News
China Eastern looks for investors, Juneyao to triple fleet by 2020 and Azul pilots joining HNA
March 18th 2016
Shanghai’s China Eastern Airlines said it wanted to reduce its state-owned equity and allow for more capital injection by inviting another strategic investor to the table. Read More » “[Regulations] used to stipulate state-owned stakes should account for no less than 50% in China’s ‘Big Three’ carriers, but this figure can be reduced to about 40% to attract more social capital injection [from a strategic investor],” China Eastern CEO, Ma Xulun, said this week.
In January, the China Securities Regulatory Commission allowed China Eastern to circulate 2.33 billion A shares at 6.44 yuan ($0.98) a share, to no more than ten investors, to collect approximately 15 billion yuan for fleet renewal and debt retirement. In 2015, U.S. carrier Delta Air Lines, acquired a 3.55% stake in the fellow SkyTeam carrier for $450 million.
China Eastern will increase its long-haul capacity by more than 20% this year when it launches routes to Chicago, Madrid, Amsterdam, St. Petersburg, Brisbane and Prague and add frequencies to Japan, Korea and Southeast Asia. Forty nine new aircraft will be delivered to the carrier by December 31. China Eastern general manager for planning and development, Guo Lijun, said the carrier is deciding between the A350-900 and the B787-9 for its long-haul fleet expansion and renewal.
At fellow Shanghai carrier, privately owned Juneyao Airlines, chairman Wang Junjin told media this week the airline and its LCC subsidiary, 9 Air, plan to operate 150 aircraft by 2020. The carrier launched operations in 2006 and has a fleet of 50 A320 Family jets. "Our seats will increase around 29% this year as more new planes arrive," Wang said, and added he plans routes to Thailand and Russia and expected the opening of Disneyland in Shanghai to create extra demand. Juneyao has been approached by several alliances, Wang said, and he did not rule out the possibility of Juneyao joining one of them, but he declined to be specific as talks continue.
On Monday in Fujian province, Xiamen Airlines received its fifth B737-800 for the year, raising its fleet to 135 aircraft: 108 -800s, 17 -700s, four B757-200s and six B787-8s.
Brazilian newspaper, Folha de Sao Paulo, has reported Azul Brazilian Airlines plans to transfer as many as 1,700 pilots to HNA Group carriers Hainan Airlines, Grand China Air, Tianjin Airlines, Lucky Air and West Air. Late last year, HNA acquired a 23.7% stake (for $450 million) in loss-making Azul.
