Cathay Pacific’s interim result does not make for encouraging reading. Operating profit margin dropped into negative territory in the first half of 2008, compared to a double-digit margin in the full year of 2007.

Cathay’s earnings report stated the big change in the company’s financial performance ‘was entirely due to the relentless rise in the cost of jet fuel in recent months’. Cathay’s non-fuel unit costs also rose 2.4%.

Overall, the airline’s cost base, including fuel, ballooned by a third, against a 22.6% revenue increase.

Cathay’s total fuel bill rose 94% in the first half year-on-year, due to reduced hedging benefits and the airline’s double-digit capacity increases.

Fuel now accounts for 45.3% of total costs.

Chairman Christopher Pratt said, ‘It is inevitable that fares for passengers and shippers will have to rise to reflect the new cost of operation.’
He added that ‘it is difficult to forecast with any degree of accuracy the extent to which these higher fares will reduce demand, but thus far it has remained robust.’
Source: Centre for Pacific Education

The number of passengers taking flights between Taiwan and China has been increasing since the service started in early July according to the island’s Civil Aeronautics Administration.

The regular weekend direct flights were introduced July 4. Flights were 89% full in the fourth week, up from 83% in the first week.

14,288 passengers took the flights by the fourth week, up from 12,056 in the first.

These figures are not, perhaps, as large as was hoped but allowance must be made for the Olympic effect.
Source: The Guardian London

New research shows China’s air safety record has improved dramatically in the last decade, alongside rapid industry growth and increased competition.

Findings published by Ascend, the world’s leading provider of information and consultancy to the global aerospace industry, show that air safety in China, as measured by the number of flights per fatal accident, is now some 800% better than in the late 1990s.

In the 10 years to 1998, China completed an average of approximately 390,000 flights per fatal accident.

Today, the country’s airlines complete some 3.25 million flights per fatal accident, which is close to the North American  average of 3.8 million flights per fatal accident.

During the ten years to date, the figure stands at an  average of one passenger fatality per 5 million passengers carried.

Paul Hayes, Director, Ascend said, ‘This data should dispel any lingering concerns people may have about the  safety of Chinese airlines.’

This significant improvement in safety has been achieved during the same time that Chinese airlines experienced a period of huge growth. In 2008 Chinese airlines are expected to make some 2.2 million flights and carry 210 passengers, 3.5 times more than 10 years ago.
Source: MarketWatch

Like a television soap opera Singapore Airlines is no longer courting China Eastern Airlines. Nor vice versa. I think. If true you will not be seeing those delectable Singapore Girls on China Eastern Airlines. But do not give up hope as yet. The game is possibly, although not probably, still in play.

The Chinese carrier has said would it not hold more talks with Singapore Airlines regarding sale of shares. In negotiations that is the sort of thing people say.

No reason was given which means everyone can give full rein to their imaginations.

Luo Zhuping, who is the board secretary of the airline, said it would not be fair to believe reporter speculation. He added that an official announcement would be forthcoming if a decision has been made. All of which probably sounded better before the translation.

He went on to state that he was disinclined to comment on the matter during the Beijing Olympics.

The story so far. In 2007, China Eastern said it would spin off 24% of its shares to Singapore Airlines. The airline is held by Temasek Holdings, the investment division of the Singaporean government.

That collapsed when China Eastern’s shareholders made it clear they preferred a deal with Air China. However, the deal between the state-run China National Aviation Holdings Co., the parent firm of Air China, and China Eastern failed to materialize.

Last week, news reports indicated that Singapore and China Eastern had decided to re-enter talks. A Singapore Airlines spokesperson said that the two sides were in touch about other mutual agreements.

Now comes the news it is off again.
Source: ASAP

Northeast China’s scenic forest and ski resort of Changbai Mountain has further opened to tourists with the operation of a new airport.

The first flight, by China Southern Airlines, took about 40 minutes from Changchun, capital of Jilin Province, to the Changbai Mountain Airport.

It is planned that the airport will also serve direct flights to Beijing, Shanghai, Dalian, Shenyang, Shenzhen and Guangzhou.

Changbai Mountain is in the border area between China and the Democratic People’s Republic of Korea. Skiing is possible from late October to June, and it has hosted international skiing events and tourism festivals.
Source: Window of China