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.