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CHARM OFFENSIVE - Orient Aviation

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CHINA NEWSPlanes, new dealsfor China SouthernIt appears the log jam in China aircraft orders is about to be released by the BeijingGovernment. In the last two to three years<strong>Orient</strong> <strong>Aviation</strong> has been told on several occasionsa number of China’s airlines have wantedto order planes, but have been put in a holdingpattern by the authorities.Now, mainland sources have said, Chinais to take 36 new Boeing aircraft. Twenty twowill be leased by China Southern Airlines(CSA). Twenty will be B737-800s, taken on afinance lease to replace 20 B737s on operatingleases. The remaining two jets are B747-400s.Government approval is due to be announcedsoon and delivery of the first planes is expectedto start next year through 2005.Meanwhile CSA also has signed anagreement with China Post Airlines, the firstof its kind between a Chinese airline groupand the national postal service. CSA will carrymail through the China Post network whileChina Post Airlines will carry Southern AirlinesGroup cargo.China Northern and Xinjiang Airlines,which will be part of the CSA-led mergergroup, will form an important spoke in thedistribution network.Also, CSA and KLM Royal Dutch Airlineshave agreed to implement code-share serviceson the Beijing-Amsterdam and Shanghai-Amsterdam routes.GAMECOrevenue upThe Guangzhou Aircraft MaintenanceEngineering Company (GAMECO) increased sales revenue 7.64% in thefirst half of the year to June 30. The majorcontributors to sustained profitability wereline maintenance and component overhauland repair. Their revenue increased 18%and 5.7% respectively. GAMECO is lookingto expand its third party contract businessthroughout the second half of the year toachieve a 10% increase in sales.The maintenance company will breakground on a 900 million (US$102 million)four widebody bay hangar at Guangzhou’sNew Baiyun International Airport later thisyear. The hangar will accommodate sevenaircraft at one time and will be big enoughto house the A380 super jumbo.September 2001 | <strong>Orient</strong> <strong>Aviation</strong> | 15

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