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
air cargo
CHINA: BOC Aviation goes bargain hunting
BOC Aviation, the aircraft leasing arm of the Bank of China has said it has taken advantage of the economic downturn to expand its fleet, the South China Morning Post reported. BOC Aviation chief executive Robert Martin said the company has bought 40 planes since December, and had plans to invest US$10 billion in aircraft by 2012 to increase its fleet size to 196 from the current 96. Martin said the company would pursue further purchases in the third quarter, when an expected fall in industry … [Read more...] about CHINA: BOC Aviation goes bargain hunting
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: Sukhoi sells 24 Superjet 100s to Avialeasing
Russia’s Sukhoi Civil Aircraft and Avialeasing announced recently that they had signed a US$715 million contract for the delivery of 24 Sukhoi Superjet 100 airliners between 2011-2013. Currently, Sukhoi has 122 firm orders for Superjet100 airliners. … [Read more...] about EUROPE & CIS: Sukhoi sells 24 Superjet 100s to Avialeasing
