China Eastern Airlines (CEA) has proposed to takeover Shanghai Airlines through a share swap, according to a Dow Jones report citing an un-named source. If successful, the move would finalise what has been a long drawn-out negotiation over how best to merge the two struggling airlines and is part of Beijing’s plan to consolidate the aviation industry, in particular the airlines, which are plagued by operational inefficiencies and debilitating price wars due to the plethora of small … [Read more...] about CHINA: China Eastern take over of Shanghai Air nearing
Carriers
CHINA: Shenzhen Air may seek stock exchange listing
Shenzhen Airlines may seek a full or partial listing in Hong Kong or Shanghai to provide more capital for expansion, the South China Morning Post reported. “We have plans to list the company wholly or partially and will get it done quickly if it is needed,†chief executive Li Kun said. Li said he expected the airline to be profitable this year. Shenzhen Airlines posted a profit of more than US$29 million for the first four months of the year, following a US$4.09 million profit in … [Read more...] about CHINA: Shenzhen Air may seek stock exchange listing
CHINA: Air China to increase cross-strait flights
Air China announced that it will increase the number of direct flights it offers between the mainland and Taiwan, according to a South China Morning Post report. China’s secondlargest airline said it will offer 27 cross-strait flights a week as early as August. The announcement follows last month’s expanded air-service pact, signed by Beijing and Taipei, to increase the number of flights to 270 a week from 108 in an effort to promote crossstrait tourism and business. Air … [Read more...] about CHINA: Air China to increase cross-strait flights
Defying the logic of the times
Logic would surely dictate that when you are in the middle of an unprecedented industry downturn, it’s not a particularly good idea to start up a new airline and pump more capacity into the very market you are pulling back from. But that is exactly what took place in an expansive new hangar in a historic German city one sunny Friday inJune. Donald Urquhart has the story from Leipzig. In a bold but largely unavoidable move, a new cargo airline has taken flight in what is arguably … [Read more...] about Defying the logic of the times
EUROPE & CIS: Coyne adds B747-400F Caspian capacity via Jade
Coyne Airways has signed an agreement with Jade Cargo for further B747-400 capacity each Wednesday from Frankfurt to its hub in the Georgian capital of Tbilisi. The second weekly B747-400 freighter service to its Tbilisi hub with effect from 1 July is in addition to its existing flight every Monday from London Stansted and Cologne to Tbilisi. Coyne will offer trucking connections throughout continental Europe as well as the UK, allowing a Tuesday evening close-out in most cases. The Thursday … [Read more...] about EUROPE & CIS: Coyne adds B747-400F Caspian capacity via Jade
EUROPE & CIS: Aeroflot Cargo put under bankruptcy by parent
The Board of Directors of Aeroflot – Russian Airlines has accepted a proposal of the passenger carrier’s management to initiate bankruptcy procedures against Aeroflot-Cargo, according to Russian media reports. The decision was apparently based on the fact that Aeroflot Cargo, cut loose as a separate entity nearly two years ago has nearly five billion Russian rubles (€115 million) in outstanding debts to Aeroflot – Russian Airlines and given the unfavourable … [Read more...] about EUROPE & CIS: Aeroflot Cargo put under bankruptcy by parent