- CAPA Analysis
- Schedule Analysis
- Cargo Analysis
- Route Maps
- Fast Fact Report
- Airline Status
- IATA Code
- ICAO Code
- Corporate Address
- HNA Development Building
29 Hixiu Road
People's Republic of China
- Main hub
- Haikou Hainan Meilan International Airport
- Business model
- Full Service Carrier
- Domestic | International
- Airline Group
- Part of Hainan Airlines Group (HNA)
- Frequent Flyer Programme
- Fortune Wings Club
- Association Membership
- Codeshare Partners
- Aigle Azur
Beijing Capital Airlines
CSA Czech Airlines
Grand China Air
Guangxi Beibu Gulf Airlines
Hong Kong Airlines
Yangtze River Airlines
Established in 1993, Hainan Airlines is a Chinese full-service carrier and one of the largest airlines in the country. The carrier operates from its primary hub at Haikou Hainan Meilan International Airport, serving an extensive domestic and international network to destinations across Asia, Europe and North America. In addition to its scheduled services, Hainan Airlines also provide select charter services. The carrier operates a mixed fleet of narrow and widebody jet aircraft.
Location of Hainan Airlines main hub (Haikou Hainan Meilan International Airport)
Hainan Airlines share price
154 total articles
A period of restructuring following investment by new shareholders in TAP Portugal in Nov-2015 has led to a resurgent airline. It returned to profit in 2016 after two years of losses and enjoyed a surge in passenger numbers in 4Q2016.
The investment by the Atlantic Gateway Consortium, which HNA Group will formally join in 1H2017, provided funds for fleet expansion. TAP's orders include A321neoLR aircraft, giving it the potential to open new long haul routes not possible with widebodies.
TAP's VP finance, Teresa Lopes, told the CAPA Fleet & Finance Summit on 2-Mar-2017 that the A321neoLR would be deployed on the Atlantic, putting the airline at the forefront of narrowbody long haul operations. TAP's new shareholders have also enabled new partnerships with Brazil's Azul, JetBlue of the US and China's Hainan Airlines. The TAP-Azul relationship has already progressed beyond codeshare and the Hainan relationship offers much potential.
In the past year TAP has also reorganised its regional operation, launched a new fare structure and embarked on a seat densification programme to lower unit cost and drive revenue. As Ms Lopes said, "We are certainly going through a transformation, we don’t want to be envisioned as a legacy carrier anymore".
The most important regulatory development in Chinese aviation in 2016 – and possibly one of the top for the decade – was awarding China Eastern Airlines home carrier status for Beijing's second airport, Beijing Daxing, due to open in 2019. There are usually few surprises in Chinese aviation: if word does not leak out, it is softly dripped. But few expected that China would award China Eastern in this way. China Eastern is due to become the only Chinese airline with dual home hubs in Beijing and Shanghai, granting a remarkable advantage.
Rather than allow airlines to operate from both airports, Air China and its Star Alliance partners will remain at their existing Beijing Capital hub and benefit from significant slot growth. China Eastern, China Southern (which was also named base carrier at Daxing) and SkyTeam partners will gradually move to the new Beijing Daxing.
Yet this move, expected to be backed by added traffic rights, risks the two airports competing with each other rather than singularly growing the Beijing hub, which has better geography as a connecting point for Europe and North America. China Eastern may indirectly receive a second victory: fragmenting Beijing adds relative strength to China Eastern's hub at Shanghai, where it is the only intercontinental home airline. China can make sweeping policy changes, but until then China Eastern's advantage is undeniable.
Chinese New Year air traffic a boon to airlines but reflects challenges of year-round sustainability
The Chinese New Year travel season, billed as the world's largest migration, once again fills the headlines with astounding numbers of passenger movements. Some airlines set maximums on pricing, for fear of being seen as price gouging if revenue management systems followed their normal pricing curve upwards.
Even the most sceptical investors would be forgiving for contemplating airline ownership during the travel rush. The question, and lurking problem, is what happens the rest of the year.
China's concentrated and en masse travel periods present a challenge for sustainability. Airlines local and foreign are often reduced to hoping that routes will be annually profitable based on a few weeks of travel during Chinese New Year, the brief summer peak, and the autumn holidays. With load factors consistently high, yields are weakened, either on point-to-point traffic or as Chinese airlines aggressively discount connecting/transfer traffic.
On a volume basis, international traffic remains strong, expanding by an estimated 9.3 million passengers in 2016 for 22% growth. Chinese airlines continue to pivot to the international market, and Air China now has more capacity internationally than domestically.
China has agreed to liberalise passenger flights and remove capacity restrictions with Australia, its largest outbound long haul market after the United States. This is a relief to Chinese airlines, which face bilateral constraints in North America and Europe. The result is already evident as Chinese airlines deploy more capacity and larger aircraft to Australia.
In North American and European markets the local governments hold back on traffic right expansion (let alone open skies). But for Australia it was the Australian government, which signalled some years ago that it wanted to liberalise once China was ready – a time that has now come.
Australia's view was progressive and detached from bygone days of national carrier interest; Chinese airlines hold 90% of the market to Australia. Elsewhere many governments still hold back on Chinese traffic right expansion so their local airlines can continue to grow. There are 15 Chinese airports that have nonstop flights to Australia with a total of 27 airport pairs – figures that should expand in 2017 as the market evolves further with the Virgin Australia-HNA partnership.
An agreement between China and the UK to more than double their air service agreement is good timing for both sides. Chinese airlines are finding an imbalance: they are taking delivery of widebody aircraft and more Chinese airlines are flying long haul but traffic rights to major markets – the US, Canada, Germany and France – are becoming depleted. Negotiations to add traffic rights have not succeeded, typically due to the foreign side being concerned about accessing Chinese slots or Russian overflight rights.
The agreement with the UK to expand the number of weekly passenger flights from each side from 40 to 100 reflects considerable pragmatism on the part of the UK: British Airways and Virgin Atlantic are not growing in China, and China is a large growth opportunity. The UK has lagged on Chinese tourism. It was only in 2015 that China became the UK's largest inbound market.
Part 1 of CAPA's analysis of the S7 Airlines Group examined its network and competitive positioning, particularly with respect to the Russian market leader Aeroflot Group. Away from its Moscow Domodedovo hub, S7 has pockets of strength serving cities in Asia from regional Russian airports.
This second part of the report on S7 highlights its respectable track record of growth in its operations and profitability since the establishment of its subsidiary Globus in 2008. In 8M2016 its passenger growth rate accelerated to 25%, after a 6% increase in 2015. Although demand for international air travel to/from Russia has slumped due to geopolitical developments, S7 has benefited from growth in the domestic market and from capacity cuts by foreign competitors on international routes. It has also benefited from the 2015 collapse of Transaero (although Aeroflot has gained more from this).