China Eastern : MU : CES

China Eastern Airlines has posted a 16% rise in passenger traffic in September, with both the international and domestic sectors experiencing double-digit growth.
Domestic RPKs increased 20% from a year before, regional RPKs fell by 13% and international RPKs rose by 11%, giving an overall jump of 16%, says the Shanghai-based carrier. The regional segment refers to traffic from Hong Kong and Macau..........

Air China, China Eastern Airlines and China Southern Airlines enjoyed a financial turnaround in the third quarter owing to a strong recovery in the domestic market and gains on their fuel hedges.
CA earned net income of CNY885.3 million ($129.5 million) in the quarter, a significant reversal from the CNY1.94 billion loss suffered in the year-ago period, on a 1.3% lift in operating revenue to CNY14.05 billion. Expenses dropped 10.6% to CNY13.45 billion and the Beijing-based airline reported a CNY554 million profit on its fuel hedges for the period.
China Eastern posted a net profit of CNY23.2 million, reversed from a loss of CNY2.33 billion. A fuel hedge gain of CNY154 million was a key driver of the result.
China Southern was CNY284 million in the black compared to an CNY810 million deficit in the 2008 quarter. Revenue rose 9.5% year-over-year to CNY15.95 billion and expenses dropped 5% to CNY13.37 billion. CZ cited "effective cost control" and the "return of the civil aviation construction fund" as reasons for the improvement.
The Big Three were profitable through the first nine months of 2009 as well thanks to government aid that helped carry them through the recession. CA posted a CNY3.81 billion profit through September; it received a government subsidy of CNY962 million. CZ reported net income of CNY322 million during the period thanks to CNY1.56 billion in government aid, and CEA was CNY1.2 billion in the black as of Sept. 30.
Despite the results, local analysts continue to say that China's airlines still suffer from overcapacity and inefficiencies. "Domestic demand keeps rising, but airfares are still plummeting and Chinese carriers' international routes have been hit hard by swine flu," an industry insider told ATWOnline, adding that the trio's fourth-quarter profits will fall from third-quarter levels.

China Eastern Airlines will decide which global alliance to join prior to the Chinese New Year on Feb. 14, according to MD Ma Xulun.
SkyTeam continues to be the favorite, which likely would lead to Shanghai Airlines' withdrawal from Star Alliance. CEA's acquisition of SAL received final approval from the China Securities Regulatory Commission last month [Vous devez être inscrit et connecté pour voir ce lien].
With a 50% share of the Shanghai market, CEA will have a base from which it can explore new destinations that will enhance the airport's status as an international hub, Chairman Liu Shaoyang said. It is considering opening express service from Fujian province and other areas of southeast China that will feed international routes from PVG.
Liu said CEA was CNY1.85 billion ($270.6 million) in the black through the first 10 months of 2009. It earned CNY1.2 billion through the third quarter and "has survived through the most difficult period," he said, while warning that "rapid reforms" are still needed to continue the recovery. The carrier is expected to finish issuing additional shares worth CNY7 billion this month, reducing its debt ratio to 94.7%

China Eastern Airlines has agreed the purchase of 16 [Vous devez être inscrit et connecté pour voir ce lien] aircraft with the European airframer.
The carrier has disclosed the agreement in a statement to the Hong Kong stock exchange.
While it has not identified the specific variant, it says that the aircraft will be delivered in stages from 2011 to 2014.
China Eastern has not disclosed an engine supplier but its current A330 fleet is powered by Rolls-Royce Trent 700s.
It values the agreement at $2.6 billion based on the 2007 list price. China Eastern is in the process of merging with Shanghai Airlines

Chinese regulators have approved the merger between China Eastern Airlines and Shanghai Airlines.
China Eastern received the approval from the China Securities Regulatory Commission on 30 December, says the Shanghai-based carrier.
The airline's board will proceed with the relevant procedures to complete the merger, adds the carrier.
China Eastern offered to take over rival Shanghai in July in a 9 billion yuan ($1.3 billion) deal. It recently completed a sale of shares, which raised 6.4 billion yuan, to fund the acquisition.

China Eastern Airlines has posted an 8.8% growth in passenger traffic in December.
Domestic RPKs grew 9.7%, international RPKs rose 12.3% and regional RPKs fell 19.2%, says the Shanghai-based carrier. Regional traffic refers to that from Hong Kong and Macau.
In real terms, the total number of passengers carried in December grew 10.9% to 3.4 million, says the airline.
Domestic passenger numbers were up 11.8% to 2.8 million, international passenger numbers rose 17% to 376,280, and regional passenger numbers fell 13.8% to 146,780.
Capacity, as measured by ASKs, rose 4.2%, says the carrier. Domestic ASKs grew 7.7%, international ASKs rose 0.8% and regional ASKs decreased 19.2%.
The overall passenger load factor grew 3 percentage points to 70.6%. The domestic passenger load factor increased 1.3 percentage points to 71.2%, the international passenger load factor rose 7.2 percentage points to 69.9% and the regional passenger load factor fell 0.01 percentage point to 67.6%.
On the cargo front, overall RFTKs rose 46.5%, says China Eastern. Domestic cargo traffic was up 29%, international cargo traffic grew 56.2% and regional cargo traffic increased 33.1%

Merged China Eastern eyes Shanghai dominance, possible SIA investment

China Eastern Airlines is moving forward with its efforts to recruit a strategic investor as it finalizes the merger process with Shanghai Airlines, according to CEA GM and SAL Chairman Ma Xulun.
"We are quite open to introducing a strategic investor and welcome any strategic investor or financial investor as long as they are interested in promoting development," Ma noted.
An internal source told ATWOnline that the Shanghai-based carrier has been in touch with Singapore Airlines regarding further cooperation, including a possible stake sale [Vous devez être inscrit et connecté pour voir ce lien].
It is noteworthy that Meng Jianmin, deputy director of the state-owned Assets Supervision and Administration Commission, pointed out at this week's ceremony celebrating the CEA/SAL merger that the new CEA "should introduce a proper strategic investor to enhance its management level and reduce its debt ratio, which is as high as 95% now." SASAC is CEA's controlling stakeholder.
Meantime, CEA is progressing with joining an alliance. Chairman Liu Shaoyong revealed that he talked with all three alliances last month. "Currently we are conducting an internal evaluation and hopefully we can announce our decision this month," Ma said. It is widely speculated that CEA prefers SkyTeam [Vous devez être inscrit et connecté pour voir ce lien].
The merged CEA is expected to hold about 50% of the Shanghai market and operate a total fleet of 331 aircraft to 151 destinations. "Shanghai needs a strong Shanghai-based carrier that can take up more than a 50% share of the Shanghai market, as Shanghai is targeting becoming an international aviation hub. The merger between CEA and SAL is an important step toward this target," Shanghai Vice Mayor Ai Baojun noted at the ceremony.

[Vous devez être inscrit et connecté pour voir ce lien] is trying to nudge [Vous devez être inscrit et connecté pour voir ce lien] and Rolls-Royce to provide a winglet modification for the flag-carrier's [Vous devez être inscrit et connecté pour voir ce lien]-300ER fleet, although the relatively small size of its fleet could prove an obstacle.
The airline's fleet of 21 aircraft - of which 13 are in long-haul configuration - are fitted with Rolls-Royce RB211 engines, in contrast to the [Vous devez être inscrit et connecté pour voir ce lien] and General Electric powerplants fitted to almost all other 767s.
BA chief executive Willie Walsh, speaking to ATI at an event in London, said that the airline was "gently pushing" both the airframer and the engine manufacturer for the upgrade.
While there is a supplemental type certificate for winglets on the P&W- and GE-powered 767, the RB211 engines generate a different wing loading, says Walsh.
He wants Boeing to pay for the development, although he says he "understands" that the manufacturer could be reluctant to fund a programme for a limited number of aircraft.
He says that BA's fleet is relatively young, at about 13-14 years, and the 767s could provide at least another six years' service to the carrier.
Winglets would provide a substantial fuel saving, he says, and create a case for retaining the aircraft in the fleet to give BA additional flexibility even as it introduces its intended 767 replacement, the [Vous devez être inscrit et connecté pour voir ce lien].
"Clearly the sooner it's done, the better," he says. "If this [modification] had been available two years ago, we would have done it then."
Qantas operates seven RB211-powered 767s, but the carrier took the twin-jets from the BA fleet. China Eastern Airlines also has a handful of 767s with Rolls-Royce engines.