Spring Airlines : 9S : CQH

Spring Airlines plans to establish a base in Shenyang and signed an agreement with the municipal government detailing plans to build the city into an aviation hub for northeast Asia.
The LCC currently operates bases in Shanghai and Sanya in the south. A Spring spokesperson told ATWOnline last week that the airline plans to launch service to both provincial capitals and tourism destinations from Shenyang over the next few years, including destinations like Hangzhou, Nanjing, Chongqing, Xiamen, Qingdao and Sanya. It also is considering opening international routes from Shenyang, which has a population of around 7 million. Shanghai currently is the only city it serves from the airport.
Spring Chairman Wang Zhenghua said he is confident that domestic demand will continue to expand. "The domestic market is recovering very well owing to Beijing's economic stimulation policies. I think it will be even better in the second half than in the first half since the domestic economy and international trade are recovering," he said.
He also called on CAAC to liberalize air services. "We hope new entrants [privately run carriers] can have access to some markets in a more fair way, such as the Beijing market and Shanghai market," he said.
Based on the China Civil Aviation Domestic Routes Operation Regulation implemented by CAAC, all air routes among the country's 20 busiest airports have to be approved by the regulator. Owing to "first-come, first-served" policies and the lack of a mechanism requiring underperforming carriers to surrender routes, it is difficult for new entrants to gain approval and access to more popular and profitable routes. Despite these obstacles, Wang said he remains confident that private carriers have a "very bright future" in China

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Spring Airlines expects to report a CNY120 million ($17.5 million) net profit for 2009, a sixfold increase from the CNY20 million earned last year, according to the Chairman Wang Zhenghua. The Shanghai Hongqiao-based LCC was CNY140 million in the black through September owing to rapid growth in the domestic market, "but the fourth quarter is the traditional low season, so it's not surprising that we are suffering from a daily loss of CNY600,000 this month," Wang noted.
Spring is planning a dramatic fleet expansion. "We have decided to introduce 14 A320s in the next few years, which will cost about CNY5 billion," Wang said. It currently flies 14 A320s. It plans to go listed on the Shanghai Stock Exchange in the second half of 2010 and has no plans to introduce a strategic or financial investor before then. It also is planning on introducing international routes. Its fleet will remain anchored by the A320, "so the best possibility is to open new routes to Japan, South Korea and Taiwan, Hong Kong and Macau," he revealed.
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China’s Spring Airlines has selected CFM56-5B engines to power four new Airbus A320 family aircraft in an engine order valued at $70 million U.S. at list price.

The airline is scheduled to begin taking delivery in mid-2012.

Spring Airlines, the first low cost carrier in China, is headquartered in Shanghai.

As a subsidiary of the Spring International Travel Service Ltd., one of the leading travel service providers in China, the airline began operation in 2005 and a total of 37 purchased and leased CFM56-5B-powered A320 aircraft, either in service or on order. The airline is currently operating 19 A320s.

Spring Airlines accelerates Japanese expansion

Shanghai-based LCC Spring Airlines is accelerating the pace of its Japanese market expansion. The carrier operates thrice-weekly Shanghai-Ibaraki service and is scheduled to open a twice-weekly Shanghai-Takamatsu route this week. It also plans to start Shanghai-Kyushu flights this year and a Shanghai-Hokkaido route next year. Spring delayed the opening of new routes in Japan owing to the natural and nuclear crises in March ([Vous devez être inscrit et connecté pour voir ce lien]).
As part of its expansion plan, Spring is considering setting up a joint venture airline in conjunction with some Japanese enterprises, although Chairman Wang Zhenghua said there is no specific timetable and noted it would need government approval. “The reason that we want to set up a new JV in Japan is because our growth in China is constrained by a pilot shortage,” Wang explained. Japan Airlines and All Nippon Airways both plan to launch low-cost subsidiaries in the coming months.
Wang also implied that Spring is interested in launching JVs based in South Korea, Hong Kong and Macau.