- CAPA Analysis
- Schedule Analysis
- Route Maps
- Print Summary
- IATA Code
- ICAO Code
- Corporate Address
- 212 Jiangning Road
- Main hub
- Shanghai Hongqiao Airport
- Business model
- Full Service Carrier
- Domestic | International
- Association Membership
- Codeshare Partners
- China Airlines
China Eastern Airlines
Hong Kong Airlines
Shanghai Airlines is a full-service carrier based at Shanghai Pudong and Hongqiao airports. The airline is wholly-owned by China Eastern Airlines, but the two airlines retain separate branding and identities. Shanghai Airlines is a former Star Alliance member but since the China Eastern takeover it is part of SkyTeam.
Location of Shanghai Airlines main hub (Shanghai Hongqiao Airport)
329 total articles
38 total articles
The growth of China’s “Big Three” airlines – Air China, China Eastern and China Southern – has been spectacular. China Southern’s RPKs have increased from 20 billion in 2000 to nearly 140 billion in 2012. Outside China, the airlines' growth has generally been noticed in terms of international flights, leading to some misconceptions about the sector.
While the Big Three are increasing international flights, they are also increasing domestic services in the same proportion. Domestic RPKs in 2012 accounted for 79% of China Southern’s total RPKs – little change from 2000’s figure of 78%.
This is perhaps baffling to those aware of the huge potential of the outbound Chinese market. While the demand exists, Chinese carriers have failed to capitalise on it – and for good reason. International yields are often significantly lower than domestic yields, and international services are often unprofitable. The implication for the international community is huge: China will continue to hesitate to dispense traffic rights until its airlines have stronger performance, which will enable them to balance foreign growth. But many of the problems are well within their power to solve.
The SkyTeam alliance has taken a crucial step forward in cementing its place in the fast-growing Asia Pacific aviation market by adding China Eastern Airlines and Shanghai Airlines to the fold this week. Based at the powerhouse Shanghai Pudong and Hongqiao airports, the move is a double breakthrough for SkyTeam, sweetened by Shanghai Airlines' switch from Star Alliance and China Eastern's flirtation in recent years with Star stalwart Singapore Airlines.
Chinese Vice Premier Zhang Dejiang stated the Chinese government supports domestic airlines joining global alliances and encouraged the nation’s airlines to learn from other airlines to improve services and management in order to be more competitive in the global market. The civilian global aviation industry plays a fundamental and strategic role in China's economy, and the government will continue to strengthen exchanges and cooperation with alliances and foreign airlines to promote its rapid development, Mr Zhang said.
China’s three major carriers reported strong revenue gains in 1Q2011, based on Chinese Accounting Standards, although only China Eastern Airlines reported net profit improvements. Air China and China Southern Airlines both reported declines in their net profit due to one-time exceptional gains during 1Q2010. All the Chinese carriers that have reported 1Q2011 financial results to-date, including Hainan Airlines and Shandong Airlines, have reported positive net and operating profit margins.
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.
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