Company Watch - Air China.

New York (AirGuideBusiness - Company Watch) Aug 30, 2009

Chinese flag carrier Air China said Tuesday profit more than doubled from a year earlier, boosted by lower fuel costs, fuel-hedging gains and growth in domestic travel demand. But the company said its earnings may be under pressure in the second half as the global financial crisis continues to depress international air travel and cargo shipments and as price competition among domestic carriers increases. Aug 28, 2009

Air China's profits after tax more than doubled in the first half of 2009, with fuel hedging gains helping to overcome large drops in passenger and cargo revenues amid a "cold winter for the aviation industry". The Beijing-based carrier says that it made 2.82 billion yuan (USD 412.8 million) in the six months to 30 June, up 169 percent from the 1.05 billion yuan profit it reported in the first half of 2008. Turnover, however, fell by 2.44 billion yuan to 23.11 billon yuan at the Star Alliance member. This came as air passenger revenues fell by 1.48 billion yuan to 19.24 billion yuan, and air cargo revenues decreased by 1.69 billion yuan to 1.97 billion yuan. This was overcome by a 42.51 percent drop in jet fuel costs to 6.1 billion yuan, and Air China also made a 1.45 billion yuan gain from fuel hedging. This helped the carrier to report an operating profit of 2.82 billion yuan, reversing an 83,715 yuan net loss from a year before. Aug 26, 2009

Air China and Hong Kong's Cathay Pacific hope to conclude a cargo joint venture deal by the end of the year. The two carriers first announced plans for the JV in 2006. An Air China spokeswoman says the deal "should have been done earlier", but adds that the carriers are targeting the end of this year to conclude a deal. Aug 27, 2009

China Equity Group yesterday revealed additional details of its plan to re-launch East Star Airlines, including its intention for it and its partners to hold 70 percent-80 percent of the reorganized carrier with debtors holding the remainder. East Star Group currently owns the largest share (40 percent) while GECAS, China National Aviation Fuel Co. and several airports are the debtors. At a hearing yesterday in Wuhan local court, government officials continued to insist that East Star should go bankrupt since CEG's planned investment of CNY200-CNY300 million (USD 29.2-USD 43.9 million) is "too little" and the initial fleet of just two or three aircraft is insufficient. CEG Chairman Wang Chaoyong said the company can acquire an additional CNY300-CNY500 million in capital through debt financing. He also said CEG will sign cooperation agreements with other Chinese airlines covering the lease of aircraft and flight crew, which may involve the transfer of stakes in East Star. "We are keeping in touch with Sichuan Airlines on this issue," he said. The reorganized East Star is expected to have a new name and logo and may introduce a foreign strategic investor if CEG's re-launch plan is approved this week by the Wuhan court. Aug 26, 2009

China Southern Airlines and Air France have expanded their codeshare agreement to another six routes. Air France will place its code on China Southern's Guangzhou-Kunming, Guangzhou-Xiamen and Guangzhou-Wenzhou services, say the SkyTeam alliance members. China Southern's code will be placed on Air France's services on the Paris-Madrid, Paris-Milan and Paris-London routes, they add. Aug 28, 2009

China Southern Airlines has ordered avionics suites from Rockwell Collins for its 10 Airbus A330s on order. Rockwell Collins says that the aircraft will use its weather radar, a GLU-920 multi-mode receiver and advanced sensors. Aircraft deliveries are due to start in March, it says. According to Flightglobal's ACAS database, the 10 aircraft are A330-200s. Aug 25, 2009

Rockwell Collins said China Southern Airlines selected its MultiScan weather radar, GLU-920 Multi-Mode Receiver and advanced sensors for 10 A330s, with deliveries scheduled to start in March 2010. Aug 25, 2009

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