30-Apr-2010 9:43 AM

Air China and Shenzhen Airlines accelerate network integration

Air China and its 51%-controlled subsidiary, Shenzhen Airlines, announced plans to accelerate the integration of their networks, which is predicted to generate a CNY1.7 billion (USD249 million) synergistic effect value, with plans to launch "City Express" passenger services between Chengdu and Guangzhou and Shenzhen from 01-May-2010 (dycj.ynet.com, 29-Apr-2010). The carrier will operate up to 30 times daily frequency on the routes, with the new services meaning the carrier will complete its network consolidation at four key bases: Beijing, Chengdu, Guangzhou and Shenzhen. The carrier plans to have a share of 50% and more than 50% of the Chengdu-Guangzhou and Chengdu-Shenzhen air markets, respectively, in combination with Shenzhen Airlines. Air China, upon a new strategic cooperation agreement signed with the Shenzhen Government on 27-Apr-2010, plans to develop Shenzhen Airlines as national air carrier with an over 50% share of the local city's aviation market.

Want More News Like This?

CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More