China Air Industry Develops Too Fast

July 19, 2007
China's aviation authority reported the collective profit of Chinese air carriers topped CNY900 million ($118 million) in the first four months of 2007,

China's aviation authority reported the collective profit of Chinese air carriers topped CNY900 million ($118 million) in the first four months of 2007, reversing a loss of four times that amount a year earlier.

The group acknowledged the industry was developing too fast, pointing out carriers had added 45 aircraft in the first four months of the year and they are expected to take delivery of a total of 150 aircraft in 2007 and another 140 new aircraft in 2008, 160 in 2009, and 140 in 2010.

Cargo traffic grew 14.6% to 1.5 million tonnes through April and is expected to reach 1.8 million tonnes for the first half.

Meanwhile, US carriers Continental Airlines, Delta Air Lines, Northwest Airlines and US Airways launched formal bids to operate new services to China. The new services will become available under an expanded aviation agreement between the US and China signed recently.

Continental wants to fly daily service between Newark and Shanghai (originating in Cleveland). Delta has applied to serve Shanghai from Atlanta and daily to Beijing. Northwest wants to serve both Beijing and Shanghai from Detroit. And US Airways, which previously applied to operate a Philadelphia-Shanghai route, has expanded its application to include daily Beijing service from Philadelphia (originating in Charlotte).

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