03 Sep 2018

China Aviation Industry Newsletter 3 September

Air China plans to sell cargo venture stake to sister unit for $357 million Air China Ltd it plans to sell a 51 percent stake in Air China Cargo to a sister unit for 2.44 billion yuan ($357.16 million), and would focus on core passenger operations. The carrier said Air China Cargo's profitability had improved, intensifying competition, exchange rate fluctuations and the complicated international trade situation had created many uncertainties. "Therefore the sale of Air China Cargo is the company's strategic and rational response to the air cargo market's uncertainties, to strengthen the stability of the company's operations," it said. China Eastern unveils new flight management tech at STX Singapore 2018 China Eastern Airlines to announced the launch of the carrier’s new Airline Operation Centre. The new system will use Sabre’s existing AirCentre suite – built to organise and manage flights as well as to provide real-time ops feedback – as the core system provider of China Eastern’s “next generation” flight management platform. China Eastern will be able to optimise flight plans, deliver accurate flight monitoring capabilities, reduce the workload of dispatchers, and increase productivity. China Eastern will use also Sabre’s flight movement system to enable fast decision making and facilitate operation recovery, which will directly contribute to improved operational safety and efficiency of the carrier. China airlines feel cost pinch China’s major airlines mostly saw their earnings battered in the first half of the year as a weaker Chinese yuan and higher fuel prices offset steadily rising passenger traffic. The three government-controlled airlines have ramped up their presence in the booming domestic market after previously expanding overseas routes. China is now the world’s second-largest aviation market, and increasing demand for air travel among its growing middle class is expected to ultimately push it past the United States. China Southern receives its first Boeing 787-9 China Southern Airlines received its first three-class Boeing 787-9 on 24 August. The aircraft, registration B-1169, is the sixth 787-9 to enter Southern’ s fleet, and seats 28 passengers in business-class, 28 in premium economy and 220 in economy. CIB Leasing Converts CRJ Series Order to Add Five 90-Seat Q400 Bombardier Commercial Aircraft and Industrial Bank Financial Leasing Co., Ltd (CIB Leasing) announced that the parties have agreed to convert a previously announced order for 10 Bombardier CRJ Series aircraft to five 90-seat Bombardier Q400 turboprops, and five Bombardier CRJ900 regional jets. The converted purchase agreement, based on list price, is valued at about US$ 420 million. Heathrow expansion to make London ‘destination of choice’ from China The first flight direct from the Chinese megacity of Chongqing landed at Heathrow over the weekend. Tianjin Airlines introduced three flights a week on the route using an Airbus A330-200 and is expected to carry up to 81,000 passengers a year. London Heathrow Chief commercial officer Ross Baker said “We are tremendously pleased to welcome our tenth direct connection to China – and direct link to some of the most stunning scenery and culinary experiences China has to offer. Heathrow is proud of its role as the UK’s Hub airport and biggest gateway for Chinese passengers and cargo going between our two countries. Hanian Airlines launches direct flight between Shenzhen, Zurich The new Shenzhen-Zurich flight, the first of its kind linking China's relatively rich and populated Shenzhen area and Switzerland, was scheduled to fly twice a week on Monday and Friday operated by Boeing 787 aircraft. "The non-stop Shenzhen-Zurich service will bring more convenience to passengers traveling on business and for leisure, offering more opportunities for collaboration between companies in European countries and China," a statement from the Hainan Airlines said. India eyes 14 million Chinese travellers by 2023 In 2016, India received about 251,000 Chinese travellers but in 2017 the number dropped to a mere 240,000. Given this backdrop, India has set an ambitious target of increasing this minuscule figure to an eye-popping 14 million by 2023. India Tourism Ministry KJ Alphonse said  "We are opening an office in Beijing very soon, we should aim for at least 10 percent of the 144 million Chinese tourists. This can be achieved in five years if we make concerted efforts, Acumen Aviation © 3 September All Rights Reserved.