02 Jul 2018

China Aviation Industry Newsletter 2 July

AVIC's Cirrus Aircraft delivers 7,000th SR series general plane Cirrus Aircraft under China Aviation Industry Corporation (AVIC) has delivered its 7,000th SR series general plane, according to AVIC. The CAAC has completed thirteen verification flight tests for the Y-12F, including automatic navigation, automatic approach and select heading hold. It was the first time for the CAAC to conduce the airworthiness test on the automatic control system of the aircraft under the CCAR Part-23, the CCAC's certified standard for small fixed-wing airplanes. CALC Delivers Its First Ever Airbus A321neo to Hawaiian Airlines CALC announced 28 June that the Group has delivered an Airbus A321neo aircraft to Hawaiian Airlines. This aircraft is also the Group’s first ever A321neo to be delivered. CALC Officially Rolls out Aircraft Investment Vehicle – CAG CALC announced 26 June that the Group has completed the establishment of an international investment vehicle for aircraft leasing – CAG to invest in aircraft portfolio on lease to global airlines. This is an important strategic move for the Group amid its transition towards an asset-light business model for supporting its continuing global expansion. China Southern Gets Approval For London–Beijing Route China Southern Airlines has received approval to fly to London from Beijing’s new airport, to be opened next year, the company told shareholders. The airline did not mention the London airport to be used for the service, according to a securities analyst who reported the contents of the meeting to Aviation Daily. China’s Hainan Airlines to sell remaining Azul stake China’s Hainan Airlines is selling the remainder of its stake in Brazil's Azul Airlines—part of Hainan parent HNA Group's continuing efforts to raise cash and pay down debt. China Airlines is mulling the A320neo and B737 MAX to replace older B737-800s China Airlines (CAL) is currently studying the A320neo and B737 MAX as replacement aircraft for its fleet of B737-800s. The B737-800s would be gradually replaced and any capcity holes will be filled with leased aircraft, according to chairman Ho Nuan-hsuan. As for the widebody fleet, the retirement schedule of the Taiwan airline's A330-300s is still being planned due to the aircraft being critical to long-haul operations. Meanwhile, its A340-300s are currently being replaced by A350-900s, which have now reached 14 in operation with CAL.

China Southern Airlines to establish Xiongan Airlines subsidiary

China Southern Airlines announced 30 June plans to invest CNY2.5 billion (USD376.8 million) in cash and another CNY7.5 billion (USD1.1 billion) in assets to establish Xiongan Airlines in Xiongan New Area, becoming the first of China's 'big three' airlines to establish a subsidiary in the new economic zone. The subsidiary airline, which is part of China Southern's dual hub strategy, will operate domestic and international passenger services, cargo transportation, provide aircraft maintenance and sales services. China To Raise Pilot Retirement Age to 62 China plans to raise the retirement age of pilots working with local airlines from 60 to 62 in 2021 as part of its plan to help ease an acute shortage. According to Chinese state projections, the country’s airlines will require 5,000 pilots per year to meet the rapid expansion and growth of the local civil aviation industry. China’s aviation market grew 13.1 percent in 2017, as 549.7 million Chinese traveled that year. Estimates place market growth at 16 to 17 percent this year. Guangzhou Airport expansion plans could see 30 new international flights in next three years Guangzhou is expected to have 30 new international flights in three years, increasing its reach to more than 100 cities globally as local authorities strive to market Baiyun Airport as an aviation hub. The ambitious plans pit the mainland southern Chinese city directly against Hong Kong, even though both are part of Beijing’s “Greater Bay Area” scheme that seeks to develop an integrated economic and business hub across 11 cities. Virgin Australia Launches First Flight From Sydney To Hong Kong, Expands Greater China Presence Virgin Australia launched 1 July its inaugural flight between Sydney and Hong Kong, further expanding the airline’s international network and Greater China presence. Virgin Australia Group CEO and Managing Director, John Borghetti A.O. said: “Today marks an important milestone for Virgin Australia as we launch our second route to Hong Kong, from Sydney.” Acumen Aviation © 2 July 2018 All Rights Reserved.