NICHOLAS IONIDES / HAIKOU
Carrier plans ambitious expansion in bid to become China's fourth-largest airline
Hainan Airlines is in talks to acquire 50- and 70-seat regional jets as well as Boeing 737 freighters. The Chinese carrier plans to expand its fleet to more than 100 aircraft from 66 within five years.
Executive president Li Weijian says in an interview in Haikou, Hainan Island, that discussions are being held with Fairchild Dornier as well as Bombardier and Embraer. Chairman Chen Feng met Embraer officials in Brazil last week. "Fifty- and 70-seaters are in our thinking, and I would like them as early as possible," Li says.
The carrier expects to operate the larger regional jets from 2003, he adds. In 1999 it became the first Chinese airline to operate regional jets on scheduled services, acquiring 19 Fairchild Dornier 328JETs, and taking options on 20 more.
The 19 from the firm order have all been delivered. Five are operating with Hainan Airlines itself, while nine are with subsidiary Changan Airlines and five are with fellow subsidiary Shanxi Airlines.
Earlier this year the carrier agreed to firm up the 20 328JET options and acquire one more, lifting its fleet of the type to 40. A final Chinese Government import licence is still being awaited, Li says, although this could come following German Chancellor Gerhard Schroeder's visit last week to China.
Hainan Airlines Group now includes Hainan Airlines, Changan Airlines, Shanxi Airlines, China Xinhua Airlines and business jet charter operator Deer Jet, which together operate 66 aircraft.
Li says there are grand expansion plans, as it seeks to establish itself firmly as the country's fourth-largest airline grouping.
It already claims to hold that title, behind the three majors China Southern Airlines, Air China and China Eastern Airlines. "Within five years, we want to expand our fleet up to at least 100 aircraft, including big and small," says Li.
In addition to the 21 extra 328JETs for which it is seeking final approval, the carrier has 10 Boeing 737-800s on order for delivery through 2003. It is also acquiring three Boeing 767-300ERs between September and November next year - its first wide-bodies - and is seeking government approval to add seven more 767s over the following three years.
Hainan meanwhile is in talks to lease three 737 freighters as part of a move into dedicated cargo operations, Li says.
Source: Flight International