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Orient Aviation's COVID-19 briefs: Mainland Chinese consortium to establish Sanya International Airlines

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June 15th 2020

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  • China Eastern Airlines (CEA), Juneyao Airlines, Hainan Communications, Sanya Development Holdings and Ctrip Travel Network Technology have announced plans for a new carrier, Sanya International Airlines. The airline will be established with three billion to six billion yuan (US$423 million - US$845 million) in registered capital. Read More » CEA will hold 51% in the airline, Juneyao 15%, Ctrip 14% and Hainan Communications and Sanya Development at 10% each, CEA said in a regulatory filing to the Stock Exchange of Hong Kong yesterday.

    The airline will be based at Sanya International Airport in Hainan Province. A second airport is being built at Sanya. The new airline aimed to "seize the opportunity of the establishment of a pilot free trade zone and a free trade port with Chinese characteristics and the construction of an international tourism consumption hub in Hainan".
  • All Nippon Airways' (ANA) monthly traffic figures showed it transported 204,155 domestic passengers in May, a 94.7% decline from the same month a year ago. Demand collapsed by 94.5%. Available Seat Kilometres (ASK) were down 85.2%. The domestic load factor was 43.6 percentage points lower at 25.7%.

    The Star Alliance member flew 24,179 international passengers for the month, a 97.1% drop from 833,884 in the prior corresponding period. The international network recorded a 96.3% fall in RPKs and an 88.5% reduction in ASKs, with load factor sliding 50.3 percentage points to 24%.
  • The Jetstar Pacific name looks set to disappear after the LCC’s co-owners, Vietnam Airlines and the Qantas Group announced today the airline would be rebranded to Pacific Airlines. Once regulatory and government approvals were received, Pacific Airlines would have a new logo and livery inspired by Vietnam Airlines' brand colours and design, the joint venture partners said in a statement.

    The changes, which included switching reservation systems from Navitaire to Sabre to streamline bookings and network and customer functions with Vietnam Airlines, aimed to improve the profitability of the LCC in response to the impact of the coronavirus pandemic. "Low-cost carriers will play a certain role in supporting the return of travel as restrictions ease. By streamlining functions, Pacific Airlines can remain competitive, inherit many of the efficiencies of Vietnam Airlines and continue to offer the low fares our customers expect," Vietnam Airlines executive vice president and Pacific Airlines chair, Trinh Hong Quang, said.

    Jetstar Group CEO, Gareth Evans, said the time was right to "take advantage of the strength and scale of Vietnam Airlines in its home market". Evans said Qantas and Vietnam Airlines would continue to review the LCC's structure and future shareholding arrangements. In May, Qantas Group CEO, Alan Joyce, said the airline group was in talks with Vietnam Airlines about the future of Jetstar Pacific, which is 70% owned by the Vietnamese flag carrier and 30% by Qantas Group.
  • Royal Brunei Airlines (RB) said it has applied to the Civil Aviation Authority of Singapore (CAAS) for its passengers requiring travel to London to be able to transit through Singapore Changi Airport. On its website, RB said for the months of July and August its Thursday Bandar Seri Begawan-Singapore flight has been timed to connect with Singapore Airlines (SIA) SQ322 to London Heathrow and SQ 317 from London Heathrow on Monday would land in time to connect to RB's Tuesday service from Singapore to Bandar Seri Begawan.

    RB has released its flight schedule for July and August, which lists 18 flights a week to five destinations – Hong Kong, Kuala Lumpur, Manila, Melbourne and Singapore – two fewer than the  20 flights a week in June. One weekly Bandar Seri Begawan-Manila rotation has been dropped from the schedule. Brunei closed its border for foreign arrivals and transit passengers on March 24, but has been services to retain connectivity, supplies and the "small number of guests who must and are able to travel onto other destinations", the airline said.
  • Figures from the Airport Authority Hong Kong, published last Friday, showed Hong Kong International Airport handled 35,000 passengers in May 2020, representing 0.6% of the 6.236 million passengers that passed through its terminals in the same month in 2019. While the number of passenger flights fell 84.6%, to 4,735, from 30,710 previously, there was a 29.3% increase in cargo flights in the month to 6,335 movements.
  • Australian government figures, published on Friday, air travellers into and out of the country fell 98%, to 16,211 in April, the first full month of the country’s international border being closed to slow the spread of the coronavirus. Capacity for the month compared with 3.5 million passengers a year ago. Seat capacity declined 94.6% and the number of occupied seats tumbled 53.4 percentage points to 29.5%. Qatar Airways had the largest market share in the month, carrying 44.5% of all Australian international travellers.

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