China has drafted a long-term plan for development of air cargo, which will require the building of 97 new airports, consolidation of smaller airports and upgrading of certain key airports by the year 2020. The entire project will cost the government a massive investment of $64 billion.

According to the new Ministry of Transport, under the plan, 97 feeder-line airports will be built across the country, the main air hubs will be upgraded, and airport clusters will be set up in the northern, eastern, central, southern, southwestern and northwestern parts of the country.

The ministry, which was formed on March 24, encompasses all the state entities related to road, sea and air traffic.

It evolved from the former Ministry of Communications and the General Administration of the Civil Aviation of China.

By the end of 2006, the Chinese mainland had 147 airports with 45 of them serving both military and civilian traffic.

The program calls for the forming of airport clusters according to their function — international, domestic or feeder airports — and integration of large, small and medium-sized airports. The illustrations are Shanghai Hongqiao at the top and Hangzhou seen from the air.
Source: China Daily

Air New Zealand is worried about New Zealand’s low profile in Beijing, less than two months before it’s inaugural flight to the Chinese capital.

Darline Liu, vacation manager of China’s first online travel agency, Ctrip, said more effort and funding needed to be put into marketing New Zealand in China.

She said, ‘I cannot hear any noise about New Zealand in Beijing.’

Air New Zealand’s international group general manager, Ed Sims, said the comments highlighted fundamental problems. ‘That concerns me hugely.’

Air New Zealand had spent more than $10 million in the Chinese market to promote New Zealand and this simply does not seem to have worked.

Daline Liu said the New Zealand Government’s decision to boost Tourism New Zealand’s Chinese marketing budget by $7 million over two years was not enough.

Too many Chinese did not know about New Zealand as a destination.

She said, ‘Because Chinese people don’t know much about New Zealand, New Zealand should pay much more money to promote the country.’

Education for travel agents was a key link in attracting more Chinese tourists. She said, ‘They don’t know about New Zealand, so they cannot tell people about New Zealand.’

In the past 10 years China has accelerated into the top five markets for New Zealand, and Air New Zealand has expanded capacity from three flights a week to five since starting its Shanghai service.

Ed Sims said flying celebrities out to New Zealand so they would blog about the experience and performing traffic-stopping stunts in Shanghai were more effective uses of cash than traditional advertising.

He said, ‘You have to think who you want to reach and how are you going to reach them.’ As this New Zealand rugby player is demonstrating here.

Personally I think they should hammer away at the scenic attractions and skiing. The writer has written a book on New Zealand and visited every town. He learned to ski near Queenstown. He considers it all magic.
Source: Stuff

China Southern Airlines expects to open 7-8 new international routes this year, expanding on a plan that saw it open 10 new foreign destinations in 2007. Chairman Liu Shaoyang said this year’s routes will originate mostly in Guangzhou and serve neighboring countries in Southeast Asia, in addition to a London flight scheduled to start in the fourth quarter.

It aims to increase the percentage of its revenue derived from international operations from the current 19% to 25%-30% in the next five years while expanding its fleet from 332 aircraft at Dec. 31, 2007, to 400 by 2010.

However, Chairman Liu Shaoyang said, domestic consolidation likely is necessary to maximize international competitiveness. He said Beijing is considering a reorganization of the domestic airline industry but a decision will not be made this year as carriers concentrate on August’s Olympic Games.

Last month he proposed a China Air Holding Co. that would hold stakes in China Southern, Air China and China Eastern Airlines and also would ‘be able to make investments in foreign carriers as well as conduct internal integration.’
Source:

The prospect of weekend ‘charter services’ from July 8 across the Taiwan Strait, as pledged by Taiwan’s President-elect, Ma Ying-jeou, could kick-start the process of opening one of North Asia’s biggest air travel markets. Currently, non-stop services are only permitted in the four major holiday periods on the Chinese calendar.

Daily charter services could be introduced this Northern Winter and be replaced as scheduled services in 2009, under Ma’s proposal.

Airlines on both sides are moving quickly to take advantage of the opportunity.Air China, for example, has applied to establish a representative office in Taiwan after Ma Ying-jeou is sworn in as President on 20-May-08.

EVA Air (shown in our illustration) forecasts a 50% increase in passenger numbers between Taiwan and the Mainland after the first stage of expanding the charter operations.

More than 1.5 million Taiwanese live on the mainland and are expected to travel more, if the inconvenience and added expense of a transit at a third point are removed. Furthermore, the Ma government proposes increasing ceilings on Mainland tourists, to help stimulate the island’s economy. Mr Ma plans to allow 3,000 Mainland arrivals per day to Taiwan from Jul-08, rising to 10,000 by 2012.

But the expansion of cross-Straits services is a serious looming threat for airports in Macau and Hong Kong and the carriers based there that have built large revenues from transfer services between Taiwan and the Mainland.
In terms of seat capacity, Cathay Pacific is the most exposed. Cathay accounts for almost one quarter of seats across the Taiwan Strait (from Hong Kong and Macau) at present, or around 38% including Dragonair. It will have to seriously consider how it will make good that shortfall.

Source: Centre for Aviation

Hainan Airlines, China’s fourth-largest air carrier, saw its unaudited net profit for 2007 jumped at least 300% from 2006.

In January, the airline estimated the rise in profit at 200% but that was being a tad conservative.

China’s airlines were buoyed last year by booming domestic demand for leisure and business travel, as well as the benefits of a rising yuan. Air China posted a 19% rise in second-half profit.

Hainan Airlines said details of its 2007 results would be published in its annual report, which will come out this weekend.

The airline posted a net profit of RMB181.6 million ($25.64 million) in 2006.
Source: Reuters