News
Hainan Airlines to launch six more long-haul routes this year
August 11th 2017
After inaugurating 15 international routes in the first-half of this year, HNA Group’s Hainan Airlines is planning to launch services to six more long-haul destinations before year-end. Read More »
The planned routes, using B787s and A330s, are Shanghai-Tel Aviv, Beijing-Prague-Belgrade, Shenzhen-Brisbane, Chongqing-New York JFK, Chengdu-New York JFK and Shanghai-Brussels.
HNA Group carriers are carving out markets in China’s second- and third-tier metropolises, including countless new flights from Chengdu, Chongqing, Changsha, Xian and Tianjin.
The commercial viability of these services is questionable, especially at the front end. Economy seats, although low-yielding, can easily be distributed through China’s myriad travel agency network, but business class seats are much harder to sell in these emerging markets.
The only way carriers can make routes from China’s secondary cities work is through local government subsidies and good cargo loads. But that may not be enough. Earlier this year, British Airways cancelled Chengdu-London because it was not sustainable. Last week, United Airlines said it would terminate Hangzhou-San Francisco later this year because the route was losing money.
