Chinese Airlines news

[S V Choong 4]

While checking China Southern's schedule, I came across this letter:

 

http://www.csair.com/en/download/2007mfj.jpg

 

4x 777-200A up for grabs. Could this be the first airline to phase out all 777s?

 

China Southern is also looking to get rid of their A300-600Rs too.

[Y. J. Foo 0]

Could this be the first airline to phase out all 777s?

 

I think RG did it before (though it was forced by financial situation and not voluntary withdrawal.)

 

Maybe they want to replace it with newer, longer-range variants?

[Nick C 0]

CZ has 6 772Bs in addition to the 4 772As.

[Pieter C. 5]

Air China Passenger Numbers Down For 3rd Month

 

August 18, 2008

Air China's passenger volume fell for a third straight month in July, hit in part by strict airport safety checks in the run-up to the Beijing Olympic Games.

 

Air China, the country's flag carrier, also saw a 58.05 percent year-on-year jump in its average jet fuel purchase price last month, it said in a statement.

 

The carrier handled 2.98 million passengers in July, down 6.8 percent from a year earlier. Passenger volume on international routes fell 19.4 percent to 435,900, with volume on domestic service down 3.5 percent to 2.48 million, it said.

 

A devastating earthquake in southwest China in May, which led to the cancellation of conferences and other events, was also blamed for weak passenger traffic over the past three months, which broke the industry's steady record of growth in China's economic boom.

 

China Eastern Airlines and China Southern Airlines, the other two of China's three major carriers, have yet to release July traffic data. Both reported a slip in passenger volume in May and June.

 

Industry executives have said monthly air traffic data was likely to rebound in September, when airport security checks return to normal.

 

Air China said it purchased 254,000 tonnes of jet fuel in July at 9,075 yuan (USD$1,321) per tonne.

 

To help mitigate the impact of higher fuel costs, Air China and other Chinese carriers increased jet fuel surcharges on domestic routes by 50 percent from July 1.

 

They also raised the surcharge on long-haul international flights by 37.5 percent to 1,100 yuan effective on July 10, while the surcharge on short to medium-haul flights rose 31 percent to 550 yuan.

 

(Reuters)

 

China Southern H1 Net Jumps, Cuts Traffic Outlook

 

August 19, 2008

China Southern Airlines posted a jump in first-half earnings but cut its full-year passenger and freight targets because of weakening air traffic demand.

 

From January to June, net profit jumped 368 percent to CNY838 million yuan (USD$122 million) under Chinese accounting standards, helped by rising passenger and cargo volume and a 134 percent surge in non-operating income to CNY616 million.

 

Sales rose 8.9 percent to CNY27.45 billion, with operating costs up 15.1 percent to CNY25.47 billion.

 

Under international accounting standards, net profit climbed to CNY847 million from CNY168 million, while total operating revenue rose to CNY26.78 billion from CNY24.56 billion.

 

In a statement, China Southern chairman Liu Shaoyong warned that the airline industry faced a "long, severe winter" because of weakening traffic demand, high oil prices and increasing competition.

 

He pledged to adjust the carrier's capacity and route network and cut its operating costs in the second half.

 

China Southern said in July it would slash operating costs by CNY1.3 billion this year, including a cut of CNY800 million in planned investment on infrastructure projects.

 

For the full year, China Southern cut its passenger volume target by 3.2 percent to 59.78 million passengers, and reduced its target for freight volume by 8.5 percent to 902,300 tonnes.

 

It now expects an average passenger load factor in 2008 of 74.0 percent in 2008, down 0.5 percentage point from last year's number. Previously, it had predicted a 0.6 percentage point rise in the load factor to 75.1 percent this year.

 

(Reuters)

 

Shanghai Air Returns To Black In First Half

 

August 19, 2008

Chinese regional carrier Shanghai Airlines said on Tuesday that it returned to the the black in the first half of this year, helped by rising air traffic and a 154 percent jump in investment returns.

 

From January to June, the carrier reported a net profit of CNY23.4 million yuan (USD$3.4 million) compared with a net loss of CNY134.5 million a year earlier.

 

Sales rose 26 percent to CNY7.03 billion, while unspecified investment returns surged to CNY10.1 million from CNY4.0 million. Operating costs rose 22.8 percent to CNY7.12 billion.

 

However, monthly passenger volumes in the Chinese airline industry started to fall from a year earlier in May because of a sluggish global economy and a major earthquake in the country's southwest.

 

Shanghai Airlines chairman Zhou Chi said in June that it was hard to estimate the carrier's full-year results given uncertainty over the traffic outlook.

 

(Reuters)

 

[S V Choong 4]

Thanks for creating this post Pieter.

 

I am searching for Chinese airlines route map and flight time... CZ's website is a bit chaotic and unhelpful. Anyone know where to go to check the flight schedule of China Southern, Air China and etc.?

[Pieter C. 5]

Hainan Air Sees H1 Net Up Over 50 Percent

 

August 20, 2008

China's Hainan Airlines said on Wednesday it expected its net profit to jump more than 50 percent in the first half of this year from a year earlier, helped largely by appreciation of the yuan.

 

The estimate for the first half was based on unaudited figures.

 

Listed Chinese companies are required to issue preliminary estimates if they expect earnings to rise or fall by more than 50 percent.

 

Hainan Airlines booked a net profit of CNY189.71 million yuan (USD$27.63 million) in the first six month of 2007.

 

It said detailed first-half figures would be released in its interim report scheduled for August 30.

 

(Reuters)

 

[Pieter C. 5]

Air China, China Eastern Profit Hit As Traffic Ebbs

 

August 27, 2008

Air China's first-half profit fell while China Eastern Airlines remained in the red as the carriers were pinched by rising fuel costs and lower passenger volume.

 

The airlines, two of the country's three largest, warned that the rest of the year would remain challenging for the industry.

 

"High oil prices and global economic softness will undoubtedly continue to deeply affect the airline industry for the remaining part of the year and we believe we might also be impacted beyond 2008," Air China Chairman Kong Dong said in a statement.

 

For January to June, Air China's net profit fell 20.07 percent to CNY1.24 billion yuan (USD$181 million), under international accounting standards, while China Eastern's net loss was CNY212.50 million, narrower than last year's CNY305.62 million.

 

China Eastern's operating costs rose 13 percent during the period while Air China's were up 15 percent, according to domestic accounting figures.

 

China's big airlines have also been hit by an unexpected decline in passenger volume, due in large part to May's catastrophic earthquake in southwest China, marking a reversal of the industry's steady growth in the past few years.

 

A dull global economy and strict airport safety checks in the run-up to the Beijing Olympics, which ended over the weekend, also kept many passengers from taking to the skies.

 

Air China carried 17.6 million passengers in the first half, down 1.49 percent year-on-year, while China Eastern saw a 1.20 percent drop to 18.11 million.

 

Both airlines posted further declines in July but Air China's Kong said that, with the Olympic Games over, traffic should recover gradually.

 

The pain has been softened by a surge in the yuan, cutting the value of dollar-denominated debt for aircraft purchases.

 

China's three biggest airlines, including China Southern Airlines, booked combined foreign exchange gains of CNY6.41 billion in the first half, under domestic standards, nearly triple their total net profit of CNY2.16 billion in the period, as the yuan appreciated 6.6 percent.

 

Air China's Kong, whose parent company sought to forge ties with China Eastern but was rebuffed early this year, added that the industry's troubles would spur consolidation.

 

"A global economic downturn and high oil prices have expedited the global trend of painful industry consolidation," he said. "This, however, may present opportunities to stronger industry players with a strong operating track record and a solid balance sheet."

 

A deal to sell a 24 percent stake in China Eastern to Singapore Airlines expired this month, but the Shanghai-based carrier still hopes to clinch a deal with Singapore Air, a source familiar with the situation has said, as it urgently needs foreign expertise to bolster its operations.

 

(Reuters)

 

[Pieter C. 5]

Air China, China Southern August Traffic Down

 

September 16, 2008

Air China and China Southern Airlines carried fewer passengers in August than a year earlier as strict security measures due to the Beijing Olympics deterred travel, the official Shanghai Securities News reported on Tuesday.

 

Major Chinese airlines began posting year-on-year declines in passenger volume in May, hit by a devastating earthquake in southwest China and security steps ahead of the August Games, after a steady record of growth as China's booming economy boosted leisure and business travel.

 

Although many industry executives have said air traffic was likely to recover after the Games and the Paralympic Games, which ended last month, the Shanghai Securities News also cited a weaker tone in the overall economy as a factor weighing on the sector this year.

 

Air China's passenger volume in August slumped 16.6 percent in August from a year earlier to 2.77 million, while China Southern posted a 16.2 percent drop to 4.98 million, the newspaper said.

 

It cited analysts as saying that visa restrictions and other security measures in the months leading up to the Games were the main factor behind a drop in the carriers' international traffic.

 

Domestic travel on China's three major carriers, which also include China Eastern Airlines, had been affected as well by a severe earthquake in Sichuan province in May, which led to the cancellation of conferences and other events.

 

(Reuters)

 

[Pieter C. 5]

Air China Postpones China Eastern Takeover

 

September 18, 2008

Air China has postponed plans to buy rival China Eastern Airlines because the aviation industry is struggling with falling demand for air travel amid financial turmoil in the United States.

 

"Although oil prices have fallen below USD$100 (a barrel), uncertainty grows on demand for air travel," the South China Morning Post quoted Kong Dong, chairman of the Chinese flag carrier as saying.

 

Kong said his priority was to weather the drop in demand by strengthening Air China's internal controls rather than growing through mergers and acquisitions, the strategy pursued by his predecessor, Li Jiaxiang.

 

Passenger traffic at China's three major airlines, Air China, China Eastern and China Southern Airlines, has declined since May as a devastating earthquake in southwest China and strict security measures relating to the Beijing Olympics deterred travel.

 

Kong, who was appointed chairman of Air China in April, also said commercial considerations should give way to government decisions when it came to industry consolidation, the paper reported on Thursday.

 

Earlier this year shareholders of China Eastern, including Air China's parent, vetoed a USD$920 million offer by Singapore Airlines for a 24 percent stake in the Shanghai-based carrier.

 

China Eastern, which rejected a counter-offer by the parent of Air China, had said it would not give up its search for a strategic investor.

 

(Reuters)

 

[S V Choong 4]

http://www.airliners.net/photo/Air-China/A...-243/1399643/L/

 

Is this CA's new livery or another special livery?

[Seth K 3]

Air China needs a makeover to attract customers, now that they have new mega airport, I wish they could upgrade their fleet as well. Only been on their 767, so there's nth much to comment there, but I'm sure the same layout for their older planes, which is BAD.

Edited September 20, 2008 by Seth K

[S V Choong 4]

Air China needs a makeover to attract customers, now that they have new mega airport, I wish they could upgrade their fleet as well. Only been on their 767, so there's nth much to comment there, but I'm sure the same layout for their older planes, which is BAD.

 

I agree Seth. Being a flag carrier of China, CA is also a state owned airline. They should really improve their livery, service and inflight product.

 

At the moment, they are still a three star airlines.

[Pieter C. 5]

Turbulence Injures 11 On China Air Bali Flight

 

September 22, 2008

At least 11 people were hurt, some suffering broken necks and other fractures, after a plane operated by China Airlines hit turbulence near the Indonesian island of Bali at the weekend, an official said.

 

The Boeing 747-400 was hit by turbulence about 30 minutes before landing at Bali's international airport in Denpasar, airport spokesman M. Dimyati said.

 

The plane, carrying 338 passengers and 19 crew, was travelling from Taipei to the resort island when the incident happened.

 

A senior official at Indonesia's health ministry in Jakarta said the injuries included broken necks and other fractures.

 

"At least 11 people were injured including six who are seriously injured," Rustam Pakaya, head of the health ministry's crisis center, said.

 

The airport spokesman said the injured had been taken to Sanglah Hospital in Denpasar.

 

(Reuters)

 

[Pieter C. 5]

China Eastern Predicts Large Nine Month Loss

 

October 11, 2008

China Eastern Airlines, one of the country's three biggest carriers, said on Saturday that it expected to post a "relatively large" net loss for the first nine months of this year.

 

In a brief statement to the Shanghai Stock Exchange, the airline blamed a steep fall in traffic demand in the third quarter, as well as an increase in domestic aviation fuel prices.

 

In the first nine months of last year, China Eastern made a net profit of CNY1.04 billion yuan (USD$152 million).

 

A senior China Eastern executive said earlier in the week that China's air travel market was likely to remain soft as the global economy faltered, and the market might not rebound until the second half of next year.

 

In a brief statement to the Shanghai Stock Exchange, the airline blamed a steep fall in traffic demand in the third quarter, as well as an increase in domestic aviation fuel prices.

 

In the first nine months of last year, China Eastern made a net profit of CNY1.04 billion yuan (USD$152 million).

 

A senior China Eastern executive said earlier in the week that China's air travel market was likely to remain soft as the global economy faltered, and the market might not rebound until the second half of next year.

 

(Reuters)

 

[Pieter C. 5]

China Airline Sector Seen Posting Loss In 2008

 

October 16, 2008

China's airline industry will most likely end up in the red in 2008 as it confronts a slowing domestic economy and the prospects of a global recession, industry executives and analysts said on Thursday.

 

Flag carrier Air China and Shanghai-based China Eastern Airlines both warned in recent days they would post losses for the first nine months of the year, blaming high fuel costs and the weak economy.

 

"Traffic did not pick up after the Olympics as we had previously expected," said a senior executive with China Eastern, who asked not to be identified.

 

"The situation improved a bit during the week-long national holiday in October but the outlook is still murky, given the faltering global economy.

 

"There is little doubt that the whole industry will make losses now that the flag carrier has also issued a profit warning," he said.

 

A sharp slowdown in the appreciation of the yuan since mid-July is also set to undermine earnings in the second half of the year.

 

The Chinese currency's rise allowed China's top three airlines to book a combined foreign exchange gain of CNY6.41 billion yuan (USD$938.5 million) in the first half.

 

In the offshore non-deliverable forwards market, one-year dollar/yuan NDFs began implying 12-month yuan depreciation against the dollar last month for the first time in five years.

 

"That's really bad news for airlines which have a lot of dollar-denominated debt from aircraft orders," said Ma Ying, an analyst with Haitong Securities.

 

Air China's announcement late on Wednesday that it expected a nine-month loss sent its shares tumbling on Thursday, with its Hong Kong-listed shares dropping 13.75 percent to HKD$2.76 by late afternoon trade, while its Shanghai-listed shares fell their 10 percent daily limit to CNY4.67 yuan.

 

The declines exceeded steep drops in the markets' benchmark indexes as worries over the global economy sparked a broad sell-off in shares.

 

"It's really surprising. I thought at least Air China could manage to make a tiny profit during the period, but the situation is worse than I expected," said Li Lei, an industry analyst with China Securities.

 

Air China has tended to outperform its domestic peers in difficult times in the past, including the SARS crisis in 2003 which pushed the industry into the red, but its more extensive long-haul routes have left it more vulnerable than its local peers to the current global financial crisis, analysts said.

 

Li had previously projected a combined profit of CNY1 billion in 2008 for China's airline industry, but said he would have to change that forecast to a loss if the travel market stays weak in the fourth quarter.

 

Passenger volume at China's three major carriers -- Air China, China Eastern and China Southern Airlines -- started to show year-on-year declines in May, marking a reversal for an industry that had seen steady growth in recent years.

 

Their business was also hurt by the devastating Sichuan earthquake in southwestern China in May, as well as travel restrictions and stepped-up airport safety checks that deterred air travel before and during the Beijing Olympics in August, which dealt a particularly severe blow to Beijing-based Air China.

 

(Reuters)

 

[Pieter C. 5]

China Will Need 3,710 Planes Over 20 Years

 

October 29, 2008

Boeing said on Wednesday that China will need 3,710 new commercial planes worth USD$390 billion over the next 20 years, maintaining its position as the world's fastest growing aviation market.

 

China will account for 41 percent of the Asia-Pacific region's commercial plane demand, Randy Tinseth, a Boeing vice president for marketing, said in a statement.

 

The mainland's air travel and air cargo market growth will more than triple the country's fleet to 4,560 planes by 2027, about the number of planes flying in Europe today, according to the statement.

 

The company said global demand for new commercial planes over the next two decades will total USD$3.2 trillion, or about 29,400 aircraft.

 

Single-aisle and intermediate twin-aisle planes will make up 91 percent of China's total demand in terms of value, while only a limited number of large planes (747-size and larger) will be needed.

 

China is the focus for Boeing and Airbus, which has equally rosy forecasts for the mainland market as its booming economy demands more long-haul planes.

 

(Reuters)

 

[Pieter C. 5]

China Southern Air To Invest In Liaoning Airport

 

October 29, 2008

China Southern Airlines, the country's largest carrier by fleet size, said on Wednesday it will invest more than CNY10 billion yuan (USD$1.46 billion) in Liaoning Airport Group to help fund its expansion.

 

China Southern said in a statement its investment would also include an equity stake, although it did not specify the size.

 

Liaoning Airport is the state parent of Shenyang Airport, a major airport in northeast China.

 

Shenyang airport's expansion plan includes a third terminal to be opened in the next three to five years that will allow it to handle up to eight new long-haul routes, the statement said.

 

Other big airline and airport groups, including HNA, the parent of Hainan Airlines, have taken stakes in smaller peers to cement ties and, in some cases, to fend off foreign investors. HNA has taken stakes or assisted operations at more than a dozen airports in China.

 

(Reuters)

 

[Pieter C. 5]

Eva Airways To Start Direct China Flights

 

November 14, 2008

Eva Airways, Taiwan's second-biggest airline, said on Friday it would start daily direct flights to China next month amid Taiwan's warming ties with the mainland.

 

The move, part of an expanded flight agreement across the Taiwan Straits, would allow Eva Air to fly to the Chinese cities of Shanghai, Hangzhou and Shenzhen, James Jeng, the company's president, told reporters at a briefing.

 

"We will maximize the benefits of these flights, and will be broadening our co-operation with Chinese airlines," he said.

 

The increased number of flights come after officials from China and Taiwan signed deals earlier this month on daily direct flights, new cargo routes and food safety during Beijing's highest-level visit to its political rival in 60 years.

 

Eva signed an agreement with China Eastern Airlines in June to work more closely on ticketing and baggage handling issues.

 

All flights between Taiwan and China previously had to go through a third city, usually Hong Kong, as they did not have regular direct links since the end of the civil war in 1949, but relations have warmed since China-friendly President Ma Ying-jeou took office in May.

 

China considers self-ruled Taiwan to be part of its territory and has threatened to bring the island under its rule, by force if necessary.

 

Jeng also said Eva Airways would try to swing to profit in the fourth quarter amid falling oil prices and a bottoming-out of the global economy.

 

The airline, along with other rivals worldwide, has been badly hit by high oil prices, reporting a TWD$1.87 billion (USD$57 million) loss last year and a TWD$10.47 billion loss in the first three quarters of 2008.

 

(Reuters)

 

[Pieter C. 5]

Chinese Airlines Seek Government Cash

 

November 17, 2008

Air China and China's other big airlines are seeking government aid to cope with hefty losses from high costs and weak demand, industry sources familiar with the situation said on Monday.

 

Shares in the country's three biggest carriers soared on the news, with the official Shanghai Securities News reporting that the parents of China Eastern Airlines and China Southern Airlines were likely to receive CNY3 billion yuan (USD$440 million) each in cash injections.

 

The sources said, however, that discussions were still under way with a decision expected by the end of the year.

 

The government has already moved to bolster sectors in troubled industries such as steel and textiles with tax breaks or reductions for exports, and the Shanghai Securities News said other industries may receive cash hand-outs as well.

 

Beijing also announced a CNY4 trillion stimulus plan earlier this month to boost the country's economy, although it was unclear whether industry support measures would be considered part of that package.

 

"(Air China's parent) China National Aviation is actively communicating with the government about a cash injection," a source close to the airline group said. He did not indicate how much aid the company was seeking.

 

The sources declined to be identified due to the sensitivity of the request.

 

A spokesman for China Southern's parent company confirmed that it had applied for government aid but said nothing had been decided yet and the carrier would get a decision from the government by the end of the year.

 

CNAC and the China Eastern group declined to comment.

 

China Southern's Hong Kong-listed shares jumped 11.9 percent to close at HKD$1.22, while China Eastern surged 7.6 percent to HKD$0.99 and Air China was up 2.5 percent at HKD$2.05, compared with a 0.1 percent dip in the benchmark Hang Seng Index.

 

After years of double-digit growth, China's air traffic began falling in May as a series of natural disasters and a slowing economy curbed travel demand.

 

Monthly air passenger volume in May to July posted declines of more than 1 percent from a year earlier while August dropped 12.4 percent, hit by strict airport security for the Beijing Olympics, although September saw a slight 0.7 percent pick-up.

 

China's air travel market is expected to remain weak as the global economy falters and may not rebound until the second half of next year, a senior Chinese industry executive said last month.

 

China Eastern alone has grounded more than 20 planes since the middle of the year, or 10 percent of its fleet, while many carriers have cut flights, domestic media have reported.

 

High oil prices and a sharp slowdown in the appreciation of the yuan since mid-July are also burdening the country's top three carriers, which booked a combined foreign exchange gain of CNY6.41 billion in the first half. The carriers hold a large volume of foreign-currency debt from aircraft purchases.

 

Air China, China Eastern and China Southern all posted losses in the third quarter and the whole sector will most likely end the year in the red for the first time since the SARS crisis in 2003, an industry executive said last month.

 

(Reuters)

 

[Pieter C. 5]

Air China Fuel Hedging Losses Rise To USD$454 Mln

 

November 23, 2008

Air China warned that potential losses from its fuel hedging contracts had tripled to USD$454 million from the third quarter as energy prices slumped on the back of the global economic slowdown.

 

The airline, one of China's largest carriers, said the fair value loss on the hedging contracts was around CNY3.1 billion yuan (USD$453.9 million), about CNY2.1 billion higher than the fair value loss disclosed in its third quarter results on October 28.

 

The disclosure by Hong Kong-listed Air China comes after Hong Kong's largest carrier, Cathay Pacific, warned earlier this month of potential hedging losses of about USD$360 million as of October 31.

 

"Investors should note that the above fair value loss is discounted cash flow calculated as at 31 October 2008 on the possible aggregate loss that may be incurred in relation to the entire remaining period of the hedging contracts," Air China said in the statement late on Friday.

 

"However, such fair value loss is not actual cash loss and therefore has no cash impact on the company. The actual amount of loss depends on the future movements in oil prices and adjustments of the fuel hedging positions."

 

The Chinese carrier, which has a cross-shareholding with Cathay Pacific, said if oil prices remained low it might be able to gradually make up for the losses with savings from buying fuel at low prices on the spot market.

 

Oil prices closed higher in New York on Friday after recovering from 3-1/2-year lows. Crude prices have dropped nearly USD$100 a barrel since record highs above USD$147 in mid-July, with demand shrinking as the credit crisis hit large consumer nations.

 

Air China and China's other big airlines are seeking government aid to cope with hefty losses from high costs and weak demand, industry sources familiar with the situation said on Monday.

 

After years of double-digit growth, China's air traffic began falling in May as a series of natural disasters and a slowing economy curbed travel demand. Air China, China Eastern and China Southern all posted losses in the third quarter.

 

(Reuters)

 

[Pieter C. 5]

Airports owed CNY4 billion by 29 Chinese carriers

 

Wednesday November 26, 2008

Despite the Chinese government's attempt to ease the burden on airlines by reducing landing fees 20% in March, 29 Chinese carriers had failed to pay about CNY4 billion ($585.1 million) combined to airports as of Sept. 30, according to the China Civil Airports Assn.

 

CCAA noted that domestic airlines owed CNY532 million on Feb. 29, with Hainan Airlines in arrears CNY102.2 million. China's big three of Air China, China Southern Airlines and China Eastern Airlines owed CNY45.7 million, CNY64.9 million and CNY44.2 million respectively. Smaller privately held carriers like East Star Airlines, Okay Airways and Juneyao Airlines are debtors as well. CCAA Secretary General Wang Jian said the defaults mainly comprise fees covering landing, parking and security services.

 

Chengdu-based Eagle Airlines reportedly has grounded two aircraft owing to its shortage of liquid capital and severe debt burden. CCAA said Eagle's defaults had reached CNY39.5 million as of Feb. 29.

 

In order to defend airports' interests, CCAA vowed to "take collective action" against defaulting carriers, but it backed off the stance yesterday and said it had "constructive" talks with the China Air Transport Assn., which represents domestic airlines. The organizations agreed to maintain communication in search a solution.

 

 

[Pieter C. 5]

China Eastern Evaluates Fuel Hedging Losses

 

November 26, 2008

China Eastern Airlines is evaluating potential losses from its fuel hedging contracts, which could be as much as USD$690 million according to some reports, as jet fuel prices dropped due to the global economic slowdown, the official Shanghai Securities News said on Wednesday.

 

China Eastern, one of the country's top three carriers, was making the evaluations after its competitor Air China warned last Friday that potential losses from fuel hedging contracts had reached USD$454 million.

 

Earlier this month, Hong Kong's largest carrier, Cathay Pacific, also warned of potential hedging losses of about USD$360 million as of October 31.

 

"China Eastern is evaluating possible losses but would not make comments before it announces accurate figures," the Shanghai Securities News quoted a company official as saying.

 

The newspaper quoted unnamed reports as saying that China Eastern had suffered potential losses of CNY4.7 billion yuan (USD$690 million) as of November 14. The Chinese authorities had asked China Eastern to suspend fuel hedging business, it quoted the reports as saying.

 

China Eastern and the country's other major airlines are seeking government aid to cope with hefty losses from high costs and weak demand, industry sources familiar with the situation have said.

 

China Eastern's Shanghai-listed A shares closed slightly lower at 3.93 yuan on Tuesday in line with a market downtrend.

 

(Reuters)

 

[Pieter C. 5]

China Southern To Get CNY3 Bln Government Capital

 

November 26, 2008

China Southern Airlines will get a CNY3 billion yuan (USD$440 million) infusion from the government to augment its capital position, the firm said.

 

The airline, which competes with Air China and China Eastern, said on Wednesday its parent was considering transferring that capital to the listed firm, but added that no decision had been taken.

 

The parent companies of the country's three largest carriers had sought government aid to cope with hefty losses from historically high fuel costs and weakening demand, industry sources said this month.

 

Beijing announced a CNY4 trillion stimulus plan this month to boost the country's economy, but it was unclear whether industry support measures would be considered part of that package.

 

(Reuters)

 

[Pieter C. 5]

China Eastern Shares Halted, Applying For Injection

 

November 27, 2008

China Eastern Airlines said its shares will be suspended from Thursday, as its parent is applying for a capital injection from the state.

 

The company said in a statement at the Shanghai Stock Exchange it will make an announcement regarding the injection and trading will resume within ten business days.

 

The company's parent is seeking ways to reduce China Eastern's asset-liability ratio, the statement said.

 

Losses from fuel hedging were CNY1.83 billion yuan (USD$268 million) by October 31, China Eastern said in a separate statement.

 

China's three biggest airlines -- Air China, China Eastern and China Southern, all posted losses in the third quarter due to a sharp slowdown in air traffic volume.

 

China Southern Airlines, China's top carrier by fleet size, said on Wednesday it will get a $440 million infusion from the government to augment its capital position.

 

(Reuters)

 

[Pieter C. 5]

Air China Says Not Informed Of Delivery Delays

 

November 28, 2008

Air China said on Friday it had received no notice from the government to delay new aircraft deliveries.

 

It was speaking after the South China Morning Post reported on Friday that Beijing would ask mainland airlines to delay delivery of new aircraft and may stop approvals of new purchases of aircraft amid a slowdown in air traffic demand.

 

The Civil Aviation Administration of China (CAAC) is preparing to ask carriers to negotiate with aircraft leasing firms and makers, such as Boeing and Airbus, on delaying delivery of new orders, the newspaper said, quoting Xiamen Airlines general manager Hu Bin.

 

"A meeting has been called by CAAC at the beginning of next month to discuss an adjustment of the delivery schedule," Hu said.

 

"The market is flooded with excess supply, resulting in ruthless price cuts in air fares and shrinking sales," Hu said, adding a delay of three to five months was necessary for demand and supply to return to a balanced state.

 

Air China said, however, it had received no such notice.

 

"Apart from the delay in delivering Boeing 787 due to its own reasons, all other (deliveries) remain normal," Huang Bin, secretary of the board of Air China said.

 

Huang said Air China had no immediate plan for a delay and was on schedule to receive 23 aircraft, including Airbus A320 and Boeing B737-800 aircraft, next year.

 

Air China had a fleet of 241 aircraft as at end of October.

 

Boeing had said earlier in November that the first flight of its 787 would be pushed into next year, rather than its target of the end of this year, because of the 58-day machinists' strike that was resolved early this month.

 

The number of aircraft has doubled in the past six years to more than 1,200, while air traffic on the mainland grew just 2 percent in the first 9 months of 2008, against 14 percent growth a year ago, the newspaper said.

 

China's airlines, which began to boom after the 2003 Severe Acute Respiratory Syndrome crisis was resolved and as China's brisk economic growth spurred business and leisure travel, saw a sudden reversal of fortune this year with a series of natural disasters and a sudden economic slowdown.

 

(Reuters)