carnoc
Posts: 758
Joined: Wed Oct 17, 2001 3:15 pm

China's "Big Three" To Become "Even Bigger Two"?

Thu Jan 11, 2007 4:18 pm

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.

Further information available at http://en.carnoc.com/list/1/1645.html

Regards.
 
B2443
Posts: 587
Joined: Sat Jul 03, 2004 2:28 am

RE: China's "Big Three" To Become "Even Bigger Two"

Thu Jan 11, 2007 11:23 pm

Quoting Carnoc (Thread starter):
deal between China Eastern and China Southern is logical

no kidding. CA does not want any of BS from MU/CZ. CA needs to emarge itself from the bunch as a reputable airline. With CX's help, they may pull it off. MU/CZ are just hopeless.
 
MaverickM11
Posts: 15252
Joined: Thu Apr 06, 2000 1:59 pm

RE: China's "Big Three" To Become "Even Bigger Two"

Fri Jan 12, 2007 12:08 am

How 'bout not ordering aircraft like a drunken sailor for a change?  Silly
E pur si muove -Galileo
 
aa1818
Posts: 1516
Joined: Sat Feb 04, 2006 2:03 am

RE: China's "Big Three" To Become "Even Bigger Two"

Fri Jan 12, 2007 12:14 am

Anyone has fleet info for the big three?
Also I thought Air China was opting for Star Alliance...with te CX co-operation would they lean more towards OneWorld now??

AA1818
“The moment you doubt whether you can fly, you cease for ever to be able to do it.” J.M. Barrie (Peter Pan)
 
PanAm747
Posts: 4713
Joined: Mon Mar 01, 2004 4:46 am

RE: China's "Big Three" To Become "Even Bigger Two"

Fri Jan 12, 2007 5:33 am

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?
Pan Am:The World's Most Experienced Airline - P(oor) S(ailor's) A(irline): San Diego's Hometown Airline-Catch Our Smile!
 
carnoc
Posts: 758
Joined: Wed Oct 17, 2001 3:15 pm

RE: China's "Big Three" To Become "Even Bigger Two"

Fri Jan 12, 2007 8:47 am

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.

Regards.
 
jimyvr
Posts: 1597
Joined: Wed Nov 01, 2006 1:08 pm

RE: China's "Big Three" To Become "Even Bigger Two"

Fri Jan 12, 2007 8:51 am

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.
1000 - 01MAR07 | http://airlineroute.blogspot.com/

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