Lufthansa’s Cargo unit has established a joint venture company for the handling of airfreight in the northern Chinese city of Tianjin with Tianjin Airport Hua Yu Air Cargo Terminal (HYACT).

Lufthansa Cargo holds 46% in HYACT, Taiwanese investor Hwa-Hsia International Holding Ltd has 49% and Tianjin Airport International Logistics Joint Stock holds 5%.

Lufthansa Cargo head Carsten Spohr said in a statement, ‘Tianjin will develop into the most important airfreight hub in the north of China within the next few years’.

In China, Lufthansa Cargo already holds 29% in Shanghai Pudong International Airport Cargo Terminal, 50% in the International Cargo Centre Shenzhen, as well as 25% in freight company Jade Cargo International.

Source: Forbes

China plans to build 97 new airports by 2020. China’s General Administration of Civil Aviation said the $89 billion undertaking over the next 12 years will bring the total number of civilian airports in China to 244, up from 147 in 2006.

The new airports will be built in five main regions of the country — north, east, south-central, south-western and north-western.

When the expansion is complete, it would mean that 82 percent of China’s population — expected to hit 1.45 billion people by 2020 — would be living within 100km — or a 90-minute drive — of an airport.

Currently, about 60% of the popularion lives with this range.
China’s air passenger volume rose by 15.3% to 51.9 million in the third quarter of 2007, and air freight volume increased by 11.5% to 1.05 million tons.
Source: CargoNews Asia and
Bloomberg

Ameco Beijing, an aircraft maintenance joint venture between Air China and Lufthansa, will start construction on an RMB47 million warehouse this month.

Ameco said in a statement that the 8,000 square meter facility, which should be operational by October next year, will store civil aviation materials and maintenance tools.

Air China holds a 60% stake in Ameco Beijing while Lufthansa holds the remaining 40%. The joint venture is based at Beijing Capital International Airport.

Cathay’s first Boeing 777-300ER aircraft has two huge General Electric engines which give it fuel efficiency. Nowadays, with the price of fuel, that is desperately important.

The delivery of Cathay’s first 777-300ER last month also means a better sleep for long haul passengers. First and business-class seats, but of course, electronically recline into fully flat beds. But economy class provides seats that recline within a fixed shell to boost space.

The story is that Cathay had research showed passengers want more comfort, privacy and control over their immediate living area. One would have thought a chat with any ten passengers would have brought precisely the same result.

Cathay’s investment coincides with the fact that the total number of travellers passing through Chinese airports rose 17% last year and is expected to grow by 14% annually through 2010.

Eleven airlines, including Cathay, now serve the Vancouver-to-Asia market. Canadians’ visits to China surged 56% in 2006.
Cathay predicts that, by 2020, China will have 12 million aircraft movements a year - up 400% from today.
Boeing forecasts that Asia-Pacific air traffic will expand at 6.3% a year for the next 20 years.
Of the 8,350 new jets Asia will need during this period, China alone is expected to account for about 3,000 new aircraft deliveries.

The illustration is the Boeing 787 Dreamliner Engineering flight deck simulator in Seattle.
Source: Canada.com

Cathay Pacific , Hong Kong’s largest airline, has made Boeing very happy by ordering seven 777-300ERs and 10 747-8 cargo planes, the airline said in a Hong Kong stock exchange statement . The carrier also took options for another 14 747-8 freighters and received ’significant price concessions.’ Put in an order like that and you would expect a discount.

Cathay Pacific plans to expand its fleet as China’s economic growth rate of at least 11% boosts travel and trade. The new freighters will replace older, less fuel-efficient planes, helping the airline cut its fuel bills at a time when prices are soaring.

Edward Wong, an analyst at Quam in Hong Kong said, ‘Cathay needs more airplanes to support its expansion in mainland China. China is expected to open its aviation market, and carriers need to get ready ahead of that.’

Cathay Pacific now has 30 commitments for the 777-300ER, including three already delivered, making it the largest customer for the plane in Asia.

Air travel in China grew 19.5% in the first half as economic growth made holidays and business trips affordable to more people. Cathay Pacific bought smaller rival Hong Kong Dragon Airlines last year to add flights to the mainland and if it sorts out its current dramas with the pilots it is in a good position to build in it largest market which currently accounts for 43% of sales.

Chief Executive Tony Tyler, seen here, said, ‘Sometime in the future we will be ordering more aircraft to supplement frequency and capacity on our regional network. I am confident that we will continue to grow our fleet.”

The Cathay Pacific Group, including Dragonair and Air Hong Kong Ltd., a cargo venture with DHL, operates a combined total of 175 planes, according to the statement. That will rise to 196 by 2012, including 147 painted in Cathay Pacific colors.

But Cathay Pacific does not always win. Its attempt to get a part of China Eastern Airlines did not happen as the previous story shows.