Airline Finance News - Asia / Pacific.

China has opened up a new air corridor that should significantly reduce flight times to and from Europe. A number of airlines have requested approval to use the airway, which will begin north of Chengdu, a city in southwest China, and continue to the north western region of Xinjiang. At least 30 minutes is saved. Heathrow - Shanghai is presently around 11 hours, with Hong Kong a further 60 minutes on. The route is expected to open to commercial traffic Thursday and initially could benefit up to 110 weekly flights, saving airlines $30 million in fuel costs, according to IATA DG and CEO Giovanni Bisignani. It also is expected to conserve 27,000 tonnes of fuel and eliminate 84,800 tonnes of CO2 emissions. Bisignani said. Just 30% of Chinese airspace currently is available for civil aviation, resulting in a shortage of international routes and air traffic delays at destinations in east China. http://www.iata.org

Apr 10, 2006

Air China

Air China holds its bottom line. Surging operating revenue and a spike in fuel costs offset one another at Air China in 2005, resulting in a "satisfactory" 0.85% rise in annual profit attributable to shareholders to CNY2.41 billion ($299.7 million). Apr 19, 2006

CAAC 

CAAC and the National Development and Reform Commission announced an increase in fuel surcharges on domestic routes of less than 800 km. to CNY30 ($3.74) from CNY20 and on routes greater than 800 km. to CNY60 from CNY40. Increases went into effect April 10 and will last until Oct. 10. Apr 20, 2006

Cathay Pacific

Cathay Pacific flew 5.78 billion RPKs in March, an 8.6% increase over the year-ago month. Capacity climbed 10.5% to 7.5 billion ASKs and load factor fell 1.4 points to 77.1%. Apr 18, 2006

China Airlines

China Airlines reported an after-tax profit of TW$645 million ($19.9 million) in 2005 on record revenues of TW$108.6 billion, according to Taiwan's Government Information Office. Fuel accounted for 45% of the carrier's expenses compared to 27%-28% in recent years. It posted a fourth-quarter loss of TW$362 million but plans to continue expanding its network with the purchase of six aircraft in 2006, comprising four A330s and two freighters. Apr 12, 2006

China Eastern

China Eastern Airlines posted a loss of CNY467.3 million ($58.3 million) in 2005, a reversal from the CNY320.7 million profit reported in 2004, according to press reports. Revenues rose 28.3% to CNY27.45 billion. Apr 11, 2006

China Southern

Expanding China Southern slips into the red. Expenses surpassed revenues in a year in which Guangzhou-based China Southern Airlines continued to absorb China Northern Airlines and Xinjiang Airlines, leading to an annual loss of CNY1.85 billion ($229.8 million) compared to a CNY155 million profit in 2004. Apr 20, 2006

EVA Airways

EVA Airways earned TWD1.33 billion ($41.1 million) last year, a 59% plunge from a TWD3.24 billion profit in 2004, according to a company statement cited by press reports. Pre-tax earnings fell 69% to TWD1.14 billion. "High oil prices are responsible for the drop in net profit in 2005," an airline official told the Associated Press, adding that fuel accounted for 40% of operating expenses. Apr 11, 2006

Japan Airlines

Japan Airlines, which has been subject to scrutiny following several safety-related issues, announced the establishment of a 622-sq.-m., [yen]180 million ($1.5 million) Safety Development Center at Tokyo Haneda. The center will open April 24 and feature exhibits, items and documentation related to past incidents and accidents. Apr 20, 2006

Qantas, Emirates Airlines

Interest in airlines in Indonesia appears to be building. Last month, Qantas flagged interest in Adam Air and yesterday Bisnis was quoting Garuda Indonesia President Director Emirsyah Satar as stating that Emirates is interested in forging an alliance. "Emirates Airlines is one party interested in us, but there are still no concrete plans," he told the Indonesian newspaper. Previously, Lufthansa was inked to the financing of a rescue of Garuda. The national airline of Indonesia has reduced its debt by half over the last five years but this is not as fast as had been planned, with significant debt due to mature shortly. The problems have not been confined to Garuda, with four airlines--Star Air, Bayu Air, Bouraq and Bali Air--ceasing operations this year. Apr 10, 2006

Virgin Blue

Virgin Blue ownership to change as Patrick accepts Toll buyout. The Australian airline landscape is set for some dramatic changes after the country's dominant port operator, Patrick Corp., which has a 62.4% stake in Virgin Blue, accepted Friday a A$6.20 billion ($4.52 billion) takeover bid from Australia's Toll Holdings (ATWOnline, August 24, 2005). Apr 17, 2006