Air China's - Orient Aviation

REGIONAL ROUND-UPTHAI appointsnew presidentThai Airways International (THAI)has chosen its executive vice presidentof flight operations, ApaninSumanaseni, as the company’s new president,effective from May 1. Apinan, selectedfrom a shortlist of four in-house contenders,will succeed Kanok Abhiradee, whomTHAI asked to step aside last August, followingmassive losses at the carrier in thethird quarter of the year.Apinan, who began his career at THAI asa pilot after learning to fly jets as an officerin the Thai Royal Air Force, said his immediategoals were to maintain THAI’s growthand revitalize and re-structure the carrier’sdecision-making.Air Chinaoutlines fleet plansAir China’s president, Ma Xulun,said his carrier, which reported a netprofit of 2.41 billion yuan (US$298.4million) for the fiscal year to last December31, will spend 11.18 billion yuan on planes italready has on order as well as aircraft it isexpected to be allocated from China’s AprilUS$4.6 billion order for 80 B737s. Unveilingthe airline’s results in April, Ma said the carrieranticipated taking delivery of a mix of35 B737, A330, A320 and A319 airplanes inthe next two years, which would increase itsfleet to 208 airliners.Hainan cleared tobuy into CR AirwaysAfter extended negotiations, the HongKong Economic Developmentand Labour Bureau will allow theHNA Group, operator of Hainan Airlines,to purchase 45% of tiny Hong Kong-basedairline, CR Airways, thereby giving theaggressive Mainland carrier a significantfootprint in the Special AdministrativeRegion of Hong Kong.The approval permits Hainan Airlineschairman, Chen Feng, to purchase 45% ofCR Airways through a holding company,China Sun Wah Holdings. CR Airwaysfounder, Robert Yip and Meng Jianqiangwill hold the remaining 55% of the carrier’sequity between them.Approval for the buy-in also means CRAirways will maintain its status as a HongKong designated airline both for routes itnow has allocated to it and for those it wouldwish to operate in the future.In March, CR Airways put down adeposit for 30 B737-800s and 10 B787Dreamliner aircraft after taking the industryby surprise in December with the announcementit intended to acquire 40 Boeing aircraft.Sir Richard toregain Virgin Blue?At press time, speculation was intensifyingthat Sir Richard Branson’saviation group may increase itsminority stake in Australian low-cost carrier,Virgin Blue, and regain control of theairline founded by Sir Richard in 2000.In April, the majority owner of VirginMore Cathay, Dragonair speculationAfter a public hiatus of 14months, media reports againspeculated in April thatCathay Pacific Airwaysintended to re-organise itsshareholdings and possibly re-structure itsrelationship with Dragonair.The speculation emerged after the currentair service talks between Hong Kong andChina started with an agenda that includedCathay Pacific’s critical need to gain routeapproval for Hong Kong-Shanghai services.On April 10, Cathay Pacific and its shareholdersissued a statement, at the request ofthe Hong Kong Stock Exchange, which discussedthe issue, but did not make the intentionsof the involved parties totally clear.“The discussions between Air Chinaand Cathay Pacific about operational cooperationare designed to strengthen cooperationbetween them in various businessand operational areas. It is intended thatDragonair is to maintain its brand and identityand that it will remain a principal airlinein the Hong Kong and China mainland aviationmarkets.”The joint statement from Air China,10 ORIENT AVIATION MAY 2006Dragonair: will Cathay Pacific becalling the shots in the future?Cathay Pacific, China National AviationCo. Ltd, CITIC Pacific and Swire Pacificalso said: “The parties (as listed above) confirmdiscussions are taking place aboutoperational co-operation between CathayPacific, Air China and Dragonair” but added“there is no agreement or arrangementwhich is discloseable under listing rules”.“In particular, Swire Pacific intends toremain the principal shareholder in CathayPacific for the long-term; Air China understandsthe China National AviationHolding Company (CNAHC) intendsto remain the controlling shareholderfor the long-term. Although CITICPacific may reduce its interest in CathayPacific it intends to remain, in the longterm,a signif icant shareholder inCathay Pacific, and Air China has no currentintention to privatize CNAC.” Certainfacts, however, remain irrefutable under thecurrent air service agreement.Dragonair, also Hong Kong-based, has56 routes a week into China, including multipledaily services to Shanghai and Beijingwhile Cathay Pacific flies 14 times a week toChina, and has only been permitted to offerfreight services to Shanghai.For Cathay Pacific’s international clientelewho are travelling onto the Mainland,this is a poor service.For the carrier, it is a route it must fly foras the hub carrier it is.