China Southern Airlines reportedly reported loss from the carrier’s A380 operation in 2012 between CNY150 million (USD23.4 million) and CNY200 million (USD31.3 million), according to The Economic Observer. The carrier is scheduled to take delivery of its fifth and final A380 at the end of Feb-2013.
China Southern Airlines A380 loss reached up to USD31m in 2012: report
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9 Air, first all-new Chinese low-cost airline since policy reforms, launches in Guangzhou
Chinese start-up 9 Air/Jiu Yuan Airlines commenced scheduled service on 15-Jan-2015 in the domestic Chinese market. Perhaps fittingly, 9 Air will use the IATA code AQ, formerly with “Aloha Airlines”, whose name is a Hawaiian salutation. 9 Air will be the first to greet a new Chinese environment: the airline is the first low-cost carrier to launch from scratch under China’s policy reforms.
That distinguishing label comes with its burdens. 9 Air’s launch was repeatedly delayed and a soft launch with charter-only service was on the short 387km Guangzhou-Zhanjiang route. Nonetheless, China Southern – also based in Guangzhou – cut prices on that service.
9 Air’s launch on a single Guangzhou-Wenzhou-Harbin routing keeps it out of the thick of competition, but it will inevitably take a higher profile as it receives the first of 50 737s it directly ordered.
China Southern 6th airline in history to carry over 100m passengers. Now for improved efficiency
China Southern Airlines has become the sixth airline group in the world – and the first outside the United States or Europe – to transport over 100 million passengers a year. Founded only in 1988, China Southern reached this milestone in 2014 faster than the other groups carrying over 100m passengers: American Airlines, Delta Air Lines, Lufthansa Group, Southwest Airlines and United Airlines. Ryanair expects to carry 97m passengers in 2015, likely leading it to carry 100m shortly thereafter.
The Air China and China Eastern groups are expected also to cross the 100m mark. Fast growth at the HNA Group could also see it carry 100m passengers around the turn of the decade. This would be impressive given the group has limited public capital, but would also give China four groups with over 100m passengers, matching the US.
China Southern is big, but this fast growth, partly organic, partly through merger, has come at the expense of efficiency. It may have the highest growth prospects but it also has considerable work ahead to become agile. It could also have the most at risk as its core domestic market faces new competition while long-haul performance continues to lag.