25 Mar 2019

China Aviation Industry Newsletter 25 March

Air China announced that it will add more flights from Korla to Beijing in order to meet demand Air China announced that it will add more flights from Korla to Beijing in order to meet demand effect 1 April direct flights between the two cities will operate every day. BOC Aviation has delivers an Airbus A320NEO aircraft to Uzbekistan Airways BOC Aviation announced 13 March the delivery of an Airbus A320NEO aircraft to Uzbekistan Airways. This aircraft is from the Company's existing order book. CALC Announces Another Set of Solid Annual Results in 2018 with Continuous Transformation Towards an Asset-Light Model CALC announced 21 March the Group’s results for the year ended 31 December 2018. Total revenue and other income increased by 15.6% to HK$3,341.5 million, attributable to increased lease income from continued expansion of the Group’s aircraft leasing business with profit for the year grew 10.1% to HK$808.9 million. The Group’s fleet size had increased to 133 aircraft as at 31 December 2018, of which 115 are owned by CALC and 18 are managed for CAG. Mr. CHEN Shuang, JP, Chairman of CALC, said, “We are delighted with CALC’s robust results in 2018. Though the aircraft leasing industry is expected to tackle headwinds in the coming year, we see positive signs for optimism in early 2019 and expect the emerging markets will continue to support industry demand.” Cathay Pacific Airways' Recipe to Turn the Scale Cathay Pacific Airways has gained a net revenue of 2.35 billion Hongkong dollars (HKD) with a year-on-year growth of 286.26% by the end of 2018 after two years' loss, which is way more than what the shareholders' expected. The growth in performance obviously increased the stock price which was up 2.28% to 13.48 HKD per share till closing on March 13, with a transaction volume of 69.85 million HKD. According to Cathay Pacific's performance report for 2018 published on March 13, the total revenue was 111.06 HKD, 14.2% up year on year with a net revenue of 2.35 billion HKD, 286.26% up year on year. In detail, passenger transport contributed 73.12 billion HKD, up 10.1% year on year, cargo service 28.32 billion HKD, up 18.5% year on year. Aviation food, withdrawn money and other services contributed 9.63 billion HKD, up 38% year on year. China and South Korea sign expanded bilateral air services MoU Blue Swan Daily reported 21 March CAAC announced China and South Korea held a new round of aviation discussion between 13-15 March to exchange views on current market conditions and future development. China and South Korea signed a MoU to add 14 weekly flights between Beijing and Seoul to support Beijing Daxing International Airport hub development. China, Italy sign BRI MoU to advance connectivity China and Italy signed a memorandum of understanding (MoU) to jointly advance the construction of the Belt and Road during Chinese President Xi Jinping's state visit to the country. The two sides welcome the signing of the intergovernmental MoU on jointly advancing the Belt and Road construction, said a joint communique issued by the two countries. The two sides realize the huge potential of the Belt and Road Initiative (BRI) in promoting connectivity. Increased air links can be expected as the two sides agreed to facilitate airlines from each other to do business and ease the market access for them, according to the communique. Sichuan Airlines Cargo will operate full freight flights to Brussels Airport in April   Sichuan Airlines Cargo intends to begin its operations by the end of April with three flights a week between Brussels and Chengdu, to be gradually increased to six by 2020 using Airbus A330-200F aircraft. Acumen Aviation © 25 March 2019 All Rights Reserved