Chinese Aviation Industry
- Thread starter FriedRiceNSpice
- Start date
by78
General
Likely very recent. It has only appeared in the past week or maybe month, and the water gathering and dumping apparatus itself had passed static evaluation only earlier this year.
ok what is the rate per month?
Hendrik_2000
Lieutenant General
The outlook for Chinese aviation industry look bright More and more airline are buying domestic product Plus the expansion of air route serving smaller communities in the west like this express airline with hub in Korla Xinjiang
FILE PHOTO: The fifth prototype of China's home-built C919 passenger plane takes off for its first test flight from Shanghai Pudong International Airport in Shanghai
Stella Qiu and Jamie Freed
Wed, May 12, 2021, 1:13 AM
By Stella Qiu and Jamie Freed
BEIJING/SYDNEY (Reuters) - China Express Airlines, a regional carrier based in the southwestern city of Chongqing, is betting that its business model of flying heavily subsidised routes using an increasingly Chinese-made fleet will give it an edge over rivals.
The airline reported a 22% rise in annual profit last year - a near-impossible feat in the pandemic-ravaged aviation industry - thanks to subsidies of more than 625 million yuan ($97.14 million) that accounted for 87% of its total profits before tax.
Routes in third and fourth-tier cities, 90% of which are monopolies, helped fuel growth and made it the only listed Chinese airline to make a profit in 2020.
That put the previously obscure carrier on the radar of investors seeking faster-growing, domestic-focused alternatives to China's three biggest airlines.
"The company has very few direct competitors nationwide, but only faces localised competition on their shared routes," said Wu Yifan, transportation analyst at Huachuang Securities.
Shares in China Express, with a fleet of 52 mostly Western-made planes as well as 100 domestically manufactured jets on order, surged 56% last year and have risen close to 20% this year.
It is benefiting from Beijing's drive to develop new airports in regional areas, as well as a push for locally built jets to challenge the dominance of Airbus, Boeing and Brazil's Embraer.
The airline's strategy, which depends on continued government route subsidies and the reliability of relatively unproven Chinese-made planes, is not without risk.
But analysts say the benefits from the subsidies and other government policies should continue for at least a few years. A blueprint issued by the State Council in February said China will build 150 civil airports in the next 15 years, mostly small facilities in less-developed regions.
Analysis: China Express bets on subsidised routes, home-grown jets as path to profits
FILE PHOTO: The fifth prototype of China's home-built C919 passenger plane takes off for its first test flight from Shanghai Pudong International Airport in Shanghai
Stella Qiu and Jamie Freed
Wed, May 12, 2021, 1:13 AM
By Stella Qiu and Jamie Freed
BEIJING/SYDNEY (Reuters) - China Express Airlines, a regional carrier based in the southwestern city of Chongqing, is betting that its business model of flying heavily subsidised routes using an increasingly Chinese-made fleet will give it an edge over rivals.
The airline reported a 22% rise in annual profit last year - a near-impossible feat in the pandemic-ravaged aviation industry - thanks to subsidies of more than 625 million yuan ($97.14 million) that accounted for 87% of its total profits before tax.
Routes in third and fourth-tier cities, 90% of which are monopolies, helped fuel growth and made it the only listed Chinese airline to make a profit in 2020.
That put the previously obscure carrier on the radar of investors seeking faster-growing, domestic-focused alternatives to China's three biggest airlines.
"The company has very few direct competitors nationwide, but only faces localised competition on their shared routes," said Wu Yifan, transportation analyst at Huachuang Securities.
Shares in China Express, with a fleet of 52 mostly Western-made planes as well as 100 domestically manufactured jets on order, surged 56% last year and have risen close to 20% this year.
It is benefiting from Beijing's drive to develop new airports in regional areas, as well as a push for locally built jets to challenge the dominance of Airbus, Boeing and Brazil's Embraer.
The airline's strategy, which depends on continued government route subsidies and the reliability of relatively unproven Chinese-made planes, is not without risk.
But analysts say the benefits from the subsidies and other government policies should continue for at least a few years. A blueprint issued by the State Council in February said China will build 150 civil airports in the next 15 years, mostly small facilities in less-developed regions.
Regional airliners have lost their market opportunities in eastern and central parts of China, due to the rapid development of high-speed rail. There are still opportunities in the western region though, including the vast northwest and the mountainous southwest. These parts of the country are either relatively sparsely-populated (by Chinese standard) and/or terrain-challenged to build high-speed rail. The provinces with most regional airports are Xinjiang and Yunnan, for example.
To be sure, it's more difficult to be profitable in these regions to operate regional airlines, at least in the short term. These places are less developed. That's why we're seeing regional or local governments are subsidizing the airlines to operate there. The key is the longer-term prospect of development at the respective local level. Some will take some time to take off, others may be more challenging. It's case by case.
Hendrik_2000
Lieutenant General
By the nature of western provinces, Airline is the only way to travel long distance. HSR is not practical other than few trunk line since the area is sparsely populated and difficult terrain either desert or mountainous area. That would rule out HSR as it does not make economical sense. You need purposely built plane to operate in such environment like bigger engine so it can operate in plateau and thin air region. Yeah you need to subsidize airline as initially the western region is not that wealthy. But plan is under way to expand the regional airports thru the area