Air China loooks like having a RMB4.157 billion yuan for 2007 under international accounting standards, up 55% from the RMB2.688 billion it acheived a year earlier.

Total revenue comes in at RMB51.28 billion, up from RMB44.92 billion a year earlier.

The brokerage UBD said the airline saw a 59% rise in its second-half earnings, underpinned by strong yields.
‘Passenger yields could surprise on the upside because capacity growth slowed in the second half but slower capacity growth could also lead to dis-economies of scale.’

UBS noted that non-operating items will account for 60% of Air China’s pre-tax profits.
Source: CNN Money.com

China’s air traffic continued to soar in 2007. There were 387.6 million passenger trips, up 16.8% from the previous year.

The General Administration of Civil Aviation said that international passenger traffic jumped by 17.5% to 38.3 million in 2007, while trips on domestic flights rose by 16.7% to 349.3 million.

Rises in oil prices and the rapid expansion of the shipping industry led to a slowing of growth in cargo and mail last year, which registered a 14.3% rise to 8.6 million tons, compared to 2006’s 19% rise.

The report said international journeys have become more attractive for Chinese travellers because of the appreciation of the yuan.

The spectacular growth in air travel has fueled a similar boom in airport construction to meet the demand, with around 100 new airports planned by 2020 at a cost of $60 billion.
Source: Hemscott

Air Asia will launch flights from Kuala Lumpur to Hainan in May. The low-cost carrier already has four routes linking Kuala Lumpur to China: Guangzhou, Shenzhen, Hangzhou and Macao.

Established in 2001, the Kuala Lumpur-based airline has now carried more than 46 million passengers.

To keep fares low, the airline does not provide free food or beverages on board.

The uniforms of the hostesses raised complaints in the Malay parliament. A Wanita Umno delegate from Kelantan said the uniforms of the female cabin crew of budget airline AirAsia are too short and ’show too much skin.’

Kubang Kerian delegate Datuk Zaleha Hussin said the uniform was an embarrassment to women.

She called on the Government to compel the carrier to change the uniform of the stewardesses, which she felt was too revealing.
Source: China View

New readers start here. Air China wants to buy China Eastern. China Eastern considers this a fate worse than death and if it is going to be sorted — and by damn it needs it — than Singapore Airlines would be the airline of choice. (The fact that Air China and China Eastern are both effectively government owned shows that the China government uses an unique for of democracy in running its holdings.)

Air China Acting Chairman Kong Dong said Friday that China Air now plans to introduce Cathay Pacific Airways as its partner in its bid for China Eastern Airlines to help improve CEA’s management.

Kong Dong admitted that Singapore Airlines, CEA’s preferred cooperative partner, is among the world’s best carriers but said, ‘Cathay Pacific also possesses many advantages.’ Yes it does. As in already possessing some of the action by having shares in China Airlines.

CX Chairman Christopher Pratt commented last week that the Hong Kong-based carrier will support CA’s bid for CEA but warned that ‘the result won’t come out soon.’

Kong Dong said CA will not propose a new bid despite CEA’s rejection but will elaborate on its current offer if CEA is willing to accept it. He also said that the State-owned Assets Supervision and Administration Commission of the State Council, the controlling stakeholder of China’s state-owned airlines, will not interfere with CA’s bid.

SASAC Vice Minister Wang Ruixiang said last week that the Chinese government will facilitate dialog between state-owned airlines but ‘it won’t force them to merge if they hold different views on it.’

This story has legs and will run. However, the harsh truth is that China Eastern is not remotely up to international standards in inflight service and that is where the battle will be fought. China Air is better, but not by a large margin.

Could SIA turn China Eastern around and get the people in cabin service to understand that passengers are not just unwonted interruptions? One doubts it. But, plainly, with open skies the new formula Air China and China Eastern have got to lift their game or they will be swamped.
Source: ATW Online

China’s self-developed commuter aircraft, the Modern Ark 60 (MA60), has received new purchasing or leasing orders of 20 aircraft to make its total orders to 116.

The China Aviation Industry Corporation I (AVIC1) said its subsidiary, Xi’an Aircraft Industry, has signed contracts with Yunnan Ying’an Airlines and AVIC1 Leasing Company for the purchase and leasing of the 20 MA60 twin turbo-prop commuters.

Of the 20 planes, ten are purchasing and leasing contracts while the other half are orders of intent. The first ten planes will start to be delivered in May 2008.

MA60 is the most successful civil aviation aircraft developed by China so far. It has a maximum take-off weight of 21,800 kg and a seating capacity of up to 60 passengers.

The XAC said the plane’s reliability, comfort, economy and maintainability reach the standards of similar advanced commuter aircraft in the world.
Source: China View