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China Eastern-Qantas & Air China-Air New Zealand JVs show renewed interest from Chinese airlines

26-Nov-2014 12:37 PM

The spectacular growth of China Southern Airlines in Australia and New Zealand came with the tradeoff that Air China and China Eastern lost interest in Australia and New Zealand, seeing China Southern's flood of capacity drastically hurting yields and making expansion too difficult. This is now changing, first with China's regulator signalling China Southern needs to slow its international expansion, and more recently with two proposed joint-ventures, one between China Eastern and Qantas and the other between Air China and Air New Zealand. The Chinese carriers are taking the view a deep partnership can help them where size is not to their advantage.

The two joint-ventures are distinctly different. China Eastern will likely gain more from its partnership with Qantas while Air New Zealand can potentially gain more by having the JV mend its frayed relationship with Air China. Further, China Eastern's more ideally located Shanghai hub gives greater potential growth from the JV whereas Air China will be challenged with its northern Beijing hub.

Air New Zealand may ultimately need another mainland Chinese partner, with its existing Cathay Pacific JV also leaving room for more. Qantas is eager to portray the China Eastern JV being to Asia what its partnerships with American Airlines and Emirates are to North America and Europe. But Qantas still has much to do to address its Asian strategy.

V Air, Taiwan's second LCC startup to launch in Dec-2014. Initial Thai routes could revive tourism

25-Nov-2014 12:02 PM

AirAsia X joins AirAsia in slowing expansion in challenging Malaysia market; cuts Australia capacity

24-Nov-2014 11:26 AM

JetBlue holds its ground as other US airlines ramp up capacity to the Caribbean

23-Nov-2014 12:16 PM

IAG’s Willie Walsh, Etihad Airways and flydubai receive top CAPA World Awards

23-Nov-2014 12:00 PM

Asian aircraft lessor numbers grow as investors begin to recognise benefits and growth demand

22-Nov-2014 9:16 PM

JetBlue outlines strategy to appease investors, but still offer customers a differentiated product

22-Nov-2014 2:00 PM

CAPA's Airline Executive of the Year: Willie Walsh

The CAPA Aviation Executive of the Year is awarded to the executive who has had the greatest individual influence on the aviation industry, demonstrating outstanding strategic thinking and innovative direction for the growth of the business and the industry. The CAPA Aviation Executive of the Year for 2014 has been awarded to Willie Walsh, CEO of International Airlines Group. â€śWillie Walsh’s vision and execution of IAG’s strategic agenda has positioned the group well for the achievement of margins beyond the reach of many rival airline groups. Willie has been exceptionally clear and focused with what he has been trying to achieve at the IAG carriers and has been consistently driving transformation ahead of his rivals. This has allowed IAG to recommence growing, as its new competitive profile generates business. “His past successes have included addressing labour issues at British Airways and guiding Iberia's turnaround. These successes have bred confidence in the group’s ability to achieve its stated objectives,” said Mr Harbison. 

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