Air China has agreed to buy twenty Airbus 330-Series aircraft from Airbus at a cost of around $3.82 billion. The airline said the aggregate amount for the acquisition of Airbus aircraft is payable by cash in instalments, and it expects to take delivery of the Airbus aircraft in stages from early 2011-2014.

Air China said the transaction will be funded through cash generated from the its business operations, commercial bank loans and other debt instruments.

It said it does not expect the Airbus transaction to have any material impact on its cash-flow position or its business operations.

All of this is predicated on the price of oil remaining relatively stable.

All forecasts on aviation growth have to be viewed bearing this factor in mind.

Worldwide there is a current trend to trim services, to cut unprofitable routes. China is not immune from this potential major problem.
Source: Forbes

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

Eva Airways, Taiwan’s second-largest carrier, plans to increase direct flights to the mainland and seeks to work with Chinese airlines as cross-Straits business ties improve.

Eva spokesman Nieh Kuo-wei said, ‘We will definitely want to partner other airlines, and everyone agrees there are not enough direct flights.’

Eva said it will initially have seven direct flights to the mainland each week, from both Taoyuan International Airport and Taipei’s Songshan domestic airport, but will not trim the number of flights to Hong Kong.

Eva has signed an agreement with China Eastern Airlines to collaborate on ticket issues and luggage handling. China Eastern also wants to fly direct to Taiwan.

Cao Jianxiong, China Eastern’s general manager, said, ‘We may lose money in the beginning for some direct flights, but we’re not looking at this development just from a business standpoint.’

Other mainland airlines assigned by regulators to fly direct to Taiwan include China Southern Airlines, Air China, Hainan Airlines and Xiamen Airlines.
Source: Reuters

Delta Air Lines is cutting back its Atlanta-Shanghai flight to five times a week for the winter instead of daily, in what it calls a move to better match capacity to ‘reduced market demand.’

The airline launched the daily Atlanta-Shanghai flights March 30 with much fanfare, after receiving approval for the flights last September.

The change to five days a week goes into effect November 7. It is stated the service will return to daily in May 2009 for the summer. Possibly that statement is made with crossed fingers.

Delta spokesman Kent Landers, said, ‘As a new carrier in China, we learn more about the demand patterns and the profile of the market. Delta remains committed to the China market and serving that market from Atlanta.’

He said the airline makes adjustments ‘to make sure we have a year-round profitable operation.’

Asked if the soaring cost of fuel played a role in the decision, Kent Landers said, ‘Fuel has an impact on the entire network and we watch that very closely. But this is a situation where we’re matching the right profile to the market and especially what we’re expecting in the winter.’

It sounds like a PR at bay.

Delta received U.S. Department of Transportation approval for the change and has already removed the flights from its inventory. No mention was made of the rising cost of fuel and the fact that if it keeps rising those flights will never be reinstated.

The price of a barrel of oil has doubled in the last year.
Sources: AJC and BusinessWeek

In most of the countries of Asia — China no exception — the phrase ‘carry-on restriction’ is a loose term subject to local interpretation, more honoured in the breach than the observance.

On flights to Manila from Hong Kong, for example, Filipina amahs have struggled on board with loads that would have given pause to Arnold Schwarznegger in his prime. Now it is all over.

China takes a lead here although it is pretty much true of all Asian countries. On China domestic airlines the current restrictions, which are implemented in real life are:

• Luggage must be smaller than 20×40x55cm.
• Carry-on weight limit is 5kg
• First-class passengers are allowed 2 bags, business and economy 1 bag
• No liquids of any kind or volume are allowed
• No lighters or matches
• No dangerous goods.

Many passengers, the writer being no exception, welcome the enforcement of these rules with great anticipatory delight.
Source: About.com