Kun Peng Airlines has ordered five Embraer 290 jets for $187.5 million. The new aircraft will be configured with 98 seats in a dual-class layout, and the first delivery is scheduled for 2008.

Headquartered in Xi’an City, Kun Peng Airlines is a joint venture between China’s Shenzhen Airline and the Mesa Air Group from the United States, with the Chinese company holding the larger share.

Since its start-up in September 2007, Kun Peng has managed to get more than 20 routes in operation.

The aircraft construction company itself is doing well with 847 firm orders and 827 options from more than 45 customers in 30 countries. It already has 1.5 million flight hours.

In searching for Kun Peng Airlines these details of its pay package for expatriate pilots on two year contracts came to light:

* Domicile: Beijing, China
* Base pay: $5700 per month (net)
* Housing allowance: $1200 per month
* Contract completion bonus (payable upon contract completion) $3000 for first year $6000 for second year
* Worldwide Medical/Dental insurance
* 9 days guaranteed off per month
* 30 days personal leave a year

Source: MarketWatch and Forums Jet.Careers

Mainland China-based airlines carried 77.61 million passengers in the first five months of the year, climbing +7.3% over the same period last year. This according to the General Administration of Civil Aviation of China (CAAC).

Domestic passenger numbers hit 71.69 million, up 7.6% year-on-year, while international passengers increased by 4.8% to 6.6 million.

In May, passenger traffic dipped -1.1% year-on-year to 15.36 million.

The average passenger load factor in May was 70.9%, down by 2.8 percentage points from a year earlier.

The five-month load factor was up 0.7 percentage points at 65.2%.
Source: The Moodie Report

Chinese airlines said the current increase in jet fuel surcharges was not expected to bring much benefit for them.

CAAC has allowed Chinese airlines to increase surcharges to:

RMB80 (about $11.66) from RMB60 for domestic flights of 800 km or less.
RMB150 (about $22) for domestic flights longer than 800 km.

This was the fourth time that the Chinese aviation regulator has raised surcharges since August, 2005, and the second time within eight months.

Luo Zhuping, a director of China Eastern, one of the country’s major carriers, was quoted by the Guangzhou Daily as saying, ‘There is not sufficient air traffic demand now. Despite the rise in fuel surcharges, airlines will have to make more discounts in order to compete for passengers.’

Wen Shuang, of a tourism company based in South China’s Guangdong Province, said the increase in jet fuel surcharges was not expected to cause notable fluctuations to air ticket prices for tourists. He said, ‘The fuel surcharges rise, but air tickets are declining.‘

Liu Shaoyong, chairman of China Southern Airlines, noted that jet fuel costs account for more than 40% of China Southern’s total cost.

The airlines’ operation cost increased by RMB15 billion a year because of oil price rises.
Source: China View

Air Canada has slashed its Vancouver-to-Beijing/Shanghai service from 14 flights a week to seven as the airline cuts costs in response to record fuel prices. From October 26, it will fly from Vancouver to Beijing three times a week and from Vancouver to Shanghai four times. It currently offers a daily service to both Chinese cities.

Canada is still trying to nail down an Approved Destination Status deal with China, which would allow more Chinese residents to travel to this country. Even without that status, China remains a vital market for British Columbia

Last year more than 91,000 Chinese residents visited thereputting it ahead of other international markets like Germany, Taiwan and Hong Kong. The average Chinese visitor in 2006 spent more than $2,800.

The airline announced last month it would cut its system capacity by 7% and shed up to 2,000 jobs to become more efficient as fuel costs skyrocket.

University of B.C. associate professor Marc-David Seidel doubts the cutbacks will have a huge impact on travel between Canada and China, noting Air China and China Eastern Airlines still offer regular services from Vancouver to Beijing and Shanghai.
Source: The Vancouver Sun

The first China-made regional aircraft Modem Ark (MA) 600 was completed this week.

Lin Zuomin, head of the preparation group for the China Aviation Industry Group, said that research and development of the next model, the 70-seat MA700, was already underway.

The 60-seat MA600, an improved version of the MA60, is 300 kilograms lighter, making it 40% more fuel efficient than earlier turbofan-powered aircraft.

Lin Zuomin said that within five years, China would be able to deliver its own turbo-prop regional jet series of the MA60, MA600, MA700 each catering to different usage.

The MA600 is scheduled to make its maiden flight in September.

Beijing Youth Daily has reported that 10 to 15 MA600s will be manufactured in the next two years. Up to 30 a year could be made according to market demand. Mass production will start in late 2009.

The China Aerospace Industry Research Center forecasts 5,300 to 5,500 regional aircraft will be needed in the next 20 years, of which 1,900 will be turboprop aircraft.

Turbo propeller regional aircraft are commonly used on short and medium range flights.
Source: People’s Daily Online