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

According to a report issued by MasterCard Worldwide the Chinese mainland is expected to record 21.6 million outbound tourists in the first half of 2008 with a year-on-year increase of 12.4%.

The report attributed the booming outbound travel market to the increasing number of middle-class Chinese.

It said the number of China’s middle-class families would rise to 100 million in 2016 from 35 million in 2006 in metropolises, such as Beijing, Shanghai and Guangzhou.

‘This, combined with the availability of low cost travel options, means Chinese travelers form a very influential group which is expected to continue to significantly shape trends in the travel business in 2008 and in years to come,’ said Dr. Hedrick Wong, economic advisor to MasterCard Worldwide in Asia Pacific.

China’s Ministry of Tourism in early January stated it recorded 40.95 million outbound tourists last year.

A joint on-line survey by market information provider Nielson and Ctrip.com, a domestic tourism website, said that about 11% of Chinese netizens whose family monthly income tops RMB8,000 ($1,095) want to travel abroad.
Source: China View

According to the General Administration of Civil Aviation of China (CAAC) an estimated 22 million passengers traveled by air during the Spring Festival, 10% more than the same period a year ago.

The seven-day Spring Festival holiday, China’s traditional lunar new year, is the busiest time for transport companies as many Chinese go back to their hometowns for family reunions.

The administration said the air traffic in major airports in Beijing, Shanghai, Guangzhou, Shenzhen, Chengdu and Kunming was strictly controlled to ensure smooth and safe flights.

The new third terminal at the Beijing Capital International Airport, which aims to enhance transport capacity greatly, comes into operation this month.

The CAAC is firm in stating it will stop taking applications for the founding of new airlines before 2010.

Li Jiaxiang, the CAAC’s acting director, said the administration would strictly examine the applications it had received and approve the establishment of no more than three new airlines each year.

He said, mincing no words, that China’s airlines need to brush up their management, attract more talent to the industry and upgrade infrastructure.

China now has more than 40 domestic airline companies, and less than 10 are state-owned.
Source: China View

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.