China's central government has intensified its pressure on Air China, China Eastern Airlines and China Southern Airlines to merge their cargo operations to compete with foreign carriers who dominate the market, the South China Morning Post reported, citing sources close to the matter. The news comes shortly after Payload Asia reported on an air cargo blueprint unveiled by government officials in Beijing in April aimed at securing a larger share of China's air cargo market by domestic players, … [Read more...] about China pushes for air cargo carrier merger
China Southern Airlines
China Southern may get US$220 million injection
China Southern Airlines may receive a US$220 million cash injection from the government, reported. Trading of the company's stock was halted in Hong Kong and Shanghai from today for no more than ten days while the airlines determined how to use the funds. According to a statement to the Shanghai Stock Exchange, the funds would be allocated by the Ministry of Finance and used to "support the development of the airline's core business." China Southern and parent China Southern Air Holding are … [Read more...] about China Southern may get US$220 million injection
China’s airlines return to profit in 3Q

China’s three major airlines all returned to profit in the third quarter thanks to stronger passenger demand and lower fuel prices. Air China saw its net profit for the July-September period reach US$125.3 million, compared to a loss of US$288.5 million in the same period of last year. China Eastern Airlines recorded a profit of US$3.4 million, following a US$341.2 million loss a year ago, while China Southern Airlines posted US$41.6 million, having lost US$121.5 million in the … [Read more...] about China’s airlines return to profit in 3Q
China's airlines return to profit in 3Q

China’s three major airlines all returned to profit in the third quarter thanks to stronger passenger demand and lower fuel prices. Air China saw its net profit for the July-September period reach US$125.3 million, compared to a loss of US$288.5 million in the same period of last year. China Eastern Airlines recorded a profit of US$3.4 million, following a US$341.2 million loss a year ago, while China Southern Airlines posted US$41.6 million, having lost US$121.5 million in the … [Read more...] about China's airlines return to profit in 3Q
China South, AF KLM cargo JV on hold
China Southern Airlines and Air France KLM have postponed their cargo joint venture, according to China Southern chairman Si Xianmin. "Based on the original plan, our cargo JV with AF KLM should have been launched in the first quarter. But we have to reconsider this plan after taking the current market situation into account," Si said. China Southern signed a framework agreement with AF KLM in the middle of last year to launch a cargo joint venture in which the Guangzhou-based carrier would hold … [Read more...] about China South, AF KLM cargo JV on hold
More bad news from China carriers
Air China and Shanghai Airlines joined China Southern Airlines and China Eastern Airlines in announcing that they expect to report losses for 2008. Both carriers cited declining market demand along with the impact of May's Sichuan earthquakes, stricter security measures surrounding the Beijing Olympics, the global financial crisis and the mid-year spike in fuel prices, followed by fuel hedge losses. Air China noted that it suffered a US$993.3 million loss resulting from a writedown in the value … [Read more...] about More bad news from China carriers
