Air China subsidiary Dalian Airlines covers a key strategic position in northeast China

Air China start-up Dalian Airlines commenced operations on 31-Dec-2011, marking another milestone in the flag carrier's expansion of its domestic footprint. A bastion of China Southern (following its takeover of China Northern in 2003), Dalian Airport is a key northern gateway, with strong trade links to neighbouring Japan and Korea - which feature in Dalian Airlines' future expansion plans. The focus on the north-eastern region also reflects a shift in domestic network development patterns in China in light of increasing competition from the high-speed rail (HSR) network. Shandong Airlines, Hainan Airlines and China Southern Airlines have separately stated they will increase services to/from China’s north-east and north-west regions.

With the establishment of Dalian Airlines, Air China, is expanding its domestic and regional presence through a subsidiary operation. The complex ownership structure of subsidiaries is common among the ‘Big Three’ carriers in China, while HNA Group also has a convoluted subsidiary and ownership structure, in addition to a branch carrier network. [2183 words]

CAPA Members Login Username: Password: Remember details

Instantly get access to this article now for USD15.00. or If you've already bought this article, you can view it by typing your Article Key:

This report contains the following subheadings:

• Dalian Airlines to face fierce competition from China Southern
• Dalian Airport is China’s 15th largest airport handling 12 million pax
• Dalian Airport builds for strong predicted growth
• Opening of Harbin-Dalian HSR line postponed
• Dalian Airlines becomes the first airline company based in Dalian
• Subsidiary structure and lack of international investment features of domestic aviation market in China
• Continued growth in still-large regional markets in 2012

This report contains the following charts and tables:

• Dalian Airport capacity (seats per week) by carrier: 02-Jan-2012 to 08-Jan-2012
• Dalian Airport passenger numbers: 2010 to 2012
• Dalian Airport cargo volume: 2010 to 2012
• Dalian Airport aircraft movements: 2010 to 2012