Hebei Airlines (formerly Northeast Airlines) was relaunched on 29-Jun-2010 following an agreement between Sichuan Airlines Group and the Hebei Municipal Government to restructure the airline. Hebei Municipal Government will invest in the restructured airline through its investment arm, Hebei Jizhong Energy Group. Sichuan Airlines Group recently invested CNY400 million for a controlling 97% stake in the carrier. Shenyang Zhongrui Investment Co holds the remaining 3% stake in the carrier.
Formerly based at Shenyang Taoxian International Airport, in Liaoning Province in Northeast China and established by Chinese aircraft manufacturer Shenyang Aircraft Corporation and Sichuan Airlines, Hebei Airlines has developed a base at Shijiazhuang, Hebei Province.
Location of Hebei Airlines main hub (Shijiazhuang Daguocun Airport)
166 total articles
Hebei Airlines launches Shijiazhuang-Tangshan service, increase Shijiazhuang-Ningbo-Zhuhai frequency
7 total articles
The first day of the 2012 Farnborough International Airshow saw an order from Hebei Airlines for five Embraer E190s. While the order may not be a blockbuster for the show, it is a critical part of one of air transport's quickly rising themes: regional China. Beijing and Shanghai may hold the country's spotlight, but second and third tier cities are growing much faster, a result of Beijing and Shanghai being severely constrained as well as government policies supporting growth outside of coastal areas.
Hebei Airlines was relaunched in 2010, having previously been called Northeast Airlines with a base in Shenyang. Sichuan Airlines took a majority stake in Hebei, based at Shijiazhuang in Hebei province, southwest of Beijing. The partial ownership gave Sichuan, based in more central China, exposure to northeast China. The country's main carriers are increasingly looking for new partners and bases to capture growth as air travel further develops in what will be the world's second largest domestic market.
Embraer continues to be successful in selling the E-190 in China over the indigenous ARJ21 regional jet, but it continues to fail in repeated attempts to open a Chinese E-190 assembly line.
The CAAC has come out with an extraordinary prediction this month: Chinese airlines will nearly double their fleet size to as many as 5,000 aircraft by 2015. In the shadows of a major international air show on home soil, one might expect some bullish sentiment from the hosts. But the comment, by CAAC Head Li Jiaxiang, that the nation's domestic carriers will have an expected combined fleet of 4,800-5,000 aircraft in just five years (from 2,600 at present) is a breathtaking assessment. Even if it's only 50% accurate, aircraft manufacturers big and small are in for a bonanza.
China’s fragmented airline industry is undergoing a shakeup. Merger and acquisition activity is intense – probably more so than any other aviation market in the world. In the space of a few short years, the majority of China’s second tier airlines have, at least partially, become owned or controlled by one of the "Big Three" carriers and/or HNA Group, as consolidation accelerates in China. In this report, CAPA reviews what’s fuelling the feeding frenzy and who the targets are.
China’s second-tier carriers are hard at work at present, rapidly expanding their domestic and (in some cases) international route networks. However, the vast majority of these airlines are now doing so under the control of the "Big Three" carriers and/or HNA Group, as consolidation accelerates in China. As such, China’s airline evolution is at a very interesting stage. Where previously the major airlines: 1) established considerable branch carrier networks to serve diverse geographic areas in China; and 2) eliminated brands of the acquired airlines, they now appear to be looking more strategically at segmenting the market, retaining the second-tier carrier brands, particularly those focused on tourism/leisure markets.