08 May 2018

China Aviation Industry Newsletter 8 May

AJW Group facilitates first COMAC aircraft crosswind testing at Keflavik A strategic partnership between AJW Group and COMAC has seen the first advanced regional jet developed by the Chinese manufacturer successfully complete crosswind testing at Iceland’s Keflavik International Airport. Keflavik International Airport is the location of choice for major aircraft manufacturers to conduct crosswind testing due to the angle of the runway and the high winds in the region. American cuts Chicago-Beijing as Sino-US market crowds American Airlines has decided to cut Chicago O’Hare-Beijing service effective 22 October because of overcapacity in the Sino-US market–which used to be one of the most lucrative markets worldwide. “The current fare environment severely limits our ability to successfully compete between Chicago and Beijing,” American Airlines VP network and schedule planning Vasu Raja. BOC Aviation Delivers seventh Boeing 737-800 to Pobeda Airlines BOC Aviation delivered the seventh of eight Boeing 737-800 aircraft to Pobeda Airlines. This aircraft is from the Company's existing order book. Brand Value of Chinese Airlines Is Reaching New Heights Chinese airlines edged up farther up the list of Brand Finance’s list of the 50 most valuable airline brands for 2018. Of the top ten brands, three were Chinese brands, with China Southern, China Eastern, and Air China at 6th, 7th, and 9th respectively. While Chinese airlines overall saw impressive growth in brand value, U.S. airlines are still collectively more valuable than the total value of airlines from any other country. CALC and ARI Jointly Complete the Redelivery, Export and Lease of a 20-year-old A321 CALC announced that the Group has joined hands with its associate company Aircraft Recycling International Limited by utilizing flexible aircraft asset management capabilities and rich international second-hand aircraft market resources, to complete the redelivery, export and lease of China's first Airbus A321 which was imported 20 years ago. The Group has received this end-of-lease aircraft from Sichuan Airlines, and subsequently leased to Danish Air Transport. China, Estonia enhance cooperation in aviation industry China's largest investment deal in Estonia so far was completed with a full acquisition and change of shareholder structure of a Tallinn-headquartered MRO Magnetic MRO. The deal estimated at €43 million/ $51.43 million of equity value, the deal made China's Guangzhou Hangxin Aviation Technology the parent company and strategic investor of Magnetic MRO (Maintenance, Repair and Operation) enabling it to expand its global MRO presence. China’s Leasing Play The prospects of China’s leasing market were analyzed at Engine Leasing, Trading and Finance in London last week. China’s Spring Airlines’ 2017 net profit grows 33% on strong demand Spring Airlines posted a net profit of CNY1.3 billion ($207 million) for 2017, up 33% compared to net income of CNY950.5 million in the prior year. The carrier cited strong demand and network optimization as reasons for the improvement. China Southern takes delivery of first 787-9 China Southern Airlines' first Boeing 787-9 has been delivered to its joining a fleet of 10 787-8s. The aircraft is configured with 28 business and 269 economy class seats, and features on-board connectivity that will be available to all passengers. Henan Cargo Airlines launched delayed The launch of Henan Cargo Airlines (Zhengzhou), a joint operation between Cargolux, Henan Civil Aviation and Xinggang Investment Group has been delayed until 2019Q3. Richard Forson, Cargolux CEO told The Loadstar. The Reason given was the lengthy qualification procedures. Xiamen Airlines -the Only Quality Reward Winner of Chinese Airline in Sino-US Quality Summit More than 3000 quality-control experts from over 50 countries and other multinational organizations across various industries gathered in Seattle for themed "New Vision of Quality in the Digital Era," the first China-US Quality Summit. The summit is part of the Global Summit on Quality hosted by the American Society for Quality (ASQ) during the 2018 World Conference on Quality and Improvement (April 30-May 2). Zhao Dong, president and CEO of Xiamen Airlines, delivered a speech titled "Chinese style Advancement and Innovations in Aviation Services" and shared how the company has contributed to world civil aviation. Acumen Aviation © 8 May 2018 All Rights Reserved.