20 Mar 2018

China Aviation Industry Newsletter 20 March

Air Canada, Air China to conclude partnership talks later this year Air Canada is confident that joint-venture (JV) talks with Air China will be wrapped up this year, laying the groundwork for even closer cooperation between the two airlines, a top executive for the Canadian flag carrier said. The carrier’s vision for the JV is to create a transpacific version of its A++ alliance with Germany’s Lufthansa Group and United Airlines. AG600 to fly from water in second half of 2018 The AVIC AG600 amphibian has conducted three successful test flights from land, and is gearing up for flight tests from the water. Following its maiden flight on 24 December 2017, the four-engine turboprop conducted two subsequent flights on 24 January and 26 January, says AVIC. CALC Signs RMB10 Billion Strategic Cooperation Agreement with China Development Bank CALC announced 15 March that China Asset Leasing Company Limited a wholly-owned subsidiary of the Group, has signed a strategic cooperation agreement with the Tianjin Branch of China Development Bank with an expected amount up to RMB10 billion. The strategic cooperation between CALC and China Development Bank is mainly intended for key projects related to aircraft leasing which align with the “Belt and Road” initiatives, covering aircraft financing, working capital loans (as pre-delivery payments), asset-backed securitization projects, as well as financing for CALC’s aircraft recycling arm ARI. China expands leadership of world tourism and aviation with appointment of Dr. Fang Lio as Secretary General of ICAO The Council of the International Civil Aviation Organization (ICAO) has reappointed Dr. Fang Liu of China by acclamation as Secretary General of the UN Specialized Agency for a second three-year term, beginning 1 August 2018. “It is my great honour to accept this re-appointment and to continue to drive the transformational changes I have begun across ICAO and its Regional Offices in order to make this a more streamlined and efficient UN specialized agency leading such a dynamic sector,” Dr. Liu commented. China’s Ruili Airlines begins international service China’s  Ruili Airlines is scheduled to open its first international route March 25 from Kunming to Sihanoukville, using a Boeing 737. The Kunming-based carrier is also scheduled to open 4X-weekly Kunming-Xishuangbanna-Chiang Mai service April 4 and 3X-weekly Kunming-Xishuangbanna-Chiang Rai April 10, both using 737-700s. China Southern entered into sale/leaseback deal for 14 used A320s China Southern Airlines entered into an agreement with Guangzhou Tianshui, a wholly-owned subsidiary of CSA International, to sell 14 passenger A320s, which the carrier has been operating for 20 years. According to the valuation prepared by China United Assets Appraisal Group Co. with the cost approach, the appraisal value of the Aircraft amounted to RMB370.68 million. As at 1 March 2018, the unaudited net asset value of the Aircraft was approximately RMB379 million. DAE delivers first of three new A320s to Spring Airlines Dubai Aerospace Enterprise (DAE) announced 18 March that its leasing division, DAE Capital has delivered a new Airbus A320-200 aircraft to existing customer, Spring Airlines. This delivery is the first of three new A320-200 aircraft that DAE has agreed to lease to the Chinese low-cost airline. All aircraft will come equipped with CFM 56-5B4/3 PIP engines. Gameco’s Growth Plans Spur Hiring, Construction Guangzhou Aircraft Maintenance Engineering Co. (Gameco) is looking to dramatically expand its workforce and hangar facilities to meet growing demand from its part-owner China Southern and other customers. The company will need to add up to 280 employees this year just to meet expected staff turnover of 5-6%, said Gameco General Manager Norbert Marx during Aviation Week’s MRO East Asia conference. It also wants to bring in another 500 to account for growth, meaning a total hiring target of almost 800 workers this year. Hainan Airlines to start first direct Beijing to Dublin flight China’s Hainan Airlines will begin the first direct flights between Beijing and Dublin from June in a move set to give a significant boost to trade and tourism ties between Ireland and the world’s second-biggest economy. The route will initially involve four Hainan Airlines flights per week originating in Dublin, with two non-stop to Beijing and two stopping in Edinburgh for a short stopover to pick up additional passengers before continuing to Beijing. Juneyao Airlines and ANA Launch Codeshare and Frequent Flyer Partnership Juneyao Airlines, one of the leading private-owned airlines in mainland China and the first "Connecting Partner" of Star Alliance, will launch codeshare cooperation starting from March 25, 2018 with ANA. According to the codeshare agreement, Juneyao Airlines will place its own "HO" code on ANA operated Sino-Japan trunk routes connecting Shanghai Pudong to Tokyo Haneda, Nagoya and Osaka Kansai, and also beyond routes in domestic Japan to Tokyo Haneda, Sapporo and Naha from Osaka Kansai. On the other side, ANA will have its "NH" code on Juneyao operated Shanghai Pudong - Tokyo Haneda, Nagoya, Osaka Kansai and Nanjing – Osaka Kansai flights. Acumen Aviation © 20 March All Rights Reserved.