China's - Orient Aviation

REGIONAL ROUND-UPAviation chief Yanggives LCCs majorboost in ChinaChinese aviation delegates attendingChina’s five yearly political congressin Beijing in October provideda clear indication of their policy strategiesfor the industy “on its sidelines” of the17th Communist Party Congress.Aviation minister, Yang Yuanyuan,head of the Civil Aviation Administrationof China (CAAC), told reporters there wereno plans to amalgamate some or all of the“Big Three” carriers: Air China, ChinaEastern Airlnes and China SouthernAirlines.However, there are plans to build asecond airport south of Beijing, specificallyfor low-cost carriers. Yang said a sitehad been chosen for the complex and theCAAC was “devoted “ to developing lowcostairlines.Elsewhere at the gathering, Air China’schairman, Li Jiaxiang, said Air China hadno plans to order the A380 and added thatonly three Mainland airports can accommodatethe aircraft.Vietnam Airlines orders10 A350 XWBSSizzling Vietnam Airlines, whichhas one of the highest growth curvesin the Asia-Pacific, has signed aMemorandum of Understanding to acquire10 A350 XWB airplanes and 20 additionalA321s.Vietnam is predominantly an Airbus airline,but it has ordered four B787s with thepossibility of increasing the order to 16 ofthe airplanes. It is speculated that the adventof Qantas Airways in Vietnam, via its18% investment in low-cost carrier (LCC),Pacific Airways, and the planned joint venturebetween Vietnam’s Vinashin and theOpen Skies progressHainan Airlines, now China’s fourth largestcarrier, could have 250 aircraft in five yearsAirAsia group, might persuade the nationalflag carrier to launch its own LCC.Virgin Blue closerto flying to U.S.Virgin Blue has received a boost inits bid to begin trans-Pacific servicesfrom Australia to the U.S.West Coast with the news that Australia andthe U.S. are committed to reaching an OpenSkies agreement by early 2008.Virgin Blue, which is majority-ownedby Toll Holdings Ltd, has announced itintends to launch V Australia on the route bylate next year. It has ordered six B777ER aircraftfor the new subsidiary airline.Separately, Virgin Blue will introducea premium economy section on itsAustralian domestic flights as part of itsstrategy to wrest more corporate travellersfrom Qantas.Hainan’s Chen Fengbranches into insuranceThe HNA Group, majority ownerof Hainan Airlines, is setting up aUS$65 million joint venture insurancecompany with Taiwanese insurancecompany, Shin Kong Financial HoldingCo.HNA group chairman, Chen Feng, toldreporters in Beijing last month the Mainlandgovernment had approved the 50/50 jointventure, which will start operations in mid-2008.He said the group’s airline passengersand airlines were potential customers for thenew company’s travel, airplane, passengerand airport equipment policies.Separately, the charismatic boss ofChina’s fourth largest aviation companysaid he will now proceed to put all thegroup’s airlines – Hainan Airlines, ChinaXinhau Airlines, Chang’an Airlines andShangxi Airlines into a new holding company,Grand China Air, based in Beijing,following the completion of discussionswith the Chinese regulatory authorities.The group’s carriers have a fleet of 130planes, which would be increased to 240-250 aircraft in five years, said Chen. Inmid-October, Hainan Airlines orderedeight A330-300s for service on its routes toBrussels and Budapest.Aviation will account for 70% of thegroup’s business, he told the South ChinaMorning Post, but he did not see his airlinesimmediately expanding its internationalnetwork. As well as its domestic services,Hainan flies to Hong Kong, Japan, Korea,Greater China and several Southeast Asiancities.CAL boss takes on dual roleThe Malaysian government has announced it will lift controlson at least four Malaysia-Singapore services, movingcloser to abolishing the exclusive rights of the MalaysiaAirlines (MAS) and Singapore Airlines (SIA) to fly betweenthe two countries.Malaysia said twice daily routes between Singapore and KualaLumpur, Kota Kinabalu, Kuching and Penang, are to be openfor bids from non-MAS and non-SIA airlines. At press time,Singapore had yet to announce if it agreed to the Malaysian governmentproposal.Ringo Chao (51), the president of Taiwan’s flag carrier,China Airlines (CAL), has added the chairman’s duties tohis portfolio after Phiip Wei resigned in October.Wei, 65, stepped down following an accident in Okinawa inAugust when a CAL B737-800 burst into flames. All passengers andcrew were safely evacuated from the aircraft. Initial investigationssuggest the fire was caused by maintenance error.Wei began his career with CAL in 1970 and under his leadershipthe airline invested millions of dollars in the last decade in an effortto establish the highest levels of operating safety.10 ORIENT AVIATION NOVEMBER 2007