29 Apr 2019

China Aviation Industry Newsletter 29 April

Aeroflot to Expand China-Russia Flights Aeroflot  will launch more direct flights between China and Russia as a result of increasing passengers traveling between the two countries. The airline currently operates direct daily flights connecting Moscow to Beijing, Shanghai, Guangzhou and Hong Kong. The airline last year transported nearly 1.4 million passengers between Russia and China, a rough growth of 5-7%year-on-year, according to the airline. "We are very confident of the growth potential in the China market. This year, we plan to launch new flights connecting Moscow and second-tier Chinese cities Chengdu and Urumqi, and we are waiting for their approval. "We also plan to add more frequencies of our current flights," said Aeroflot deputy CEO Igor Chalik. CDB Aviation Closes $525 Million Unsecured Credit Facility CDB Aviation announced 23 April the closing of a $525 million unsecured credit facility, which marks the company’s first such syndicated transaction. The five-year facility, which will be used for general corporate purposes, was led by Bank of China (Hong Kong) Limited, Crédit Agricole Corporate and Investment Bank, Goldman Sachs (Asia) L.L.C., Mizuho Bank, Ltd., and Société Générale Corporate and Investment Banking as Mandated Lead Arrangers and Bookrunners. Crédit Agricole Corporate and Investment Bank acted as the facility Agent. CDB Aviation Receives Investment Grade Ratings from Moody's, S&P Global and Fitch CDB Aviation announced 25 April that the ‘big three’ global credit rating agencies have each assigned strong investment grade (“IG”) issuer credit ratings to CDB Aviation. This important milestone has been reached on schedule, as part of CDB Aviation’s strategic effort to transform its aircraft leasing platform into a global, best-in-class, full-service lessor. China Southern Airlines Launches Guangzhou City Tour for Kenyan Travelers China Southern Airlines has launched a Guangzhou city tour package for Kenyan travelers to boost China-Kenya ties. Huang Guanwen, general manager for Nairobi at China Southern Airlines, told a media briefing in Nairobi that tourists on its direct flight between Nairobi and Guangzhou and transiting to other cities will enjoy a scenic trip of the Chinese city for free. Daxing Airport to Become Engine of Regional Growth The airport, scheduled to be completed on June 30 and open on Sept 30, aims to be a comprehensive international transportation hub. It is planned to be a new engine for the development of the Beijing-Tianjin-Hebei region, including the emerging Xiongan New Area, local officials said. The airport is projected to have an annual passenger throughput of more than 100 million passengers and an annual cargo throughput of 4 million metric tons in the long run. Emirates Connects Chinese Passengers to West Africa Destinations Building Air Routes for the Belt and Road Initiative Emirates, and Africa World Airlines (AWA), the Ghanaian airline headquartered in Accra, have announced a one-way interline agreement whereby Emirates opens up new African destinations for Emirates customers from May 2019. The UAE is located at the intersection of the Belt and Road Initiative. This agreement will help build more efficient and convenient air routes for China, as it looks to connect with the world through the Belt and Road Initiative. Emirates operates daily flights from Dubai to Accra until 2nd of June increasing to 11 weekly flights. The agreement with AWA will further extend Emirates' connectivity from Accra with up to ten flights daily to Kumasi, four flights daily each to Tamale and Takoradi and six weekly flights to Monrovia and Freetown. Int'l Passengers in Shenzhen Airport Up over 30%  Shenzhen Bao'an International Airport said that the volume of international passengers in the airport grew more than 31% to about 1.2 million people in 2019Q1. The growth is due to the opening of more international airlines linking the southern Chinese city with the world, according to the airport. Turkish Airlines Flights to China Hit 20-Year Mark Turkish Airlines, which flies to more countries and international destinations than any other airline, is marking the 20-year anniversary of its entry into the Chinese market. The airline currently operates daily flights to three key destinations in the Chinese mainland - Beijing, Shanghai and Guangzhou - and six flights a week for the Hong Kong route and a daily flight to Taipei and also set up a Chinese call centre to facilitate better communication with Chinese travellers. As China now pursues its Belt and Road Initiative, Turkey is again taking the position as a key investment and cooperation partner that will help bridge the East and the West. Acumen Aviation © 29 April 2019 All Rights Reserved.