Shanghai Airlines is considering an order for Airbus A330 medium-range aircraft as it speeds up the expansion of its international network.

Zhou Chi, chairman of Shanghai Airlines said the company is looking to buy 10 single-aisle A320 aircraft. He said the company is also considering buying A330 aircraft, but has yet to decide the size of the order, adding that the wide-body planes could be used to reinforce its flights to neighbouring markets.

Shanghai Airlines, which had earlier placed an order for nine of Boeing’s 787 or Dreamliner, is also scheduled to launch daily flights to the United States and the German city of Hamburg next year.

But the plan may be postponed because of the delayed delivery of the Boeing aircraft.

President Fan Hongxi said Shanghai Airlines has now joined Star Alliance, the world’s largest airline grouping. It plans to expand its international network on its own or via code-sharing with other members of the alliance.

He said international flights now make up less than 10% of the airline’s sales and the airline hopes to raise that ratio to roughly 30% in five years, adding that Star Alliance membership would be a big help.

Sales of the Shanghai-based carrier, which operates a fleet of 59 aircraft, rose 23% to US$1.2 billion from January to September.
Source: China Daily and Cargo News Asia

Japan and China may start flights from airports in Tokyo and Beijing that are closer to the capitals’ centers to reduce travel times, according to a statement on the Japanese transport ministry’s Web site.

This is important to the traveler.

Sydney airport is near the center of the city. Kuala Lumpur’s airport is in the next state. This massively affects travel times.

Japan’s transport minister, Tetsuzo Fuyushiba, proposed starting flights between Tokyo’s Haneda and Beijing’s Nanyuan during a visit to China last week. Officials will try to agree on the services at the countries’ next aviation meeting in February.

China and Japan have already started flights between Haneda, which mainly handles domestic flights, and Hongqiao airport in Shanghai, which is 18 kilometers closer to the city center than Pudong airport.

Takuya Osaka, an analyst in Tokyo at Morgan Stanley Japan Securities said, ‘It will be very convenient Haneda airport is much closer to the city’s centre.’

Officials may reach an agreement before China hosts the Olympic Games next year.

Haneda, Japan’s busiest airport, is 19 kilometers from Tokyo station, compared with 66 kilometers for Narita.

Nanyuan is 13 kilometers from Tiananmen Square, compared with 25 kilometers for Beijing Capital International Airport.

Source: Bloomberg

Cathay Pacific Airways has agreed to buy eight Airbus A330 aircraft for a listed price of US$1.7 billion, but make me an offer, mainly to serve in the Asia Pacific region. (Our illustration is of how Cathay is configuring economy.)

This is the second major aircraft acquisition announced by the company in less than a month following Cathay’s biggest single aircraft order placed in November for 17 Boeing jets with a catalog price of $5.2 billion.

Cathay said the Airbus aircraft would be used to replenish and expand its fleet.

The Airbus aircraft acquisition will be funded through commercial bank loans, other debt instruments of the company and cash from business operations. Cathay expects delivery of the aircraft in 2012.
Source: CargoNews Asia

Beijing Capital International Airport (BCIA) is expected to become one of the world’s top five busiest airports by the end of next year. This is not a record to boast about.

A record to boast about would be that the airport handles all passengers with style, efficiency and dispatch.

That all flights depart on time. (Airports have no control over the timing of arrivals.)

That there is more than enough seating for people waiting for flights. And the counter staff is polite and efficient.

As this does not at the moment apply to many airports in the world — Hong Kong and Singapore might be exceptions — the numbers handled are simply nothing to boast about.

BCIA said in 2008 the will have been more than 64 million passenger departures and arrivals. It has already handled 50 million passengers this year ranking it among the world’s top 10 busiest airports.

Atlanta and Chicago in the U.S., London in the U.K. and Tokyo of Japan have the world’s busiest airports by both passengers and cargo volumes in past years. That is quantity not quality. China LawBlog reminds us that the late London Jeffrey Barnard wrote of Heathrow: ‘I welcome death for I will not have to pass through Heathrow.’

In Beijing a new terminal building is now under construction, largely in order to meet high demands of air transportation during the Olympic season next year.

With No. 3 Terminal being completed in February 2008, the three terminals of the airport will have a total annual transport capacity of about 82 million passengers.

Besides the terminal construction project, BCIA has invested nearly RMB2 billion (US$266 million) in upgrading its security checks, service counters, luggage systems and information systems.

And now the General Administration of Civil Aviation of China (CAAC), a regulator oversees China’s air transportation, has announced that it has proposes to build a second international airport in southern suburbs of Beijing.

The second international airport, proposed to begin building in2010 in Daxing District, is expected to alleviate already overheated ground traffic to BCIA and accommodate many more transcontinental flights to China in the years to come.

All of that is the good news. Now a quick reality check from someone who is in a position of some responsibility.

Sun Defu, a senior official with the Civil Aviation Administration for the North China Area, was reported in China Daily saying the airport would need to at least improve the transfer service to attract more international travelers.

Sun Defu said, ‘The airport should rearrange the flight schedule to solve flight connection problems and help transfer passengers save time.’
Source: People’s Daily Online and People’s Daily Online

We all thought the China Eastern fight was over and Singapore Airlines had gathered in its share. But as the famous baseball coach Yogi Berra said, ‘It’s not over until it’s over.’

According to a report by the Centre for Asia Pacific Aviation Air China has moved closer to regaining control of China Eastern from Singapore Airlines last week after acquiring another 4.28 million additional shares increasing its holding to 12.07%.

The report stated Air China was anxious to acquire China Eastern in order to become a dominant player in the China’s aviation future. However it goes against the government’s system to build several major players which includes China Southern and Grand China Airlines.

If Air China is successful in their acquisition plans, together with its partnership in Cathay Pacific and Dragonair, it would undoubtedly become a major competitor in global aviation.
However the carrier will need another 16% stock by January 2008 in order to gain voting power to block Singapore Airlines/Tamasek’s bid to purchase another 24% of China Eastern.

If successful, Air China will have to still have to convince a reluctant Beijing that it should purchase China Eastern instead of Singapore. At a bet it will not happen. But, ‘It’s not over until it’s over.’
Source: eTravel Blackboard