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Air China

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Air China

Air China Chairman and non-executive director, Kong Dong
Air China Chairman and non-executive director, Kong Dong
IATA Code
CA
ICAO Code
CCA
Corporate Address
Xidan Civil Aviation Building: No.15 Chang'an West Street, Beijing
PRC China
Website
http://www.airchina.com
Main hub
Beijing Capital International Airport
Country
China
Business model
Full Service Carrier
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Air China is the flag carrier of China, China's second largest airline after China Southern, with main bases at Beijing Capital and Shanghai Pudong airports. Air China operates a mixed fleet of Boeing and Airbus aircraft, offering over 6,000 weekly services on 243 routes throughout Asia, North America, the Middle East, Europe, and Australia. Air China maintains close strategic relationships with Cathay Pacific and Shenzhen Airlines, as part of its strategy to increase its reach in the southern Chinese market. Additionally, Air China and Cathay have cross-equity interests and have a JV Shanghai-based cargo carrier.

Location of Air China main hub (Beijing Capital International Airport)

Source: CAPA - Centre for Aviation and Google Maps

Air China share price

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Source: CAPA - Centre for Aviation and Yahoo! Financial


 
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1,208 total articles

6,129 total articles

Marketing the emergence of China's sixth-freedom hubs

6-Feb-12 12:46 PM

In a move that will tilt the world's aviation axis, Chinese airlines are making bold efforts to target sixth-freedom traffic from their geographically well-positioned hubs that further benefit from very low cost bases. There are challenges including service, distribution and marketing, but on the latter two, China's airlines are making efforts and not standing still.

Chinese carrier pax traffic to exceed 300 million in FY2012 as double-digit pax growth returns

6-Feb-12 11:46 AM

China’s aviation market is poised for a memorable year in 2012, as Beijing likely eclipses Atlanta as the world’s busiest airport (expected in 2H2012) and double-digit traffic growth rates return. Chinese carriers are expected to report a 10% increase in passenger traffic this year to 320 million passengers, according to industry regulator, the CAAC, following growth of 9.2% in 2011.

Some 21 airports in China handled more than 10 million passengers in 2011, five more than 2010 – and more are expected to join the ‘10 million+ club’ in 2012. Eight Chinese airports handled more than 20 million passengers last year. 10 years ago, Beijing was the only Mainland Chinese airport handling over 20 million passengers (with 24.2 million passengers in 2001), while Guangzhou Baiyun and Shanghai Hongqiao (both with 13.8 million passengers) were the only two other airports in China with over 15 million annual passengers.

Chinese airlines' sixth freedom roles could challenge Middle East, Asian, European hubs this decade

26-Jan-12 6:52 PM

Signs are now emerging of the enormous – and largely unanticipated – impact that China’s airline industry will have on the international network as this decade rolls out. It will significantly tilt the world airline system.

China’s airlines have expanded remarkably since 2000, but most of that growth has been in the domestic arena, responding to the country’s rapid economic rise. It is only more recently that the airlines, with Central Government encouragement, have begun to focus more on international routes.

There are obstacles to be overcome. Service quality is typically not at the standards expected of the Asia Pacific region carriers; marketing and distribution remains a problem; yield management systems have been inadequate; and limited networks still make achievement of critical mass a challenge.

Yet Chinese airlines have two great advantages when it comes to operating sixth freedom network roles: they have a massive and growing third and fourth freedom market; and they are geographically strategically placed to service traffic flows from all countries to the south, connecting with North America and Western Europe using the effective north Polar routing. Additionally, they have relatively low cost bases.

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

6-Jan-12 12:13 PM

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.

Star Alliance unveils common economy class seat

29-Dec-11 3:02 PM

Star Alliance has completed its development of a common long-haul economy class seat its member airlines can avail themselves of. The B/E Aerospace seat is approximately 30% lighter than existing seats, and 15,000 of them will be installed by the end of 2012 on long-haul aircraft from Air China, Austrian and Lufthansa, the three initial customer airlines. Installation will begin in the northern hemisphere's 2012 summer.

Air China expanding European network with services to Copenhagen, London Gatwick and Paris CDG

22-Dec-11 12:23 PM

Air China has announced three new European routes in the first two weeks of Dec-2011, with plans to expand its European network to 14 destinations and the number of weekly services between mainland China and Europe to 178. Air China currently has a 25% capacity share on services between China and Europe with over 46,000 weekly seats, significantly ahead of Lufthansa (17,119 weekly seats) and China Southern Airlines (15,140), according to Innovata. The latest route announcements will entrench its market leading position.

Air China plans to launch services to Copenhagen, London Gatwick and Paris Charles De Gaulle (Paris CDG) in the first six months of 2012, supplementing the carrier's existing European network which comprises service to Athens, Düsseldorf, Frankfurt, London Heathrow, Madrid Barajas, Moscow Sheremetyevo, Munich, Rome Fiumicino, Chita (Russia) and Stockholm Arlanda. Dedicated freighter services also operate to Copenhagen Kastrup, Milan Malpensa, Novosibirsk Tolmachevo, Paris CDG and Vienna.

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