Air China
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- Not to be confused with China Airlines, the national airline of the Republic of China (Taiwan).
| Air China 中国国际航空公司 Zhōngguó Guójì Hángkōng Gōngsī |
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|---|---|---|
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| IATA CA |
ICAO CCA |
Callsign AIR CHINA |
| Founded | 1988 | |
| Hubs | ||
| Focus cities | ||
| Frequent flyer program | Air China Companion or Phoenix Miles | |
| Member lounge | VIP Lounge | |
| Alliance | Star Alliance | |
| Fleet size | 216 (+166 orders,10 options) incl. cargo | |
| Destinations | 185 | |
| Parent company | China National Aviation Holding Company | |
| Headquarters | Beijing, People's Republic of China | |
| Key people | Kong Dong, Chairman Cai Jianjiang, President |
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| Website: airchina.com.cn/en/index.shtml | ||
Air China Ltd (SEHK: 0753, LSE: AIRC, SSE: 601111) (simplified Chinese: 中国国际航空公司, Pinyin: Zhōngguó Guójì Hángkōng Gōngsī, literally "China International Aviation Company", abbreviated 国航) is the People's Republic of China's state owned and second-largest commercial airline after China Southern Airlines. It is the flag carrier and the only airline in the world to fly the national flag on its entire fleet. Its logo consists of a phoenix in the form of the acronym VIP, and "Air China" in both English and Chinese, which was autographed by Deng Xiaoping. It operates 5,090 flights each week worldwide and is the 18th largest airline in the world by fleet size.
Air China's main hubs are Beijing Capital International Airport, Chengdu Shuangliu International Airport and Shanghai Pudong International Airport, with other focus cities at Hangzhou Xiaoshan International Airport, Chongqing Jiangbei International Airport, Tianjin Binhai International Airport and Hohhot Baita International Airport.[1] Air China currently flies to approximately 120 destinations; the most destinations from its own Beijing hub.
The airline flew 33.97 million passengers in 2006, with a passenger load factor of 75.9%. In the same year, it made a profit of 2.7 billion yuan, with an operating revenue of 44.9 billion yuan and total expenses standing at 42.4 billion yuan.[2]
It is the 4th largest airline in Asia, 5th largest in the world in terms of domestic cargo traffic and 17th largest airline in the world by terms of fleet size.[citation needed]
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[edit] History
[edit] Beginning
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Air China was established on July 1, 1988. Its formation was a result of the government's decision to split the operating divisions of Civil Aviation Administration of China (CAAC) into separate airlines. [3] The CAAC was restructured in late 1987 and divided into six airlines, namely Air China, China Eastern, China Southern, China Northern, China Southwest, and China Northwest. Air China, based in Beijing, was given chief responsibility for intercontinental flights, and took over the CAAC's long haul aircraft (Boeing 747s, 767s, and 707s, as well as medium-haul 737s) and routes when it was granted its autonomy on July 1, 1988.[citation needed]
At the time of its launch 1988, Air China had 6,000 employees and served 31 international and 30 domestic destinations. It was China's largest airline company and the national flag carrier. In 1989, Air China posted a net profit of $106 million on revenues of $383 million. In that same year, Air China entered a joint venture with Lufthansa, which provided 40 percent of the capital, or $220 million, to create the Beijing Aircraft Maintenance Center (Ameco Beijing). It specialized in the upkeep of the Boeing aircraft that comprised Air China's fleet.[4] The venture was expanded with another $218 million (¥n1.2 billion) in 1992. Ameco Beijing employed nearly 4,000 people, a little fewer than 50 of them from Lufthansa.[5] Air Transport World reported the company preferred to source its needs through joint ventures due to the country's lack of hard currency.[6] Its Beijing Air Catering was 40 percent owned by a large Hong Kong caterer.[7]
[edit] Deregulation
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Further deregulation of the aviation business took place in 1994, enabling foreign investment in airports and facilitating the import of aircraft built outside mainland China.[8] By 1996 the country had 108 airports with scheduled airline services and around 30 different airlines. In 1997, Air China reported sales of $1.38 billion (¥n11.5 billion). The fleet had grown to 65 aircraft and the carrier was flying 144 routes overall. By October 1997, Air China was planning a public stock offering.[9] China Eastern Airlines and China Southern Airlines had listed on the Hong Kong and New York exchanges earlier in the year. Air China delayed plans based due to poor financial performance and a downturn in business caused by the Asian financial crisis. About 16 million passengers flew Air China in 1998.[citation needed]
Early in 2000, Air China teamed with China National Aviation Co. Group (CNAC), the CAAC's Hong Kong-listed commercial arm, to establish a Hong Kong branch (95% owned by Air China). Direct flights to London from Hong Kong soon began. Air China faced competition at its home base from Air France, which increased its four flights a week to Beijing, begun in 1997, to daily service. British Airways also wanted to increase its frequencies (it was operating 18 flights a week to China).[10]
[edit] Consolidation
In mid-2000, the CAAC repeated earlier calls for a consolidation of the ten airlines it controlled into three.[11] (Air China, China Southern, and China Eastern were to each acquire the smaller airlines.) However, the CAAC blocked a proposed merger in September 2000 between Air China and China Southern on anti-competitive grounds.[12]
In January 2001, the CAAC's ten airlines announced they had agreed on a merger plan.[13] Air China was to acquire China Southwest Airlines and China International Airlines, the country's fourth strongest domestic airline. This was to create a group with assets of ¥n56 billion (HK$ 52.5 billion), including 118 aircraft.[14] On October 28, 2002, Air China consolidated with China National Aviation Corporation and China Southwest Airlines.[citation needed]
During 2004, Air China absorbed Zhejiang Airlines (a subsidiary of CNAC). On December 15, 2004 the company listed its shares on the Hong Kong and London Stock Exchanges. Air China has shareholdings in Air China Cargo (51%), Air Macau (51%) and also holds majority shares of Shandong Airlines. On June 9, 2006, a joint announcement revealed a new shareholding structure in which Air China will acquire a 17.5% stake in Cathay Pacific, while the latter will own 20% of the former.[citation needed]
[edit] Operations
Air China operates in four segments:[15]
- Airline Operations segment, which comprises the provision of air passenger and air cargo services;
- Engineering Services segment, providing aircraft engineering services, such as aircraft maintenance, repair and overhaul services;
- Airport Terminal Services segment, offering ground services that include check-in services, boarding services, premium class lounge services, ramp services, luggage handling services, loading and unloading services, cabin cleaning and transit services,
- Others segment, which comprises the provision of air catering services and other airline-related services.
[edit] Subsidiaries
- Air China Cargo, flight logistics company
- Air China Business Jet, business jet company
[edit] Financial performance
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For fiscal year ending December, 2006:
- Sales: $5,747.4M
- One year growth: 21.1%
- Net income: $422.7M
- Income growth: 38.1%
[edit] Destinations
Air China's route network extends from China to Asia, Middle East, Western Europe, and North America. The majority of the routes operate from its Beijing hub.
It currently operates a significant number of Asian, Australian and European destinations from Shanghai Pudong International Airport. This will also extend to North America when it adds an additional San Francisco service, complementing its service from Beijing and complementing United Airlines codeshares on the route. It also has some international routes operating and connecting from Chengdu Shuangliu International Airport, Chongqing Jiangbei International Airport, Dalian Zhoushuizi International Airport, Dubai International Airport, Hangzhou Xiaoshan International Airport, Kunming Wujiaba International Airport, Madrid Barajas Airport, Nanning Wuxu International Airport and Xiamen Gaoqi International Airport.
Air China is upgrading these routes to larger aircraft from 2008/2009, Beijing-Delhi to A340 from 767-300ER, Beijing-Dubai to A330-200 from 767-200ER also delinked from Athens which is now routed as Beijing-Paris-Athens with A330-200, Beijing-Chengdu-Karachi to 757 from A319 with new routing replacing Urumqi stopover and Beijing-Stockholm to A330-200 from 767-200ER.
| Route | Aircraft | Frequency |
|---|---|---|
| Beijing-Paris | A330-200 | 1 Weekly |
| Beijing-Dubai | A330-200 | 4 Weekly |
| Beijing-Vancouver | A330-200 | 7 Weekly |
| Beijing-Xiamen-Jakarta | B737-700 | 3 Weekly |
| Beijing-San Francisco | B747-400 Combi | 7 Weekly |
| Beijing-Chengdu-Karachi | B757-200 | 2 Weekly |
| Beijing-Munich | A330-200 | 4 Weekly |
| Beijing-Los Angeles | B747-400 Combi | 7 Weekly |
| Beijing-Frankfurt (CA 965/6) | A330-200 | 7 Weekly |
| Beijing-Stockholm | A330-200 | 2 Weekly |
| Beijing-Sydney | A330-200 | 4 Weekly |
| Beijing-Shanghai-Melbourne | A330-200 | 4 Weekly |
| Beijing-Delhi | A340-300 | 3 Weekly |
| Beijing-Shanghai-Sendai | B737-800 | 4 Weekly |
| Beijing-Kunming-Yangon | B737-700 | 3 Weekly |
| Chengdu-Lhasa-Kathmandu | A319-100 | 7 Weekly |
| Chengdu-Bangkok | B737-600 | 5 Weekly |
On December 10, 2006, it made its first flight to São Paulo (via Madrid), which became its first South American destination. This was the airline's longest direct flight. The service began with the Boeing 767-300 aircraft but because of its popularity, the service has been upgraded to A330-200. Air China suspended service to São Paulo in September 2008, the airline planned to resume flights on June 28, 2009 but those plans have been shelved.
Routes to Australia, Frankfurt, Madrid currently operated by Airbus A330-200 may be replaced by Boeing 787 Dreamliners. The Boeing 787 Dreamliners will be used on flights to Toronto and Washington, D.C. when they are launched.
Air China is launching many flights to European destinations, as it believes these services will become very popular in the coming years. The airline has already stated they are happy to make losses on these routes at first, but hopefully they will build up a good brand image in Europe, so as to make them a premier choice for those flying to China.
[edit] Cargo and passenger service expansion plans
Air China is looking at the United States for international cargo and passenger service expansion. A June 17, 2008 St. Louis Beacon reported that Air China planned to establish a cargo hub at Lambert St. Louis International Airport.[16][17] The United States Department of Commerce allowed expansion of the foreign trade zone near Lambert airport on February 13, 2009.[18]
[edit] Fleet
[edit] Passenger
As of June 2009, Air China fleet includes the following aircraft:
| Aircraft | Total | Orders | Options | Passengers (First/Business/Economy) |
Routes | Notes |
|---|---|---|---|---|---|---|
| Airbus A319-100 | 33 | 0 | 0 | 128 (8/120) | Domestic, Asia | |
| Airbus A320-200 | 5 | 22 | 0 | 158 (8/150) | Domestic, Asia | |
| Airbus A321-200 | 12 | 15 | 0 | 185 (16/169) | Domestic | |
| Airbus A330-200 | 20 | 0 | 0 | 283 (12/271) 240 (36/215) |
Domestic, Sydney, Melbourne, Frankfurt, Paris, Vancouver, Madrid, Hong Kong, London-LHR (seasonal), Stockholm, Dubai, Munich, Rome |
Features new business class Two in Star Alliance Livery (B-6091, B-6093) Special Livery "Capital Pavilion" (B-6076) and "Forbidden Pavilion" (B-6075) |
| Airbus A330-300 | 0 | 20 | 0 | ??? (??/???) | Domestic, Sydney, Melbourne, Frankfurt, Paris, Vancouver, Madrid, Hong Kong, London-LHR (seasonal), Stockholm, Dubai, Munich, Rome |
Features new business class |
| Airbus A340-300 | 6 | 0 | 0 | 255 (8/28/219) | Domestic, Milan, Madrid, Vancouver, Frankfurt, Paris-CDG, London-LHR (seasonal) | Features new first and business class. To be replaced by Boeing 777-300ER. |
| Boeing 737-300 | 15 | 0 | 0 | 128 (8/120) | Domestic, Fukuoka, Ho Chi Minh, Osaka-Kansai, Pyongyang. | To be replaced by Boeing 737-800. |
| Boeing 737-700 | 20 | 0 | 0 | 128 (8/120) | Domestic, Asia | Winglets to be installed by end of 2009. |
| Boeing 737-800 | 52 | 68 | 0 | 167 (8/159) | Domestic, Asia | Winglets to be installed by end of 2009. |
| Boeing 747-400 | 4 | 0 | 0 | 344 (10/42/292) 346 (10/42/294) |
Domestic, Shanghai, Frankfurt, New York-JFK | Features new first and business class. |
| Boeing 747-400M | 10 | 0 | 0 | 280 (10/24/246) | Los Angeles, San Francisco, Paris-CDG, Frankfurt, London-LHR (Seasonal) | Being retrofitted to feature new first and business class. |
| Boeing 757-200 | 13 | 0 | 0 | 200 (8/192) | Domestic, Asia | |
| Boeing 767-300 | 4 | 0 | 0 | 227 (10/26/189) | Southeast Asia | To be phased out by 2010 To be replaced by Airbus A330-300 |
| Boeing 767-300ER | 3 | 0 | 0 | 230 (30/200) | Delhi, Singapore, Moscow | To be phased out by 2010 To be replaced by Airbus A330-300 |
| Boeing 777-200 | 10 | 0 | 0 | 345 (49/296) 314 (12/49/253) |
Domestic, Seoul-ICN, Tokyo-NRT, Singapore, Moscow | |
| Boeing 777-300ER | 0 | 15[19][20] | 0 | ??? (??/??/???) | Los Angeles, New York-JFK, San Francisco, Frankfurt, London-LHR | Entry: 2011. It will be delivered in a three class configuration featuring Air China’s new First & new Business class as well as 34’ pitch economy. |
| Boeing 787-8 | 0 | 15 | 0 | ??? (0/??/???) | Sydney, Toronto, Washington-IAD, Madrid, Frankfurt | Entry into service: Fourth Quarter 2009 |
| TOTAL | 211 | 155 | 0 |
[edit] Cargo fleet
As of January 2008, Air China's average fleet age was 7.8 years old. [21]
Air China has two other business jets: one Gulfstream IV and one Bombardier Learjet 45.
[edit] Aircraft orders
Air China has signed agreements with:
- Airbus, on July 21, 2005, for the purchase of 20 Trent 700 powered Airbus A330-200 aircraft, scheduled for delivery from May 2006.
- Boeing, on August 8, 2005, for the purchase of 15 Boeing 787 aircraft for delivery from mid-2008 to end 2010. Sources also report that Air China may even become the 2nd carrier to take delivery of the Boeing 787-8, shortly after All Nippon Airways.
- Airbus, on June 2006, for the purchase of 24 Airbus A320s. These aircraft are to be delivered between 2007 and 2010. Airbus had previously stated that Air China were to be customers for the A380. Currently, Air China has no plans to add the Airbus A380 to their fleet, citing that only one type of jumbo jet is needed. However, Air China has not ruled out the purchase of the A380 in their future plans, and may eventually place an order for the type.
- Airbus, in 2008, for the purchase of 20 Airbus A330 aircraft, scheduled to be delivered from 2011 - 2014 and meet expected growth and demand. This will expand capacity by up to 16.5% and replace aging Boeing 767 equipment.
- Boeing, on July 16, 2008, purchased a total of 45 Boeing aircraft comprising of 15 Boeing 777-300ERs and 30 Boeing 737-800s, scheduled for delivery from 2011-2015 and allowing for a capacity expansion of 35%. [3]
While Boeing's orders page for 2006 reflects this order, there have been no formal news releases indicating the following:
- Boeing, on January 17, 2006, for the purchase of 10 Boeing 737-800 aircraft for delivery from end 2007 to end 2008. [4]
- Airbus, on November 14, 2008, for the purchase of 20 Trent 700 powered Airbus A330-300 aircraft.
- Boeing, On November 14, 2008, for the purchase of additional 30 Boeing 737-800 and 15 777-300ER aircraft. [5]
[edit] Previously operated
[edit] Passenger fleet
- Antonov An-12 (1988 – 1997)
- Boeing 707 (1988 – 1996)
- Boeing 747SP (1988 – 1999)
- BAe 146 (1992 – 2003)
- Hawker Siddeley Trident (1988 – 1994)
- Tupolev Tu-154B (1988 – 1997)
- Xian Y-7 (1989 – 1996)
- Boeing 737-600 (2001 – 2009)
[edit] Cargo fleet
- Lockheed L-100 Hercules (1988 – 2001)
[edit] Codeshare agreements
Air China officially joined Star Alliance (SA) on December 12, 2007. This move greatly expanded the Alliance's presence in China.
With the Alliance's "Under One Roof" initiative, all Star Alliance members have moved their operation to the Terminal 3 of the Beijing Capital International Airport, Air China's main international hub. This new terminal is divided into 3 sections, with T3C housing all domestic flights operated by Air China and Shanghai Airlines and T3E housing all Star Alliance international flights. The two sections are connected by a high-speed inter-terminal train.
As of April 2008, Air China had codeshare agreements with the following airlines:
- Air Canada (SA)
- Air Macau
- Air New Zealand (SA)
- Alitalia
- All Nippon Airways (ANA) (SA)
- Asiana Airlines (SA)
- Austrian Airlines (SA)
- Avianca
- British Airways
- Cathay Pacific Airways
- China Eastern Airlines
- China Southern Airlines
- Dragonair
- Finnair, flights operated by Finnair
- Korean Air
- Kuwait Airways, flights operated by Air China on the Kuwait-Karachi-Beijing route
- LOT Polish Airlines (SA)
- Lufthansa (SA)
- Qatar Airways, all routes operated by Qatar Airways
- Scandinavian Airlines System (SAS) (SA)
- Shandong Airlines (Air China subsidiary)
- Shanghai Airlines (SA)
- Turkish Airlines (SA)
- United Airlines (SA)
- US Airways (SA)
- Virgin Atlantic Airways
[edit] Former codeshare agreements
- Northwest Airlines (began 1996, terminated in 2002): Detroit to Beijing and Shanghai (operated by Northwest Airlines). After NWA terminated non-stop flights to China, Air China decided to terminate the codeshare between the two airlines.
- Qantas (began 2006, terminated 2008): Blocked Codeshare on Qantas' Beijing-Sydney route. After Air China initiated non-stop Beijing-Sydney service, Air China has terminated the Qantas Codeshare.
- Varig (suspended in 2006 due to collapse): Beijing to Frankfurt (operated by Air China) and Frankfurt to São Paulo (operated by Varig). However, Air China itself began flying to São Paulo via Madrid in December 2006. The route was suspended in September 2008.
[edit] Phoenix Miles
Phoenix Miles (国航知音 - Guo Hang Zhi Yin) is the frequent flyer program for Air China. This is the first frequent flyer program to be launched in China. It was designed to reward frequent flyers traveling internationally and domestically with Air China and its partner airlines.[22]
Members earn mileage points for travel on Air China and its affiliated partner airlines. Flight mileage is awarded to members flying with Air China. Partner mileage is awarded to members traveling with partner airlines of Air China. The companion card may be upgraded to VIP status. There are special redemption rates for VIP members – Gold card members and Platinum card Members.
- Gold card members: members will earn 25% mileage bonus on credited flight mileage.
- Platinum card members: members will earn 50% mileage bonus on credited flight mileage.
[edit] Partners
In addition to its Star Alliance partners, Air China has frequent flyer partnerships with the following airlines:
[edit] Incidents and accidents
- On April 15, 2002, Flight 129, a Boeing 767-200ER from Beijing to Busan, South Korea, crashed into a hill while trying to land at Gimhae International Airport during inclement weather, killing 128 of the 166 people on board. This is the only accident with fatalities involving Air China.
- On July 1, 2007, the nose gear of an Air China Boeing 767-200ER was accidentally retracted while the aircraft was at a gate at Beijing Capital International Airport. There were 2 injuries onboard and no fatalities.[23]
[edit] See also
[edit] References
- ^ Introduction of Air China
- ^ "Air China 2006 profits get a boost on strong passenger numbers." Channel News Asia. March 20, 2007. Retrieved on June 10, 2009.
- ^ "Directory: World Airlines". Flight International: p. 55. 2007-03-27.
- ^ "Air China Launches New Service, Works on Image," USA Today, October 9, 1991, p. 8B.
- ^ Bangsberg, P.T., "Lufthansa, China Plan More Funds for Aircraft Maintenance Venture," Journal of Commerce, June 24, 1992, p. 2B.
- ^ Vandyk, Anthony, "Air China: New Name, New Heights," Air Transport World, February 1991, p. 54.
- ^ Flynn, Ann Amelia, "China's Airlines Take Wing," China Business Review (Washington), May/June 1993, p. 14.
- ^ "Air China to Stand Alone," Airfinance Journal, March 1995, p. 8.
- ^ Harding, James, "Air China Plans Overseas Float," Financial Times (London), October 15, 1997.
- ^ Lo, Joseph, "Star Alliance Beckons Air China," South China Morning Post, Bus. Sec., May 24, 2001, p. 2.
- ^ Chang, Leslie, "China Intends to Merge 10 Airlines Into Three," Wall Street Journal, July 24, 2000, p. A21.
- ^ "CAAC Blocks China Southern Merger with Air China," AFX-Asia, September 28, 2000.
- ^ Ng, Eric, "Air China Set to Announce Lead Bank for Listing," South China Morning Post, Bus. Sec., July 16, 2001, p. 4.
- ^ Holland, Tom, "China Break-In," Far Eastern Economic Review, October 25, 2001, p. 41.
- ^ "Air China Limited (Hong Kong Stock)." Reuters. Retrieved on June 10, 2009.
- ^ ""GATEWAY TO THE EAST" ST. LOUIS SEEKS TO BE CHINA'S FREIGHT AND COMMERCIAL HUB." St. Louis Commerce Magazine. June 2008. Retrieved on June 10, 2009.
- ^ "Commission looks to bring Chinese air freight to St. Louis." St. Louis Business Journal. January 19, 2009. Retrieved on June 10, 2009.
- ^ Binns, Evan. "Lambert foreign trade zone expanded." St. Louis Business Journal. February 16, 2009. Retrieved on June 10, 2009.
- ^ [1]
- ^ [2]
- ^ Air China fleet age
- ^ "Phoenix Miles Main Page (English)" – about us
- ^ Photo: Air China, Boeing 767-2J6/ER, Beijing – Capital (PEK / ZBAA), China, July 1, 2007, B-2553 (cn 23744/155) Nose landing gear was accidentally retracted during boarding at gate 209. Two people were injured on board.The plane was badly damaged and with a highly responsiable attutide towards its passengers,Air China didn't repair it but retired it.
[edit] External links
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Wikimedia Commons has media related to: Air China |
- Official website
- Official website (Chinese)
- Air China Worldwide
- Air China Business Jet
- Air China Development Corporation
- Air China fleet details
[edit] Profiles
- Company profile Reuters
- Company profile Google Finance
- Company profile Yahoo! Finance
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