Airline News
China’s Shenzhen, Juneyao, Ningxia, Hainan airlines continue expansion
June 1st 2015
A statement released by Air China last week said its board has given permission to subsidiary, Shenzhen Airlines, to purchase 46 B737s, but did not provide details of the order. Read More » At press time, Shenzhen had a fleet of 158 single-aisle aircraft, including 66 A320s and 87 B737s.
Shanghai’s ‘boutique’ carrier, Juneyao Airlines, has formally launched an Initial Public Offering on the Shanghai Stock Exchange floating 68 million A shares with the goal of collecting 715 million yuan ($115 million) to acquire seven A320s and two backup engines. The carrier said it made an accumulated net profit of 983 million yuan in the past three years. In the first quarter of 2015, to March 31, it reported net earnings of 267 million yuan, more than double the net income of 101.5 million yuan in the corresponding period a year ago.
The Civil Aviation Administration of China (CAAC) has given approval to Ningxia Cargo Airlines to start operations from Yinchuan Hedong Airport on domestic cargo and mail services using a trio of B737-300Fs acquired from Hangzhou’s Zhejiang Loong Airlines. Based in the Ningxia Autonomous Region, the cargo carrier has a registered capital of 120 million yuan. Its shareholders include Shan'xi Tongyang Investment Management (53%) and Xi'an Huijie Logistics Co. (44%) with the remaining 3% shared among the Shanxi Xiangyu Logistics Co., Shanghai Chongda International Freight Co. and Shan'xi International Air Freight.
Hainan Airlines has denied Chinese media reports that said it was interested in acquiring the 24% stake in loss-making Pakistan International Airlines that has been for sale since 2013.
Meanwhile, Malaysian Transport Minister, Datuk Seri Liow Tiong Lai, said Juneyao, China Eastern Airlines, Air China and 9 Air will all open China-Malaysia routes this year and added Air China would offer Beijing- and Shanghai-Kuala Lumpur flights. China Eastern will start a direct Shanghai-Langkawi service as well as flights to Sabah and other Malaysian states. Juneyao would offer chartered services and 9 Air would focus on the budget segment. Commenting on the negotiations, Liow said “it goes positively, they will fly to Malaysia".
