LEITHEN FRANCIS / SINGAPORE
Carrier plans change of name and base in effort to become a major player by 2010
China's three main airline groups are to face increased competition from fast-growing Hainan Airlines, which is working to cement its status as the country's fourth airline grouping, and Shanghai Airlines, which is also planning long-haul international services.
Airlines sources say Hainan plans to change its name to Grand China Airlines and move its base from Haikou, on southern China's Hainan island, to the national capital Beijing. The change is expected around June. Hainan has long held hopes of being a major international brand by 2010.
Hainan already has a majority stake in Beijing-based China Xinhua Airlines and is looking to merge its own operations with this carrier and another two of its subsidiaries - Changan Airlines and Shanxi Airlines - to create a single airline company with more than 90 aircraft.
A move to Beijing would be significant because the city is an important transfer point for domestic and international passengers, whereas Hainan island is remote, says one industry source in Beijing.
Hainan Airlines, primarily a domestic carrier with a handful of regional international services, says it plans to launch more international flights from Beijing and is seeking approval from the Civil Aviation Administration of China (CAAC) to enter the long-haul passenger market to destinations such as the USA.
The CAAC, meanwhile, recently granted approval for Shanghai Airlines to operate flights to Germany - the first time any carrier other than the country's key operators China Southern Airlines, China Eastern Airlines and Air China has been allowed to operate on long-haul routes. The airline says it is negotiating to let Lufthansa codeshare on some Chinese domestic flights and aims to codeshare on some of the German carrier's European routes.
Shanghai Airlines says it plans to launch services to Germany later this year and is choosing between seven cities, including Frankfurt and Munich. It will also add at least one long-haul aircraft to its fleet.
China Southern Airlines has confirmed its decision "in principle" to acquire 15 Airbus A320s and six A319s, as well as firming up an agreement to add six ERJ-145LRs built by Embraer's Chinese joint venture Harbin Embraer.Source: Flight International
