News
Shanghai carriers gear up for growth
April 22nd 2016
China Eastern Airlines (CEA) plans to grow its fleet from 561 (year-end 2015) to more than 800 by 2020, its president, Ma Xulun, has told Reuters. Read More »
Shanghai-based China Eastern has been on a roll after adding countless new destinations in the U.S. and Europe in the past twelve months and placing significant long-haul orders with Airbus and Boeing. Aviation Week last month reported CEA will order ten more B777-300ERs. In April 2012, the carrier signed on for 20 -300ERs, of which ten frames had been delivered at press time.
In August, CEA placed a commitment for 15 additional A330s, joining 45 A330s already in service. In the longer term, it is looking at the B787, B777X and A350 as fleet renewal options.
Last year, seats offered by Mainland airlines exceeded those offered by American carriers for the first time, fuelling worries about overcapacity and falling yields, but CEA’s Ma said this does not worry him, given the Chinese middle class’s growing appetite for long-haul travel.
Last week, CEA forecast a 60%-70% jump in first-quarter earnings due to the low fuel price and robust demand.
Fellow Shanghai carrier, Spring Airlines, this week said it plans to expand its fleet from 58 A320s now to 100 by 2018. In December, China’s first independent LCC signed on for 60 A320neos. Its chairman, Wang Zhenghua, told Reuters the carrier has no plans for long-haul routes and/or wide-body aircraft.
At Juneyao Airlines, also based in Shanghai, 2015 net profit jumped 145% year-on-year to 1.05 billion yuan ($162.3 million), the “auspicious airline” announced last week. This is Juneyao’s third consecutive annual profit. The carrier is studying a potential A330 wide-body order to enter the “international market”. It already flies to Russia, Japan, Thailand and other short-haul destinations.
Elsewhere in China, the first A330-200 for Lhasa-based Air China subsidiary, Tibet Airlines, has rolled out of Airbus’ paint shop in Toulouse. The carrier has said it plans to launch long-haul services to Europe with the A330. The full-service airline, launched in 2011, has 14 A319s. It received its maiden A320, the first to sport its “super economy class”, on March 25.
Tibet Airlines has a 49% stake in Himalaya Airlines, the start-up that launched regional services based out of Kathmandu Tribhuvan International Airport last week.
