Source: Dow Jones Newswires Author: Patricia Jiayi Ho 06/08/2009
Subject Concerned: Aircraft Airlines
China's aviation industry is likely to fare significantly better this year than last year alongside the recovery in the domestic economy, the chairman of aviation firm HNA Group said on June 8.
Domestic demand for air travel has been strong, and the impact of the swine flu scare should subside as the weather warms up over the summer, Chen Feng said at the launch of Tianjin Airlines Co., a new airline born out of HNA unit Grand China Express Air Co.
HNA, also the parent of China's fourth-largest airline by fleet size, Hainan Airlines Co., said in a statement that Tianjin Airlines' fleet would reach 100 aircraft by 2012.
Tianjin Airlines now has about 50 jets, comprising 24 medium-sized planes with about 50-100 seats each and 29 small aircraft with about 30 seats each.
The new aircraft will mainly be 100-150 seat planes, Chen said. HNA will consider buying Airbus planes assembled at the European aircraft maker's Tianjin factory, he said.
HNA Group owns 83.15% of Tianjin Airlines, having contributed 1.08 billion yuan of its 1.3 billion yuan registered capital. Tianjin Port Free Trade Zone Investment Co. owns a 15.38% stake, having contributed 200 million yuan, and Hainan Airlines owns the remaining 1.47% after contributing 19 million yuan.