Archive for ‘aviation industry’

26/02/2020

Coronavirus: China’s airlines offer domestic flights for as little as US$4 as industry struggles amid outbreak

  • 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
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
26/09/2019

Beijing Daxing airport – world’s largest terminal – takes flight

  • 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
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
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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