Cheap Canton
China Southern Airlines is throwing down the gauntlet to the old-guard with rock bottom fares as it attempts to make a name for itself flying between Europe and Australia.

According to Bloomberg, CSA is undercutting Qantas by as much as 34 per cent between Sydney and London. It is prepared to sacrifice profitability so it can take market share away from Dubai, Hong Kong and Singapore among others.

Here are the all-important numbers:

China Southern’s cheapest economy-class fare between Sydney and London for a two-week trip starting May 4 was A$1,442 (9,309 yuan, US$1497) on travel booking website webjet.com.au yesterday [March 13].

The lowest price for a non-Chinese airline, on Malaysian Airlines, was 19 per cent more expensive at A$1,721 (11,110 yuan, $1,786). Emirates tickets started at A$1,896 (12,240 yuan, $1968) while Singapore Air’s was at A$1,940 (12,524 yuan, $2,014).

The cheapest Qantas ticket was 51 per cent more than China Southern, at A$2,180 (14,074 yuan, $2,263).

Currently, all 30 weekly China Southern flights to Australia from Guangzhou are profitable, an incredible feat. However, a health check on the rest of the airline’s international network tells a different story. The majority are languishing in the red, along with its domestic operations.

These problems can be attributed to a lack of awareness to the CSA brand globally and serious competition in the mainland, but its image is changing as it further embeds itself into the SkyTeam airline alliance.

In announcing the Canton Route last year, it made a play on Cathay Pacific’s Hong Kong territory, but it also joined a handful of airlines connecting the dots, usually via the traditional Kangaroo route.

At the start of next month, Australia’s Qantas, which first coined the Kangaroo Route, will leave its Singapore stopover for Dubai in partnership with Emirates, leaving British Airways and Singapore Airlines a wide berth. But these carriers carry some of the highest fares, leaving state-backed CSA to undercut its rivals.

Bloomberg reports:

The [Canton] route will provide experience needed for further expansion into North America and Europe as annual spending by Chinese tourists exceeds $100 billion.

Here’s what the rivals have to say:

The Chinese carriers “are on our radar,” said Simon Hickey, head of Qantas’s international unit.

The competition “keeps us on our toes,” Singapore Air spokesman Nicholas Ionides.

Qantas and Singapore Air are configuring their own strategies for growth and profitablity

Peter Harbison of aviation analyst CAPA says:

“The sheer volumes of travelers mean that eventually China can be the most powerful transit country in the region, probably the world…They will be able to price very, very competitively.”

Plans to make Guangzhou a transit hub of choice are well underway, with upgrades to existing infrastructure and an expansion in full swing. Still, it has a ways to go before it can take on award-winning Changi Airport in Singapore, the premier choice.

BA to go A380 to Hong Kong
British Airways is joining the superjumbo pack later this year as it unleashes its first batch of 12 Airbus A380s to Hong Kong. The UK’s flagship carrier has penned November 15 for its first departure if all goes according to plan.

This will be a boost also to Cathay Pacific, as it joins up with BA to become the partner of choice to take passengers between Australia and Europe. Deploying the A380 will marginalise CSA’s attempts to shift passengers from Hong Kong to Guangzhou.

All change for Dragonair?
Rumours of a name change at Dragonair are being speculated, first reported by CAPA, as Cathay Pacific seeks to accelerate the makeover of the regional airline it bought back in 2006.

A rogue photo sent to the South China Morning Post has heightened speculation that change is afoot.

The name is Dragon… Cathay Dragon.

The hybrid puts a Swire stamp on its purchase, keeping part of the Dragonair brand – stated to be a powerful name among Asian travellers – and shoehorning Cathay, widely recognised around the world, to show who’s in charge.

The option to refresh the brand comes as naming rights expired last year leaving the door open to change.

Dragonair’s cabin offerings will soon be matched to its sister airline in all but colour, giving consistency to customers – a regular complaint among seasoned Cathay travellers shoved onto codeshare flights.

Dragonair image: SCMP / Other images: Danny Lee

The post Guangzhou’s flagship carrier slashing fares, and Dragonair to change its name? appeared first on The Nanfang.

Stars align for Shenzhen Airlines
Shenzhen Airlines, China’s fourth largest carrier, has been handed a “win-win” boost after being accepted into one of global aviation ‘big three’ alliances.

The move opens up more of the Pearl River Delta as passengers fly to and from China and beyond.

Following parent company Air China, the southern China-based carrier joins Star Alliance, bringing more than 400 flights and 70 destinations to the network.

As reported by WCARN.com, Star CEO Mark Schwab said:

Shenzhen Airlines is China’s fifth largest carrier and strengthens the Star Alliance presence in China and across Asia. Our customers now benefit from improved access throughout the economically important Pearl River Delta and across southern China. At the same time, Shenzhen Airlines gains access to a global network with enhanced benefits for its passengers; truly a win-win situation.

This is good news for the legions of international travelers based in Shenzhen, as the can earn frequent flier miles more easily and reach more destinations with less hassle.

The move also brings Shenzhen in line with the rest of the PRD airports. China Southern and SkyTeam have an iron grip on Guangzhou Baiyun while Cathay Pacific and the Oneworld alliance dominate Hong Kong.

Beijing to seize control of Cathay?
CAPA has a must-read piece on the future ownership of Cathay Pacific. Could Swire, its largest shareholder, be prepared to sell its holding – at the right price – to Air China, which already owns 29.9% of Hong Kong’s flagship carrier?

Here’s what CAPA has to say:

An Air China takeover would be deeply political, and is seemingly not a question of if but when, how and what the competitive response is. Cathay expects Air China’s stake to increase, but Cathay’s board 
must first approve a takeover, which is not expected in the short term. The mood from Swire, Cathay’s largest shareholder (42%) and source 
of senior management – and almost its entire culture – is a firm commitment to Cathay and aviation in greater China but also seems to be that it will sell, but for a premium. As for accepting a takeover, the time may come when Cathay and Swire know that not cooperating with Beijing will yield unfavourable outcomes, as Hong Kong edges closer to becoming more fully a part of China.

It has to be said any takeover bid would be deeply controversial and stoke growing anti-mainland sentiment in the SAR.

Nevertheless, within the ‘big three’ alliances shaking-up their offerings at the moment, a takeover could lead to wider changes in the Delta.

The post Shenzhen Airlines’ ‘Star’ turn, Beijing to seize control of Cathay? appeared first on The Nanfang.

Fuel surcharge is back, again
For the third time this year mainland carriers will raise airfares in a battle to keep surging fuel costs under control.

According to Life of Guangzhou, from September 5, surcharges will return to pre-July 5 levels, the last time cuts were made. This means flights over 800km now face a surcharge of RMB130, while those flying shorter distances are hit with an RMB70 charge.

Saudia to go direct from Jeddah, Aeroflot to increase Guangzhou flights
In line with Guangzhou’s growing influence in emerging markets, Saudia is launching a new weekly service to Jeddah starting on December 1, complementing its thrice-weekly Riyadh service.

Outside of Asia, Gulf carriers are the next biggest group of airlines linking up their countries with Guangzhou, China’s manufacturing capital. However, with the popularity of Russia on the rise, Aeroflot is adding an extra flight to Guangzhou.  However, it won’t take to the skies until March next year, although that could change in the coming months as airlines tweak their schedules.

A tech take-off?
Airlines such as Emirates are far and away ahead of the game, helping passengers stay connected in the skies. They currently offer Wi-fi on-board their A380 aircraft, while the UK’s British Airways is introducing the iPad on its transatlantic flights between London and New York. It seems, though, that Cathay Pacific might get in the game to keep up with rivals.

The South China Morning Post’s Charlotte So writes:

Hong Kong’s aviation regulator might be stirred into renewing its rules on the use of electronic gadgets on aircraft following the US Federal Aviation Administration’s (FAA) decision to allow greater on-board use of the devices.

Cathay Pacific Airways, which is studying the application of air-to-ground Wi-fi internet services, welcomed the initiatives by regulatory agencies to review and potentially approve the broader use of personal electronic equipment on board, a spokesman said.

Under the existing guidelines set out by the Hong Kong Civil Aviation Department as well as other international regulators, it is the responsibility of carriers to verify whether devices using wireless local area network (WLAN), including Wi-fi connections, could interfere with aircraft systems.

That is good news, especially if you’re flying long-haul and all you can do is eat and sleep without the luxury of the internet.

Profits tumble for China’s major airlines
China’s leading airlines are piling on debt to grow rapidly and turn themselves into world-beating airlines.

Guangzhou-based China Southern (CSA), China’s biggest airline by passenger numbers, says first-half profits crashed 85 per cent to 424 million yuan because of a slowdown in demand from the world’s second largest economy while fuel costs continue to take a toll.

But it’s not just CSA. Rivals China Eastern reported a 65 per cent slump in net income and Air China fell 77 per cent.

The future isn’t looking as bright as it once was with all the major airlines feeling the negative effects of a weaker Chinese economy, a European debt crisis and a world that hasn’t yet recovered from the global recession five years ago.

Battling bird strikes
Airport authorities in Guangzhou, Shanghai and Beijing are joining forces in a bid to prevent bird strikes from happening after a string of incidents at Pudong Airport since July, according to CRIEnglish.com:

The new methods they have jointly developed include splashing insecticide near runways to kill insects so there is no food for birds to look for and releasing a special repellent with a smell birds can’t stand, the Shanghai Airport Authority said on Friday.

Other measures employed include playing recordings of natural predators and setting off explosive charges. Nets are being installed to prevent birds approaching in search of water or food.

Fingers crossed authorities will combat the birds and their nests.

Pictures by Danny Lee

The post Fuel surcharge is back, GZ gets new Jeddah flight and is on-board Wi-fi coming to Cathay? appeared first on The Nanfang.

HK Airlines dumps loss-making London service
Hong Kong Airlines seems to be in a tailspin. The airline already cancelled its all-business class service to London Gatwick only seven months after it announced the service amid much fanfare.

All tickets from September 3 were shown as sold out last week, which raised speculation the London route was about to fall under the axe. Poor planning and miscalculations have led to the service being “deep in the red” ever since the launch, according to the SCMP.

Post reporter Charlotte So has more figures on HK Airlines’ errors:

The operating cost of the 14-hour flight is estimated at HK$3 million, including fuel costs, crew allowances and inflight meals.

Insiders said the carrier burns about HK$1 million to HK$2 million a day on the service and around HK$10 million a month. The monthly losses are lower than they would normally be because the airline cancels the services from time to time depending on the demand.

The company blamed troubles in Europe for failing to lure passengers away from Cathay Pacific and British Airways.

Now, HK Airlines, backed by the HNA Group, owner of China’s fourth largest carrier Hainan Airlines, will attempt to build on its Asian connections.

In the days leading up to the cancellation of its London service the airline was cited by regulators for poor service, blocking any expansion to the fleet.  According to Reuters, this lead to HK Airlines cancelling its $3.8 billion order for 10 Airbus A380s.

Jeffrey Lowe, general manager of Asian Sky Group, a Hong Kong-based aviation consultants group told Reuters:

It sounds like a very diplomatic way to say that we think your safety standards are slipping so, until you can show us you can handle any additional aircraft being added to your fleet, we would not approve it.

And the airline is still reeling from Typhoon Vicente, taking over a week to clear the backlog of passengers caught up in the worst storm to batter the South China coast in 13 years.

The final flight will pick up Hong Kong’s Paralympians, as the official carrier for the athletes, from London on September 10.

Kangaroo versus Canton? The battle of the skies heats up
Guangzhou’s China Southern Airlines (CSA) is bringing out its best aircraft for its new Sydney-London route, adding pressure to competitors in the battle for passengers, profits and prestige.

CSA president and CEO Tan Wangeng told Australian Business Traveller the airline’s new 787 Dreamliner will be deployed on the route.

We will spare no effort in building the Canton Route into a premium product, using new Airbus A380 superjumbo and Boeing 787 Dreamliner aircraft.

The news will cause some concern at Qantas, where its struggling international outfit, including that of their Kangaroo Route via Singapore, faces stiff competition against the likes of Singapore Airlines, Cathay Pacific, Emirates and more.

China Southern will be the first airline to utilise the aircraft in British and Australian airspace beating both country’s own flagship carriers.

Japan-China seal Open-Skies deal
Japan and China have signed a new air deal boosting the number of flights between the two countries, liberalising the Sino-Japan market.

The deal, announced on August 8, will see new routes and increased frequencies which include Guangzhou-Tokyo Haneda for the first time. The pact has already roused interest with many Japanese-based airlines eyeing new departures to China.

Ethiopian u-turn on 787 service to Guangzhou
Ethiopian Airlines has dropped plans to deploy its new 787 Dreamliner to Guangzhou. While not good for passengers, it will be good news for China Southern which will have the honour of being the first carrier to utilise the newest aircraft in the mainland.

Hong Kong Airlines picture by Benson Kua on Flickr

The post Hong Kong Airlines dumps London service, new flights from Guangzhou to Japan appeared first on The Nanfang.

Baiyun Airport gets bigger, so will the number of Guangzhou’s airports
In the latest gathering of Guangzhou’s political decision-makers, the Standing Committee approved plans to construct a third runway at Baiyun Airport with construction starting this month. In other news, construction will begin on the airport’s new second terminal – just north of the existing facility – by the end of the year.

However, if that isn’t enough, China Daily reports that the airport extension is in line with current plans to create a second Guangzhou airport to the south of the city. If plans come to fruition, the PRD will become one of the most congested regional airspaces in the country catering for Guangzhou, Hong Kong, Zhuhai, Shenzhen and Macau.

China Southern’s first A380 international flight
There was a lot of hype, fanfare and attention on China Southern Airlines (CSA) newest arrival, the double-decker A380, last year. Then it headed into a year-long domestic exile. Now though, it’s going international: It’s off to Hollywood.

The carrier’s upgraded service will take off on October 12 as the first and only Chinese superjumbo to head across the Pacific.

While China Southern already flies to Los Angeles, it believes it can tap into a greater share of the Trans-Pacific market. In doing so, Airline Route reckons overall capacity will soar 78 per cent, meaning CSA has its work cut out for itself.

CSA has three superjumbos in its fleet with two more on the way, which will be deployed on international routes and primary domestic cities.

India’s SpiceJet heads to the PRD’s busiest airports
India’s budget airline SpiceJet has won government approval to expand international operations, starting with daily services to Hong Kong and Guangzhou. The Nanfang earlier reported on India’s aviation reforms aimed at revitalising the sector.

As SpiceJet plans for a China arrival, Dragonair prepares for a second Indian landing
Dragonair is extending its reach away from the Far East and South East Asia. Starting November 2, a new four-times-a-week service to Kolkata, in the eastern state of West Bengal, will take off. The move will also help support Cathay Pacific, its parent company, as a feeder and codeshare airline. Cathay already flies to five major Indian cities.

And two major updates on stories The Nanfang trailed last week on Shenzhen-Sydney, Delhi-Hong Kong-Osaka Kansai and Delhi-Hong Kong-Seoul Incheon. Air India is resuming flights to Seoul Incheon and Osaka Kansai via Hong Kong earlier than planned. The Delhi-Hong Kong-Osaka Kansai route resumes with three weekly flights starting on August 21 and Delhi-Hong Kong-Seoul Incheon resumes the following day with four flights a week.

Hainan Airlines has postponed resuming its Sydney service until December 3.

The post Guangzhou getting a new airport, India’s SpiceJet starts service to the PRD appeared first on The Nanfang.

From Baiyun to Addis Ababa
Ethiopian Airlines is one such airline shaking up its East Asian travel schedule. Currently, passengers flying from Guangzhou to the capital, Addis Ababa, have to stop in Bangkok. As of May 16^th however, passengers will be able to fly direct from Guangzhou to Addis Ababa seven days a week. The airline plans to continue the four flights per week route from Addis Ababa – Bangkok – Hong Kong, and a fifth weekly flight is slated for service as of August 16^th.

Baiyun to Madagascar
Air Madagascar is also boosting capacity later this year. As of October 28^th, passengers will be able to fly non-stop from Guangzhou to Madagascar’s Ivato International Airport without having to stop in Bangkok.

Baiyun to Dhaka
The national flag carrier of Bangladesh, Biman Bangladesh Airlines, has stated its intention to resume direct flights from Guangzhou to the capital Dhaka by next year. Biman has to confirm a date, as the airline is currently awaiting new aircraft.

Over in Hong Kong: Cathay to Chennai, now daily
Finally, as of August 31^st, Hong Kong’s Cathay Pacific will fly to Chennai, India, daily; upping its frequency from four flights per week to the south Asian nation.

Source: Airline Route

The post More options than ever for air travel from Guangzhou appeared first on The Nanfang.

The thrice-weekly flights (Wed, Fri and Sun) is good news for UK travellers. Those who flew Emirates, Air France, Lufthansa, Cathay Pacific and others to get to Guangdong’s provincial capital from the UK – or to fly over to Britain – will understand the extra transit travelling in the past, and at present.

China Southern at Hong Kong International Airport

For CSA, it’s their first direct flight into Britain, and while they already fly direct to Paris and Amsterdam, now businesses with a presence, workforce or trade partners can fly direct into Heathrow or possibly fly out for big events like the bi-annual Canton Fair, billed as one of Guangzhou’s biggest draws and China’s largest trade fair.

And for Heathrow and its airport operator BAA – it finally diversifies their destination offering in China, albeit a small move, compared to the vast connections from Paris Charles-de-Gaulle or Frankfurt.

However, as one arm gives, another taketh away at Baiyun Airport. Some time ago Lufthansa announced it was axing it’s Guangzhou service – terminating March 26. Guangzhou loses it’s only direct flight to Germany – leaving an important destination to be filled – perhaps by CSA since it flies to France and the Netherlands already, aided by fellow SkyTeam members Air France-KLM.

The post Baiyun Airport to get busier: new flights to London Heathrow direct appeared first on The Nanfang.