Tag Archives | Air china

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The fall of East Star’ Lan Shili and Shenzhen’s Li Zeyuan

Normally, a jail term for tax evasion for the owner of East Star Airlines, a privately-owned Chinese carrier that went bankrupt in August last year, would not be of too much interest.But Lan Shili’s case comes amid an attempt by the Chinese authorities to force its carriers to consolidate, and Air China’s interest in expanding […]

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Air China continues to squeeze its domestic rivals

“Air China is like a python – it will slowly squeeze the competition in China until it becomes the country’s biggest carrier,” an industry official told me last month. Two events over the last month point to that coming true.Today, Air China announced that it was buying a majority stake in Shenzhen Airlines (after several […]

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The NYT is reading too much into Air China’s A320 order

First up, let me say that the New York Times is one of my favourite newspapers. But when one of my colleagues brought this to my attention, I can’t help but think that the NYT put two and two together and came up with five.Its conclusion that Air China’s order of 20 Airbus A320s has […]

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Looking beyond Air China’s profits

Air China reported a net profit of 2.82 billion yuan ($412.8 million) in the six months to 30 June, but that is not an accurate reflection of the real situation at the carrier.Chinese airlines depend mainly on domestic passenger traffic and Air China’s domestic RPKs, which account for just over 60% of its total RPKs, […]

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Air China the big winner from Cathay deal

Air China is likely to emerge as the biggest winner in CITIC Pacific’s sale of its stake in Cathay Pacific, with the Beijing-based carrier getting a bigger share of the Hong Kong market and help against competition in the mainland.The Chinese state-owned carrier took a 17.5% stake in Cathay in 2007 and increased this to […]

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Chinese carriers’ rising stars

  Since the stock market rally started in late March, many publicly-listed Chinese carriers have experienced a 50% increase in their share price, making Chinese carriers the best performing airline stocks in the world. But what is the reason for this increase? It seems a bit unusual considering other airline stocks are still suffering due […]

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Chinese consolidation talks begin

It’s happening. After months of speculation that more consolidation is set to come to the Chinese airline market, Air China has confirmed that its parent company is in talks to acquire some or all of much smaller East Star Airlines. (For more see the story below from our on-line news service Air Transport Intelligence). East […]

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