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JANUARY 2015

Week 3

Airline News

Air China commits to 60 B737s, unveils 2015 long-haul plans

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January 13th 2015

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Beijing-based Air China has signed an agreement with Boeing to purchase 60 B737s, including B737NG and B737 MAX aircraft, subject to government approval. Read More » The commitment is valued at more than $6 billion at current list prices, with deliveries scheduled between 2016 and 2020. The order adds wright to  Boeing’s latest market forecast, which predicted Chinese carriers will require more than 6,020 aircraft in the next 20 years, an 8% rise over last year’s two-decade estimate, as growing leisure travel drives demand.

Meanwhile, the flag carrier has unveiled major international network expansion plans for 2015, which include route launches to Johannesburg (three times weekly B777-300ER from June 19), Montreal and Havana (three a week on B777-300ERs from September 20) and Addis Ababa (thrww a week A330-200s from October 25). Despite its growing economic influence on the continent, Air China has not offered scheduled passenger services to Africa until now.  It is unclear at this point if the carrier’s arrival on the continent will result in reductions, or cancellations, of existing services to Beijing by Star Alliance partners Ethiopian Airlines and South African Airways. The latter is said to be losing money on its China-South Africa link.

Though not confirmed yet, it is widely expected that Air China will have fifth freedom rights for the Montreal – Havana sector. The Caribbean, and Cuba in particular, rank among the most visited destinations by Canadians. Air Canada flies to Havana daily from Toronto. The Montreal – Havana route is not in airline’s fixed schedule.

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