Carnoc From China, joined Oct 2001, 875 posts, RR: 0 Posted (7 years 9 months 2 weeks 2 days 6 hours ago) and read 3088 times:
Centre for Asia Pacific Aviation notes that reports are circulating in China that the government is considering a new round of airline consolidation, with an intention to consolidate the big three airlines (Air China, China Southern and China Eastern) into two mega carriers.
"Profitability of the big three came under pressure in 2006, mainly due to higher fuel costs, but Shanghai's China Eastern also struggled under the weight of a bloated cost structure from the last round of consolidation initiated in 2002," stated the Centre's Executive Chairman, Peter Harbison.
China Eastern unsuccessfully sought a foreign partner in 2006, so attention could be shifting to a domestic solution.
According to Mr Harbison, "a deal between China Eastern and China Southern is logical, as the latter retains significant operations in Guangzhou and Beijing, but is facing intense competition from the powerful Air China-Cathay Pacific combination".
Air China-Cathay Pacific are also planning to establish a Shanghai-based cargo venture in coming months.
PanAm747 From United States of America, joined Feb 2004, 4242 posts, RR: 8
Reply 4, posted (7 years 9 months 2 weeks 1 day 16 hours ago) and read 2552 times:
Ironic - all the airlines started out life as CAAC (Civil Aviation Administration of China), which was broken up to promote competition. Now they're being merged back into a small number of mega-carriers.
Full circle, huh?
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Carnoc From China, joined Oct 2001, 875 posts, RR: 0
Reply 5, posted (7 years 9 months 2 weeks 1 day 13 hours ago) and read 2433 times:
Quoting AA1818 (Reply 3): Also I thought Air China was opting for Star Alliance...with te CX co-operation would they lean more towards OneWorld now??
To the best of my understanding, Air China will gain Star Alliance's full membership by mid-2007 if everything goes well (though they do have a lot more to do before membership could be awarded), and Air China is very keen in making that happen. The partnership with Cathay Pacific will solely be strategic partnership on certain aspects such as sales, training, marketing and so on, although there had been a few conflicting issues with Star Alliance due to Air China's partnership with Cathay Pacific, but the Airline is currently working on resolving these issues with all concerned parties.
Jimyvr From , joined Dec 1969, posts, RR:
Reply 6, posted (7 years 9 months 2 weeks 1 day 13 hours ago) and read 2423 times:
This report has been on and off, in fact, this english report left out the possible deal between Shanghai city Government and the central government to swap controls, in order to get Shanghai Airlines take over China Eastern.