in a more fair way.

Unlike Europe, where budget carriers control 50 percent of the short-haul market, Spring booked about 11 million passengers last year, or less than 5 percent of the total China market.

Pilot shortages, limited airspace and regular delays have held back growth, industry executive say, while fast and affordable rail also poses a threat. China's State Council announced last week that it was speeding up construction of railway lines.

SMELLING THE MONEY

The low fares and no-frills model now popular in China was pioneered by Southwest Airlines Co in the early 1970s and successfully emulated by Ryanair Holding PLC, AirAsia Bhd and easyJet Plc.

"The growth potential for LCCs is huge because China has a big population and many people have never taken a plane," Spring Airlines' Wang said. "Our clients can be anyone who is price-sensitive, it's not just wage earners."

In November, CAAC deputy director general Xia Xinghua endorsed the development of budget travel when he appeared at a Beijing low-cost carrier forum.

That month, Wang Junjin, chairman of privately owned Juneyao Group, set up Jiuyuan Airlines, a budget carrier based in Guangzhou, southern China's most important aviation hub.

Juneyao also operates a namesake full-service Shanghai-based carrier, which services 60 domestic cities, and a handful of Asian destinations, with a fleet of 34 Airbus A320 aircraft.

HNA Group, parent of Hainan Airlines Co Ltd, converted its Chongqing-based subsidiary West Air into a budget airline at the end of 2012.

West Air, which mainly shuttles between small cities, flew 3.3 million passengers in 2013, its first full year of service. More importantly, it reported a load factor of about 90 percent, 10 percentage points higher than the industry average.

China's biggest government-backed carriers are also eyeing budget opportunities.

China Southern Airlines Co Ltd is considering setting up a low-cost subsidiary, its chairman Si Xianming told Reuters recently. Air China is also "studying" the low-cost market, Chief Financial Officer Fan Cheng told China's state radio this week.

China Eastern Airlines Corp Ltd is turning Beijing-based subsidiary China United Airlines into a budget carrier, local media said.

OFF THE RAILS

More competition may mean more margin pressure. Spring Airlines now has a profit margin of 10 percent, higher than the industry average of 8 percent.

Wang attributes Spring's success in part to stringent cost cutting: all staff, Wang included, must fly with heavily discounted tickets or take trains for business trips. Employees are expected to stay in budget hotels, and no one leaves the office without turning off the lights.

When the company moved its headquarters into an ageing hotel near Shanghai's Hongqiao airport, Wang not only took away eight of the 10 bulbs that light his office corridor but also voted against refurbishing, a decision that makes think twice when he has trouble flushing the toilet.

"The pipes in the bathroom are too old. It's a pain to flush the toilet," he groaned. ($1 = 6.2123 Chinese Yuan)
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Old April 14th, 2014, 05:08 PM   #1616
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Old April 15th, 2014, 04:02 PM   #1617
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Old April 23rd, 2014, 05:59 PM   #1618
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Air China provides on-board broadband Internet service for 1st time

BEIJING, Apr. 16 (Xinhua) -- Air China flew a plane with on-board broadband Internet and Wifi service on Wednesday, marking the first land-to-air Internet service in China.

The CA 4109, flying from Chengdu to Beijing, provided 4G Internet service with a bandwidth of up to 30M, using signals sent from the base stations along the flight route of CA 4109.

Passengers are hopefully to be able to connect to Wifi network with laptops or tablets on plane in the future, while the cell phones still have to be turned off during flight.

The technology is solely developed by China.

Air China will put in more investment to promote a wider use of the high-speed Internet service on board in the future, the company said.
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Old April 24th, 2014, 06:35 PM   #1619
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