26/02/2020
- Around two thirds of the total number of flights scheduled every day in February were cancelled, placing huge financial pressure on airlines and airports
- China’s aviation industry has also been affected by a series of restrictions by other countries and airlines, with British Airways extending its suspension until mid-April
The cancellation of around 10,000 flights a day, or around two thirds of the total number of flights scheduled every day in February, has placed huge financial pressure on airlines and airports. Photo: Kyodo
A one-way air ticket from the coastal economic hub of Shanghai to the inland municipality of Chongqing, a journey of over 1,400km (870 miles), now costs less than a cup of coffee, with Chinese airlines slashing prices in a bid to boost weak domestic demand amid the coronavirus outbreak.
The cancellation of around 10,000 flights a day, or around two thirds of the total number of flights scheduled every day in February, has placed huge financial pressure on airlines and airports.
The Civil Aviation Administration of China said in a notice on Tuesday that flights should resume gradually as part of the country’s efforts to return economic and social life back to normal, but passengers are still reluctant to fly with the deadly outbreak still not fully under control.
The one-way flight from Shanghai to Chongqing is being offered for just 29 yuan (US$4.10) by China’s biggest low-cost carrier, Spring Airlines, as a special offer for its frequent flyer club members, while a tall caffe latte at Starbucks in China costs 32 yuan (US$4.5).
Many Chinese carriers do receive subsidies for operating key domestic routes, so this also skews the economics as well Luya You
A one-way ticket from Shanghai to Harbin, the capital of the northern Heilongjiang province, a distance of over 1,600km (994 miles), costs just 69 yuan (US$9.80).
Shenzhen Airlines, a division of state-owned carrier Air China, is also running special offers to Chongqing, with a one-way ticket for the 1000km (621 miles) journey from Shenzhen costing just 100 yuan (US$14), around 5 per cent of the standard price of 1,940 yuan (US$276).
Chengdu Airlines, a unit of Sichuan Airlines, which counts China Southern Airlines as a shareholder, is also offering cheap one-way flights from Shenzhen to Chengdu, a distance of over 1,300km (808 miles), for just 100 yuan.
“Considering lower average costs of operating in mainland China, carriers could potentially offer deeper discounts while making slim profits or just breaking even,” said Luya You, an aviation analyst with Bank of Communication International. “As outbreak numbers stabilise or even decline, carriers will likely adjust their fares as well, so these low fares will not last if the situation quickly turns for the better.
“Many Chinese carriers do receive subsidies for operating key domestic routes, so this also skews the economics as well. If it is a key route, for example, the carrier may choose to continue operating regardless of fares or loads as the route constitutes a major link in the domestic network infrastructure.”
China’s aviation authority confirmed earlier this month that between January 25 and February 14, which included the Lunar New Year holiday, the average daily passenger traffic in China was just 470,000, representing a 75 per cent drop from the same period last year.
China’s aviation industry has also been affected by a series of restrictions by other countries and airlines, with British Airways last week extending its suspension of flights to China until after the Easter holiday in mid-April following travel advice from the British government.
The
novel coronavirus, which causes the disease officially named Covid-19, has infected more than 78,000 people and killed 2,700 in China. In recent days, South Korea, Italy and Iran have all reported a surge in new cases, raising fears over the spread of the coronavirus.
“The flight suspensions will track the outbreaks, but not likely lead them. If there are more outbreaks, expect more flight suspensions,” said Andrew Charlton, managing director of Aviation Advocacy.
Source: SCMP
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26/09/2019
- Visually spectacular and with the latest technology, the Chinese capital’s second international airport is open for business
The terminal building at Beijing Daxing International Airport, which has officially opened. Photo: Xinhua
At 4.23pm on Wednesday a China Southern Airlines A380 left Beijing for Guangzhou – on the first commercial flight out of the world’s latest and largest airport terminal at Daxing, five years after construction began on the ambitious project.
The 80 billion yuan (US$11 billion) Beijing Daxing International Airport was officially opened by Chinese President Xi Jinping on Wednesday morning.
China Southern Airlines, the mainland’s largest carrier, has 40 per cent of the flight slots at the new airport. It is one of 16 airlines which will be operating out of Beijing Daxing International Airport, the visually spectacular new facility at the southern end of the Chinese capital.
Six other flights, including China Eastern Airlines for Shanghai and Air China for Chengdu, took off before 5pm in the afternoon. These domestic airlines will have part of their operations moving to Daxing for the upcoming winter-spring season, according to the mainland’s aviation authority. No Hong Kong airlines were listed.
British Airways has announced its whole operation will be moved to Daxing, while some foreign airlines, such as Ethiopian Airlines, Polish Airlines, Malaysia Airlines, Royal Air Maroc and Finnair, will operate at both airports.
Spanning 47 sq km (18 square miles) – almost 50 per cent larger than the city of Macau – Daxing, with its 700,000 square metre (7.5 million sq ft) terminal is a spectacular sight. Its futuristic shape, resembling a giant hexagonal starfish or – as some internet users have dubbed it – an alien base, not only handles more aircraft, it also keeps passengers’ walks
From the centre of the security check to the furthest end gate in each wing is about 600 metres (1,970 feet), or less than an eight-minute walk.
Beijing’s new 7-runway, star-shaped Daxing airport opened by Xi Jinping
According to Xinhua, more than 70 restaurants, tea shops and coffee houses will operate in the airport, along with 36 international brands, including Louis Vuitton, Gucci and Bottega Veneta.
Daxing is designed to take pressure off the overcrowded Beijing Capital International Airport (BCIA) and, by 2021, is expected to handle 45 million passengers a year, rising to 72 million by 2025.
Located at the south of the capital, 46km (28.5 miles) from the central Tiananmen Square, the airport was once frowned upon for its less than optimal location, with its southern end at the border with Hebei province. But it may not be as time-consuming for travellers as originally thought.
The design of the airport means passengers will walk a much shorter distance to the check-in and security check.Hu Haiqing, China Southern Airlines
Hu Haiqing, deputy general manager of China Southern Airlines’ operation control centre, told Global Times that “although Daxing is further away from downtown Beijing than the Capital airport, there are still some advantages, especially for our airline”.
With most of its bases in the south of the country, China Southern Airlines flights to Daxing will be 10 to 15 minutes shorter than to the Capital airport. A further 15 to 20 minutes taxiing time will also be saved, thanks to its position in the new airport.
“The design of the airport also means passengers, once they leave their car or train, will walk a much shorter distance to the check-in and security check,” Hu said.
According to Xinhua, Daxing’s design also makes transit much quicker, with transfers between international and domestic flights up to 90 minutes shorter than from the Capital airport.
The futuristic shape of Daxing airport not only handles more aircraft, it also keeps passengers’ walks to a minimum. Photo: Xinhua
Public transport will be the quickest way to reach the new airport from downtown Beijing – 20 minutes from West Beijing railway station once the Beijing-Xiongan high-speed rail officially opens. The airport express service will also take passengers from Caoqiao station to the airport in 19 minutes.
There is no underground rail service or airport express connecting the Capital airport in the north with Daxing, but passengers can change trains at Caoqiao for downtown Beijing or other stations which connect with BCIA’s airport express service.
Waiting times at the new airport will be greatly reduced by the use of facial recognition technology for self-service check-in and smart security checks, according to Wang Hui, manager of Daxing’s terminal management department.
The technology does away with the need for a paper boarding pass and passengers can check-in, with or without luggage, and go through the security check by themselves.
Beijing is the window for China to go global … Daxing airport makes it possible to open more global routes.China Eastern Airlines pilot
“The airport has more than 400 self-service check-in kiosks, which means more than 80 per cent of check-ins will be self-service. That shortens each passenger’s queuing time to no more than 10 minutes,” Wang told Global Times.
“The smart security check channels are able to handle 260 passengers per hour, 40 per cent faster than using traditional means,” he said.
The opening of Daxing Airport could be a great boost for the mainland – and even the global – aviation industry by easing pressure on the Capital airport and making new routes possible, said a veteran China Eastern Airlines pilot who declined to be named.
5 things we know about Beijing’s new Daxing International Airport
Opening new flight routes from BCIA was almost impossible, he pointed out, because the centre of Beijing was a no-fly zone for security reasons. Daxing airport’s location at the southern end of the city, however, avoided the problem of planes having to bypass the restricted space, leaving room to open more routes for domestic and international flights.
“Beijing is the window for China to go global but the Capital airport’s schedule is saturated and unable to open new routes. Daxing airport makes it possible to open more global routes,” the pilot said.
He said the runway design at Daxing also meant fewer delays, because the four runways of phase one – more than any other airport in China – included one which was perpendicular to the other three, allowing flights to land and take off regardless of wind direction.
Source: SCMP
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12/08/2019
- Chief executive Rupert Hogg says staff who ‘support or participate in illegal protests’ would face disciplinary action that ‘may include termination of employment’
- Airline’s shares down 4.37 per cent on Monday morning to lowest level in 10 years, despite it complying with orders on Friday from China’s aviation authority
Cathay Pacific moved over the weekend to comply with new orders from China’s aviation authority. Photo: Bloomberg
Cathay Pacific has warned that it would sack staff taking part in illegal protests in Hong Kong, saying it would take a “zero tolerance” approach, as its shares slumped to their lowest level in 10 years in morning trading on Monday.
In a note to staff on Monday, chief executive Rupert Hogg said staff who “support or participate in illegal protests” would face disciplinary action that “could be serious and may include termination of employment”.
His warning indicated an escalation by the company, under pressure to crack down on employees after China’s civil aviation regulator said on Friday that airline staff supporting the Hong Kong protests would be barred from flights going to, from or through mainland China.
“We are all obliged to abide by law at all times,” Hogg said. “Cathay Pacific Group has a zero-tolerance approach to illegal activities. Specifically, in the current context, there will be disciplinary consequences for employees who support or participate in illegal protests. These consequences could be serious and may include termination of employment.”
By noon in Hong Kong, the stock had fallen 4.37 per cent to HK$9.85 (US$1.26), its lowest level since June 2009. Losses dragged the carrier’s parent company Swire Pacific down 5.4 per cent to HK$77.50, making it the worst performer on Hong Kong’s stock market during morning trading.
This was the lowest price since October 2018 for Swire, which owns 45 per cent of the airline. Air China, which owns 22.7 per cent of Cathay, also fell 1.53 per cent in Hong
On Friday, the Civil Aviation Administration of China (CAAC) told Hong Kong’s flagship carrier that any staff members who had taken part in what it called “illegal protests”, “violent actions” and “overly radical activities” would not be allowed to fly to or from the mainland, in a first warning shot at a Hong Kong-based corporate giant.
The CAAC also said that the airline would have to submit identification details of all crew operating all services using mainland China airspace, and that flights with unapproved crew lists would be barred. It gave the airline until Thursday to submit a detailed plan to improve its procedures.
Anti-extradition bill protesters join a sit-in protest at Hong Kong International Airport on Sunday. Photo: Reuters
Cathay Pacific had earlier said it would not stop staff members from taking part in demonstrations.
On Wednesday, Cathay Pacific chairman John Slosar said the company would not rein in staff for openly supporting the protests. “We certainly wouldn’t dream of telling them what they have to think about something,” Slosar said.
But in his second statement in two days in relations to the CAAC’s sanctions, Hogg said the “actions and words” of staff outside of work hours could have a “significant effect on the company”, adding that the actions of a few of Cathay’s 34,000 employees would be seen as a company position.
He also asked staff to not “support or participate” in the illegal protest at the airport, saying the carrier was concerned that the protests could become disorderly and violent.
No flights by Cathay Pacific, nor by its subsidiaries Cathay Dragon or HK Express, were delayed or cancelled on Saturday or Sunday, the company said.
The CAAC’s move was widely seen as a clear warning to Hong Kong’s business community to toe Beijing’s line to pressure ongoing anti-government protests in the city that have been taking place for over two months.
Despite the airline acting over the weekend to comply with the rules, Chinese state media continued to put pressure on the company.
Global Times, a tabloid associated with Communist Party mouthpiece People’s Daily, said on Sunday the airline had still not allayed all concerns despite its adjustments to comply with the ruling.
Carrie Lam’s remarks about Beijing’s sovereignty ‘add fuel to the fire’, analysts warn
“These are only small steps [showing] that Cathay Pacific is heading towards the right direction, and their sincerity will need to be tested over time,” the tabloid said in an opinion article on Sunday.
It said 2,000 company staff joined citywide strikes last Monday, and cited the case of a pilot who was arrested and charged with rioting during a demonstration on July 28.
“Cathay Pacific has touched on this behaviour lightly, which has a huge impact on the trust the industry and the public have towards the company,” the article said.
State broadcaster CCTV published a short video on Weibo on Monday morning of its anchor issuing further warnings to the airline, saying there were reports of staff continuing to join “illegal gatherings” and asking tourists not to go to Hong Kong.
“If this continues, it’s not a matter of whether or not people would still want to come to Hong Kong, but whether they would still want to be on your airline,” Kang Hui said in a one-minute video.
“Let me send a friendly reminder: one would not be in trouble had one not asked for it,” Kang said, in Mandarin and then in English, translating the popular Chinese internet meme phrase “No zuo no die” and claiming some Cathay Pacific staff pretended not to understand Mandarin. Cantonese is the dominant language in Hong Kong.
Elsewhere, the company announced that two of its airport employees
for leaking passenger information about a Hong Kong police soccer team who had been on a flight to mainland China. It has also suspended the pilot who was among 44 people charged with rioting on July 28.
Although the company does not clearly specify its country-by-country performance, China and Hong Kong produced half of all its 2018 revenue – HK$57 billion of a total of HK$111 billion. A fifth of all the carrier’s flight are to and from the mainland.
Source: SCMP
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