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- Shenzhen Bao'an International Airport, Shenzhen Airlines 518128
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All Nippon Airways
Shenzhen Airlines is a Chinese airline based at Shenzhen International Airport, on the Pearl River Delta in southern China. The airline operates eight branches in Guangzhou, Nanning, Wuxi, Shenyang, Zhenzhou, Yunnan, Shangdong and Jiangsu - a network covering south, east, and north east regions of China. Flag carrier Air China has a majority stake in Shenzhen Airlines, after former stakeholder Huirun filed for bankruptcy in 2010. Air China plans to keep the Shenzhen Airlines brand and use it to expand its presence in southern China and the Pearl River Delta region. The carrier joined the Star Alliance in Nov-2012.
Location of Shenzhen Airlines main hub (Shenzhen Airport)
53 total articles
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.
Growth in Chinese aviation is now well evident in the number of Chinese operators of widebody aircraft. In early 2012 only five Chinese airlines operated widebody aircraft. The Jun-2016 delivery of an A330 to Tibet Airlines increased the number of widebody operators to 10, and by the end of the decade there will be – if all plans are followed through – at least 17 Chinese airlines operating widebody aircraft. This potentially sets up the market for more widebody and long haul airlines within China than in the rest of Northeast and Southeast Asia.
At the Farnborough Airshow Donghai Airlines and Ruili Airlines sought to acquire 787-9s, while Lucky Air will also take 787-9s and become China's first long haul LCC. Shenzhen Airlines will take A330s, while Juneyao, Okay Airways and Shandong Airlines are also considering the type.
There are also possible new entrants like Qingdao Airlines, whose shareholder Nanshan Group now owns Virgin Australia. Widebodies at Donghai, Ruili, Juneyao or others would mean a widebody operation from an airline not affiliated with one of China's four airline groups: Air China, China Eastern, China Southern and Hainan Airlines. The smallest of these, Hainan Airlines, operates more widebodies than all the secondary and tertiary airlines combined.
Part 1 of this report examined the rapid expansion of China's airlines into international markets in 2015.
This second Part reviews the plans and likely developments in the near term. The second tier airlines reviewed, Tibet Airlines and Shenzhen Airlines are new arrivals on the long haul international scene
Three Chinese airlines – Air China, China Eastern and China Southern – today operate 77% of China's widebody aircraft. But as smaller airlines and secondary airports become more active internationally, the scene is changing. A 37% increase in international passengers carried in the first 8 months of 2015 bears testimony to the potential that is waiting to be unleashd.
Chinese airlines have finally kick-started international growth, expanding 37% in the first eight months of 2015. This equates to an additional 7.38 million passengers in 8M2015 compared to 8M2014. This almost equals the 7.39m passengers Chinese carriers added between 8M2010 and 8M2014. The volume growth Chinese carriers used to achieve over four years is now being achieved over just a single year.
With countries continuing to liberalise visas for Chinese nationals, and the Chinese government directing airlines to expand internationally, this faster international growth is the new norm. Although most international Chinese traffic is short haul, the accelerated growth is seen with long haul expansion: Sichuan Airlines launched long haul flights in 2012 and not another Chinese carrier went long haul until Xiamen Airlines in Jul-2015. Beijing Capital Airlines followed in Sep-2015, and 2016 could see two more airlines – Tianjin Airlines and Tibet Airlines – fly long haul. 2016 will see at least 10 Chinese airlines operate widebody aircraft. This report looks at the long haul growth from China's secondary carriers that will increasingly become intercontinental names.
Clouds loom over Cross-Strait airline market as Taiwan faces political change. Hong Kong may benefit
The ruling, and pro-Beijing, KMT party is expected to lose the Jan-2016 elections in Taiwan. Under the KMT's leadership Beijing and Taipei have forged closer ties, including the launch of charter and then scheduled Cross-Strait flights between mainland China and Taiwan, which had been prohibited for decades. There has been growth, with increase in overall frequency as well as destinations available to be served in the still tightly-regulated market.
An outstanding gripe from the Taiwanese side was that, for complex reasons, their airlines were not permitted to carry transfer traffic from mainland China to Taiwan and beyond to other markets – such as Australia and North America, two popular long haul markets from mainland China and for which Taiwan is well positioned to be a hub. Earlier in 2015 when relations were warmer, Taiwanese carriers were expected to receive transfer traffic rights by the end of the year. But as the Taiwanese political situation has turned unfavourable to Beijing, an Oct-2015 meeting did not grant transfer traffic rights. The bigger risk is that cooling relations would slow Cross-Strait liberalisation – or at an extreme, recede. One outcome could be that visitor growth would instead funnel through the Hong Kong hub.
As questions reverberate about China's economy and slowing growth, what are the impacts to Chinese aviation, home to the world's second-largest domestic market?
The good news is 1Q2015 traffic from China's airlines is comfortably robust, increasing 13% and surpassing 100 million passengers for the first time. Domestic growth remained at 11%, with Chinese airlines carrying an additional 9 million domestic passengers in 1Q2015 compared to 1Q2014 – equivalent to an additional 656 737 flights a day.
International growth has picked up giant steam, surging 57% in 1Q2015 – equivalent to an additional 64 A380 flights a day. But overall international traffic remains small for Chinese airlines, accounting for only about 7% of total carriage – the same as in 2008 but higher than more recent years. Regional growth has slowed to 5% as Hong Kong and Macau are not as attractive as they used to be.
More worryingly for Taiwan, that market is starting to show a contraction in Chinese visitors, perhaps as they head to seemingly more exotic regional Asian points like Japan, Korea and Thailand. Those three countries will attract the highest growth from Chinese airlines in summer 2015.