China Southern Airlines Sign Agreement With CEA and Shanghai Airlines
China Southern Airlines Group Chairman Liu Shaoyong was appointed as the new chairman of China Eastern Airlines parent China Eastern Air Holding Co. Friday, appearing to pave the way for the merger of CEA and Shanghai Airlines.
In an effort to boost Shanghai’s status as an international aviation hub, the State-owned Assets Supervision and Administration Commission of the State Council, CEA’s controlling shareholder, reached agreement with the State-owned Assets Supervision and Administration Commission of the Shanghai Municipal Government, SAL’s controlling shareholder, on the merger of the two Shanghai-based airlines, an industry insider told ATWOnline Friday. Key details on how the combination will move forward remain undecided, but Liu is expected to be chairman of the merged carrier. The government’s plan to revive CEA includes a change in leadership in advance of any consolidation.
CAAC supports domestic consolidation. Among the measures announced last week as part of its effort to bolster the flagging Chinese airline industry was its promise to “support mergers and consolidation” when such combinations would improve management levels and enhance international competitiveness. Beijing also is considering injecting CNY28 billion ($4.08 billion) in both CZ and CEA in addition to the CNY3 billion it already has granted each carrier.
Meantime, SASAC named Air China parent China National Aviation Holding Co. VP Ma Xulun as CEA’s new CEO. He succeeds Cao Jianxiong, who is expected to be CNAC’s new VP. CZ Party Secretary Li Wenxin will be responsible for the Guangzhou-based carrier until a new chairman is appointed.
Airlines Manufacture : Chinese Government New Plane Order May Delay
The Chinese government may tell its state-owned airlines to delay new aircraft deliveries because of slowing travel growth amid a global-wide economic downturn, the Associated Press reported, citing a weekend article in the China Morning Post newspaper.
Regulators may also halt new purchases, the newspaper said, citing Hu Bin, general manager of Xiamen Airlines, a mainline carrier. State-owned, and partially state-owned Chinese airlines have ordered hundreds of new aircraft from Boeing Co. and Airbus.
Air China alone has 61 unfilled orders with Airbus, and 77 unfilled orders with Boeing, including 15 of the long-awaited 787 Dreamliner. Shares of Boeing were off 1.4% in premarket trade. U.S.-traded shares of Airbus parent company European Aeronautic Defence & Space Co. were flat at $16.05.
Airlines Companies Expect Recovery Airfare For Business-Class Flight Service
Airlines can expect a modest recovery in premium airfares in 2010 as business travelers begin returning to the skies, American Express Co.’s business-travel unit said Wednesday. Globally, domestic business-class airfares will be flat to up 5%, while long-haul and international flights could see ticket prices rise by 1% to 6%, the group said. Projected growth in GDP next year will be the primary driver for business travel, as well as pent-up demand among businesses that slashed travel budgets this year and put off customer meetings. For North America, which accounts for nearly a quarter of all global traffic, domestic business-class airfares are likely to climb 2% to 7% next year, and 1% to 6% or long-haul and international flights, American Express said.
American Airlines Reopene Flagship Lounge at Miami International Airport
American Airlines said Tuesday that it has re-opened its Flagship Lounge at Miami International Airport, which caters to first-class passengers traveling through the airport on select transcontinental or international flights.
The lounge is in Concourse E on the departure level, directly beyond the security checkpoint.
American said its five Flagship Lounges offer: conference rooms, high-speed Wi-Fi access, computers with high-speed Internet access, shower facilities with towels, shampoo, body gels and blow-dryers. They also offer self-service complimentary wines, liquors and other beverages, as well as a complimentary buffet.
American’s other lounges are at Chicago O’Hare, London Heathrow, New York’s JFK and Los Angeles international airports.
Airlines Begin New Wave of Discounted Flights
This week Britain’s major airlines have launched a series of seat sales in a bid to keep Britons travelling, with flights available from as little as 1p, including tax.
Bmibaby (www.bmibaby.com) is offering up to 50 per cent off all of its flights from Birmingham, Manchester and East Midlands. Passengers wishing to take advantage of the offer must book by and travel before October 24. The cheapest fares start from as little as £1, excluding tax. However the offer does not apply for the periods: February 12 to 24, April 2 to 22, April 30 to May 7, May 20 to June 3 and July 16 to September 9.
British Airways (www.ba.com) has launched the second part of its January seat sale with an extra £20 cut from many those routes that have already been discounted. For example, return fares to New York available from £239, including tax.
EasyJet (www.easyjet.co.uk) is offering over 16 million fares being reduced by 25 per cent between March 1 and June 30. Bookings must be made by January 13 for travel between March 1 and June 30.
Flybe (www.flybe.com) has launched a sale where passengers only pay the taxes and charges on selected flights, until January 12.
Flyglobespan (www.flyglobespan.com), the Scottish carrier has reduced many of its fares by 25 per cent for both its domestic and interanational routes. Fares for destinations such as Faro and Palma now start from £29.99 one-way, including taxes. The period of travel for winter flights runs until April 30, 2009, while the summer flights operate from May 1 to October 31, 2009.
Monarch (www.fly-monarch.co.uk) is offering up to £40 off many of its flights, for bookings made before January 13. The low-cost carrier has reduced return fares to places such as Malaga, Barcelona and Alicante to as little as £22 one-way, including tax.
Ryanair (www.ryanair.com) is offering up to a million one-way fares from as little as 1p, including tax. For example, a return flight from Birmingham to Cuneo, Italy cost just 2p. Book before the end of Monday.
Virgin Atlantic (www.virgin-atlantic.com) has offering up to 40 per cent of seats, with return flights to Dubai from £297, including tax, premium economy from £719 return to Nairobi and upper-class from £1099 return. Book before January 27.
