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

Chinese Vice Premier Zeng Peiyan has called for more progress in the country’s research and development of jumbo aircraft.

He said the project to build jumbo jets would help China boost economic development, meet rising demand for air travel, make a great advancement in science and technology and strengthen national defense.

These remarks by Zeng Peiyan came during a discussion with a group of aeronautical experts at the Beijing University of Aeronautics and Astronautics.

He said that to build up an internationally competitive aeronautic industry, China should rely on independent innovation, train its own professionals and take in cutting-edge technology and products from foreign countries.

For the purposes of clarification a jumbo aircraft is generally considered an air-freighter with a take-off weight of more than 100 tons or an airliner with more than 150 seats.

Liu Daxiang, an expert with the China Aviation Industry Corporation I, the country’s leading aircraft maker, said earlier this year that the country will be capable of making jumbo jets by 2020.

Currently, only the United States, Russia, France, Germany, Britain and Spain have the ability to build jumbo aircraft, with Boeing and Airbus leading the way.
Source: China View

China will be the largest market for new commercial airplanes in the next 20 years, according to Boeing’s latest market forecast. Boeing said China will acquire 3,400 new planes worth US$340 billion in that time. In addition, China will continue to lead all domestic air travel markets with a passenger-kilometer growth rate of 8.8%.

Following the anticipated surge in passenger traffic for the 2008 Beijing Olympic Games, the China domestic market will grow nearly fivefold by 2026 to become slightly larger than today’s intra-North American market.

With the continued high rate of growth for China air travel and air cargo markets, China’s fleet will nearly quadruple to 4,460 aircraft by the end of the forecast period in 2026.

Single-aisle airplanes such as the Boeing 737 will be the largest category with total new airplane deliveries reaching 2,200. Intermediate twin-aisles such as the Boeing 787 Dreamliner (mocked-up interior seen here) and 777 will see approximately 750 airplane deliveries. When combined, the single-aisle and intermediate twin-aisle market will make up 90% of China’s total delivery dollars.
Source: China Civil Aviation Report

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.