According to cyber rumors from insider sources, China Southern is mulling the establishment of a subsidiary company that would go by the name — Xiongan Airlines — with an eye to bolstering CZ’s competitive edge at the soon-to-open Beijing new airport

Further details are unknown yet. But the name choice for the rumored subsidiary company is significant as the word Xiongan is known as in Xiongan New Area, a new state-level special economic zone designated by the Chinese central government to advance coordinated development between Beijing, neighboring Hebei Province and Tianjin Municipality. The new area is 100 km south to downtown Beijing, and 60 km south to Beijing new airport

As is common among Chinese carriers, setting up a subsidiary is expected to bring about substantial institutional and financial benefits under current regulatory conditions in China. Just recall Air China’s earlier reported attempt to establish Beijing Airlines as a pax carrier months ago

Apparently Beijing aviation market is soon to usher in an era of head-on-head competition among Chinese carriers aiming to maximize their respective market share therein, owing to the massive opportunities unlocked by Beijing’s new mega-airport

It's real. China Southern has tonight released a public notice, saying it is going to establish a wholly-owned subsidiary—Xiongan Airlines, which would be domiciled in Xiongan New Area, 60 km south to New Beijing Airport, as per the latest Chinese report 雄安航空浮出：南方航空拟出资100亿元，在雄安设立子公司Xiongan Airlines Surfaces with CZ Investing 10 Billion CNY

The investment would be carried out in a phased manner, costing CZ altogether 10 billion CNY worth of money, or approx 1.5 billion USD

Business scope for the new Xiongan Airlines would include passenger and freight transportation, both domestic and regional/international, among a host of other commercial operations

Regarding the rationale for this move, the notice says the establishment of Xiongan Airlines would further help CZ build and operate its Beijing hub, in a bid to boost the implementation of its Guangzhou-Beijing dual-hub strategy

The establishment of Xiongan Airlines is pending governmental approval

Must say this is a profoundly politically-savvy investment from CZ

Will it be an actual CZ owned airline like Xiamen Airlines (MF) or Chongqing Airlines (OQ), or a fake paper airline like Zhuhai Airlines or Shantou Airlines that exists in name only?

I dont understand why?

Loan bubble, aka incentives.

Samrnpage wrote:

I dont understand why?

CZ owns a collection of fake airlines that were setup to take advantage of Govt incentives. Typically, the local Govt will invest a bunch of money that is essentially an interest free loan, in exchange for naming rights to the airline. These airlines exist in name only so the local Govt can claim to have an airline based in their home city airport but they don't exist in reality - the crews are CZ crews, the planes are CZ plane (but maybe painted with the names of the local airline), and the flights are CZ coded and the plane uses CZ call sign. Some of these fake airlines eventually become real (e.g. Chongqing Airlines).

So this latest CZ airline sounds quite a bit like the fake paper airline it has setup before (e.g. Zhuhai Airlines or Shantou Airlines) because the OP mentioned it is named after a redevelopment agency in charge of economic development in the area.

This Xiongan airline thing may look no different than other subsidiaries established by other major Chinese airlines

But (a big but), the announcement of setting up Xiongan Airlines is definitely significant, open to so many more serious interpretations, which must be put under the context of the delicate aviation marketscape surrounding the Chinese capital and adjacent areas that faces the imminent prospect of being thoroughly overhauled owing to the opening of Beijing’s new mega-airport

Or should we say that this stroke of CZ represents a direct powerful response to the extraordinarily unusual move of Air China trying to establish Beijing Airlines as a passenger carrier eying Beijing New Airport earlier in April?

CZ has to play safe now and secure first mover advantage at Beijing New Airport, as the PEK-based competitor CA is notoriously known for its monopolistic leanings by playing dirty under the cloak of a “flagship” carrier, and has been over the years stacking the cards against CZ having greater access to the Beijing market

Let real tough battles begin in the Chinese way

It can get more loan and local government subsidies

And iguess theynust transfer all asset from the beijing division to the new airline

bzcat wrote:

Samrnpage wrote:

I dont understand why?

CZ owns a collection of fake airlines that were setup to take advantage of Govt incentives. Typically, the local Govt will invest a bunch of money that is essentially an interest free loan, in exchange for naming rights to the airline. These airlines exist in name only so the local Govt can claim to have an airline based in their home city airport but they don't exist in reality - the crews are CZ crews, the planes are CZ plane (but maybe painted with the names of the local airline), and the flights are CZ coded and the plane uses CZ call sign. Some of these fake airlines eventually become real (e.g. Chongqing Airlines).

So this latest CZ airline sounds quite a bit like the fake paper airline it has setup before (e.g. Zhuhai Airlines or Shantou Airlines) because the OP mentioned it is named after a redevelopment agency in charge of economic development in the area.

report say the new company will be 100% owned by CZ

bzcat wrote:

Samrnpage wrote:

I dont understand why?

CZ owns a collection of fake airlines that were setup to take advantage of Govt incentives. Typically, the local Govt will invest a bunch of money that is essentially an interest free loan, in exchange for naming rights to the airline. These airlines exist in name only so the local Govt can claim to have an airline based in their home city airport but they don't exist in reality - the crews are CZ crews, the planes are CZ plane (but maybe painted with the names of the local airline), and the flights are CZ coded and the plane uses CZ call sign. Some of these fake airlines eventually become real (e.g. Chongqing Airlines).

So this latest CZ airline sounds quite a bit like the fake paper airline it has setup before (e.g. Zhuhai Airlines or Shantou Airlines) because the OP mentioned it is named after a redevelopment agency in charge of economic development in the area.

Makes sense if that is the case - surely the other Airlines like Air China, China Eastern will complain?

Samrnpage wrote:

bzcat wrote:

Samrnpage wrote:

I dont understand why?

CZ owns a collection of fake airlines that were setup to take advantage of Govt incentives. Typically, the local Govt will invest a bunch of money that is essentially an interest free loan, in exchange for naming rights to the airline. These airlines exist in name only so the local Govt can claim to have an airline based in their home city airport but they don't exist in reality - the crews are CZ crews, the planes are CZ plane (but maybe painted with the names of the local airline), and the flights are CZ coded and the plane uses CZ call sign. Some of these fake airlines eventually become real (e.g. Chongqing Airlines).

So this latest CZ airline sounds quite a bit like the fake paper airline it has setup before (e.g. Zhuhai Airlines or Shantou Airlines) because the OP mentioned it is named after a redevelopment agency in charge of economic development in the area.

Makes sense if that is the case - surely the other Airlines like Air China, China Eastern will complain?

Other airlines do the same thing and especially CA will also have its own one in the new airport

According to a latest public notice by CAAC on its website on Thursday today 关于拟批准中国南方航空雄安航空有限公司筹建的公示, China Southern’s planned establishment of a wholly-owned, Daxing-based subsidiary—Xiongan Airlines—has been granted preliminary approval

The notice says Xiongan Airlines will share the same airline code with China Southern—CZ, and utilize aircraft in the A320 family for domestic freight and passenger service

Resources regarding flights/routes, slots, aircraft quota, parking bays etc will be allocated within the resource system of China Southern, without causing extra resource demand

Given CA’s establishment of Beijing Airlines in a stunningly similar fashion that gained regulatory nod earlier this year, it is particularly noteworthy how China’s giant state-owned enterprises like CA and CZ enjoy ease and rapidity in securing official stamps for setting up new airlines even amid an ever tightening regulatory climate for entry into the airline industry in the country

Zoedyn wrote:

According to a latest public notice by CAAC on its website on Thursday today 关于拟批准中国南方航空雄安航空有限公司筹建的公示, China Southern’s planned establishment of a wholly-owned, Daxing-based subsidiary—Xiongan Airlines—has been granted preliminary approval

The notice says Xiongan Airlines will share the same airline code with China Southern—CZ, and utilize aircraft in the A320 family for domestic freight and passenger service

Resources regarding flights/routes, slots, aircraft quota, parking bays etc will be allocated within the resource system of China Southern, without causing extra resource demand

Given CA’s establishment of Beijing Airlines in a stunningly similar fashion that gained regulatory nod earlier this year, it is particularly noteworthy how China’s giant state-owned enterprises like CA and CZ enjoy ease and rapidity in securing official stamps for setting up new airlines even amid an ever tightening regulatory climate for entry into the airline industry in the country

I mean what .. !! ?? Its a new airline

Actually what is the current status for the area known as Xiongan?

More information are coming out:
https://blueswandaily.com/china-souther ... ubsidiary/
http://usa.chinadaily.com.cn/a/201807/0 ... e0557.html
https://www.ainonline.com/aviation-news ... anned-city

Bascially Xiongnan Airlines is established to serve the new economic zone in Hebei province.

It's another "fake" airline. CZ code, CZ crew, CZ planes. Just with a different title painted on the fuselage and slightly different boarding gate graphics.

By my count, this is the 4th such airline CZ has setup in recent years that operates entirely within CZ with CZ code, CZ crew, and CZ planes:
Shantou Airlines
Zhuhai Airlines
Guizhou Airlines (it has IATA code G4 but is operated by CZ crew and uses CZ planes)
Xiongan Airlines