[photopress:air_Chinese_airlines_1.jpg,full,alignright]In the story below Boeing expresses its regrets that 60 748 Dreamliners had been delayed. In truth, it might have to express its regrets that a lot of those orders have been cancelled.
The airline fuel price crunch, which IATA CEO Giovanni Bisignani called ‘an extraordinary crisis,’ is having its effect on China aviation.
China Eastern Airlines will cut flights to Asian, European, African and American destinations due to rising costs.
China Southern Airlines will cut flights from Guangzhou to Ho Chi Minh City, Hanoi, Angkor, Hong Kong, Seoul and Singapore for the months of June, July, August and September. Flights to Seoul, Los Angeles, Paris, Sydney, Jakarta, Lagos, Dubai, Delhi, Fukuoka and Penang will be cut as well.
Luo Zhuping, board secretary of China Eastern, said the company is considering cutting international flights but the reduction will be gradual.He said, ‘Besides the soaring fuel prices, a major pressure is from the declining domestic and international market demand arising from the weaker international economy.’
Two other major airlines, Air China and Shanghai Airlines, have said they had no plans to trim flights at the moment but will take other actions to reduce costs.
Air China’s costs will rise by RMB300 million ($43.22 million) if the price of fuel goes up by RMB100 per ton. But Wang Kai, from the board secretary’s office in Air China, said the company will not cut flights because of its high occupancy rate. Air China’s occupancy rate for international flights was 74.8% in the first four months of this year, higher than China Eastern’s 66%.
Wang Kai said, ‘Air China can cover around 70% of extra costs through aviation fuel hedging, fuel surcharge and internal fuel-saving measures,’
Wang Wanlong, spokesman for Shanghai Airlines, said the company isn’t under much financial pressure from rising fuel prices because of its limited number of flights. Shanghai Airlines has less than 10 international flights, much less than 98 international routes China Eastern serves.
Source: China Daily and BizChina Update and China Daily