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ESTABLISHED IN 1988 AND STARTED OPERATIONS IN 2001. DOMESTIC, SCHEDULED AND CHARTER, PASSENGER & CARGO, JET AIRPLANE SERVICES.
32 TAIYU ROAD
TAIYUAN 030001, (SHANXI), CHINA
China (People's Republic of China) was established in 1949, it covers an area of 9,560,980 sq km, its population is 1,265 million, its capital city is Beijing, and its official language is Chinese.
MAY 1997: D B A CHINA EASTERN AIRLINES (CEA) - SHANXI BRANCH.
LARGEST GENERAL AVIATION OPERATOR IN CHINA. TO 36 CITIES.
+3 ORDERS (JUNE & JULY 1997) 737-300'S. +3 ORDERS (1998) 737-300'S.
(AMECO) (BEJ) WILL DO INITIAL "C" CHECKS, THEN SHAN XI (CHG) WILL DO OWN, AT TAIYUAN MAINTENANCE BASE.
1 737-300 TO BE BASED AT WEN ZHOU.
JUNE 1997: NEW ROUTE TO GUILIN, VIA XI'AN.
DID 1ST "A" CHECK (PQ977).
1ST 737-36N DELIVERY, (GUI) LEASED (CEREMONY WITH PRESIDENT BOEING INTERNATIONAL, & (CASC), + VICE GOVERNOR OF SHAN XI PROVINCE).
JULY 1997: 2ND 737-300 DELIVERY. 3RD 737-300 DELIVERY. PLANS TO PURCHASE +3 737-300'S (JUNE 1998).
SEPT 1997: TAKEN OVER IN MERGER WITH CHINA EASTERN AIRLINES (CEA).
OCTOBER 1997: QIN LI SUO, VICE DIRECTOR LINE MAINTENANCE & YU QIANG, VICE DIRECTOR MAINTENANCE & ENGINEERING EXCHANGED JOBS.
NOV 1997: CHINA GENERAL AVIATION MERGES WITH CHINA EASTERN AIRLINES (CEA) TO BECOME CHINA EASTERN AIRLINES - HUBEI BRANCH.
MARCH 1998: LIU SHAO YONG, GENERAL MANAGER.
APRIL 1998: 3,791 EMPLOYEES.
JULY 1998: NOW NAMED "SHANXI BRANCH OF CHINA EASTERN AIRLINES" (CEA).
AUGUST 1998: 1ST 737-300 (PR141) FROM BOEING. OTHER 3 ARE (PQ977; PQ979; PQ981), GECAS (GEH) LEASED. TO DO "C" CHECK ON (PQ981) ON SITE. OTHER 2 WERE DONE AT CHENGDU.
SEPTEMBER 1998: 737-39P (29411) DELIVERY. 737-300'S (PQ977; PQ979, & PQ981) ARE (GECAS) (GEH) LEASED.
OCTOBER 1998: XING FENG, TECHNICAL LIBRARY DIRECTOR.
NOVEMBER 1998: 4 DHC-6'S TWIN OTTERS SOLD TO FLIGHT CENTER, AIRCRAFT SALES.
JUNE 1999: 1 737-300, ZHONGYUAN AIRLINES (ZHO) 1 YEAR LEASED, TO REPLACE 1 YAK 42D (B2935).
DECEMBER 1999: AWAITING DECISION BY CHINA EASTERN AIRLINES (CEA), RE-10 737-NG AIRPLANES, AS REGARDS HOW THEY WILL BE SHARED OUT AMONGST 3 BRANCH AIRLINES: SHANXI AIRLINES (CHG), HEBEI, SHIJIAZHUANG; AND, CHANGCHENG, NINGBO.
2 ORDERS 737-300'S, CHINA SOUTHWEST CHONGQING (CHO), TO BE LEASED IN MARCH 2000 TO REPLACE 737-300 TO BE RETURNED TO ZHONGYANG AIRLINES (ZHO).
APRIL 2000: 1 737-3L9 (24570), SALE (SIL) 2 YEAR LEASED.
DECEMBER 2000: CHINA EASTERN AIRLINES (CEA) 1ST 9 MONTHS = 9.33 BILLION (RPK) TRAFFIC, 6.81 MILLION PASSENGERS (PAX).
MARCH 2001: 10 ORDERS (SEPTEMBER 2002) 737-700'S.
June 2002: 1 737-76Q (30282, B-2680), Boullioun (BOU) leased.
September 2002: 1 737-79P (33038) delivery.
October 2002: (CAAC) (CAC) announces the formation of 6 aviation groups: Air China Group (China National Aviation Holding Company); China Eastern Airlines (CEA); China Southern Airlines (GUN); China Aviation Oil Group; China Aviation Information Group; and China Aviation Equipment Group. These groups will operate independently. The (CAC) no longer owns the state-owned assets of these groups, and will not take responsibility for their operating losses. The (CAC) cuts its economic ties with these companies, and retreats to functioning only as an industry regulator. The assets of the 3 consolidated airline groups, comprise 80% of the industry's total assets. Their strength and ability to compete internationally, has been significantly enhanced through this restructuring.
737-79P (33038, B-2682), delivery for China Eastern Airlines (CEA)'s Shijiazhuang Branch.
November 2002: 2 737-79P's (33040; 28253), (ILF) leased.
June 2003: 2 737-300's, leased to China Eastern Wuhan Airlines (WUH).
August 2004: Chine Eastern Airlines (CEA), as parent has 5 orders Blended Winglet shipsets as Buyer Furnished Equipment (BFE) to be installed on delivery of 737-800's in 2005 for subsidiaries China Eastern Shanxi Branch (CHG), Taiyuan, and Wuhan Airlines (WUH).
Shanxi Airlines (CHG) is forming Shilin Airlines, Yunnan, owned by (CHG) (51%); Hainan Airlines (HNA) (48.9%), & Yunnan Shilin Tourism Aviation (0.1%), to operate 1 737, 1 Bombardier Dash 8, & 3 Dornier 328JETS.
September 2004: 150 employees.
China's airline consolidation in 2002 resulted in Hainan Airlines (HNA) acquiring Shanxi Airlines (CHG) in a deal approved by the state authorities.
(CHG) operates scheduled & charter, domestic passenger services.
November 2004: Parent Hainan Airlines (HNA) has 3 orders (June 2005) 737-800's for Shanxi Airlines (CHG) operations.
August 2005: 737-84P (32603, B-5135), Hainan Airlines (HNA) wet-leased.
October 2005: Global financier, George Soros agrees to invest +$25 million more in Hainan Airlines (HNA), doubling his investment (he had made a $25 million investment in (HNA) in 1995 to buy 14.8% of (HNA). The funds will go to "Grand China Air," a carrier (HNA) is putting together by merging 3 smaller rivals. (HNA), China's 4th-largest carrier, will merge with 3 smaller airlines (Xinhua (XIH), Chang An (CGN) and Shan Xi (CHG)) to form "Grand China Air." An (HNA) spokesperson said that USA financier George Soros agreed over the weekend to invest $25 million for approximately 4% of the new carrier. (HNA) is trying to raise $1.06 billion to buy airplanes and add routes ahead of the 2008 Summer Olympics and the 2010 Shanghai World Exposition.
Other reports stated (HNA) was moving to set up a Low-Cost Carrier (LCC) to be named "Lucky Air" (LKY) using 737's from its wholly owned subsidiary Shanxi Airlines (CHG) and to manage Chongqing Airlines (CHO).
February 2006: Lucky Air (LKY), based at Dali, is leasing 3 737's from Shanxi Airlines (CHG) for domestic routes. It is a joint venture of the (HNA) Group, (CHG) and Shilin Tourism and hopes to begin flying in the 1st Quarter.
Chinese domestic airlines flew a record 138 million passengers in 2005, a rise of +15% over 2004 and double the number of 2000. The figure is expected to double again in the next 5 years, according to Gao Geng, the Vice Minister of the General Administration of Civil Aviation in China. Cargo and airmail throughput rose +14% to 3.04 million tons in 2005 and also is expected to double in the next 5 years. However, profit margins will remain tight within the sector. He noted revenues in the sector had grown to CNY170 billion/$21.09 billion at the end of 2005, but profits in the past 5 years had amounted to only CNY10 billion.
July 2006: Shanxi Airlines (CHG) operates schheduled, domestic, passenger services.
Uses Hainan Airlines (HNA) (IATA) code: HU & 8C.
(ICAO): (CXI) (Callsign - SHANXI).
Parent organization/shareholders: Hainan Airlines (HNA) (92.51%), & Changan Airlines (CHG).
Owns: Lucky Air (LKY).
Main Base: Taiyuan Wusu airport (TYN).
April 2007: "Grand China Air" (GCH) the company established in 2004, combining (HNA) Group's Hainan Airlines (HNA), Xinhua Airlines (XIH), Changan Airlines (CGN), and Shanxi Airlines (CHG), received its operating license from the (CAAC) (CAC), the Center for Asia Pacific Aviation (CAPA) said. The way now is paved for (GCH) to complete a listing in Hong Kong, possibly as early as the 2nd half of this year. (CAPA) Executive Chairman Peter Harbison said the listing could raise up to $500 million. (HNA), once a leisure-only carrier, now derives 16% of its capacity from Beijing, and only 9% from Haikou, the capital of Hainan Province. (HNA) plans to add 2 737-800s, 3 A319s and 2 A330s to its fleet of 101 airplanes this year. (HNA) Group's expansion plans also include its new regional, Grand Xinhua Express (GXE).
September 2007: Hainan Airlines (HNA) posted a +CNY189.71 million/+ $25.18 million net profit in the 1st half of 2007, a better-than-8fold increase over +CNY20.8 million earned in the year-ago period, on a +13.1% lift in operating revenues to CNY6.53 billion.
(HNA) credited the strong performance to improvements in operating efficiency and "reinforcement of its branding value," while industry analysts also cited "bullish domestic market demands" and appreciation of the yuan. Operating expenses rose +16.14% to CNY5.36 billion. Passenger boardings jumped +21.2% to 7.47 million while cargo traffic grew +15.45% to 1.14 billion (FTK)s.
Concurrent with the earnings announcement, the company said that "Grand China Air" (GCH) Holding has decided to purchase 31.7% of (HNA) subsidiary, Lucky Air (LKY) from another subsidiary, Shanxi Airlines (CHG). This is in line with (HNA)'s plan for the launch of its (GCH) entity.
Earlier this year, (HNA) Group Chairman Cheng Feng noted that its (GCH) entity will merge its subsidiaries including (HNA), Xinhua Airlines (XIH), Changan Airlines (CGN) and Shanxi Airlines (CHG) to become the country's 4th-largest commercial carrier. (HNA) currently holds 60% of (XIH), 93.75% of (CHG), and 81.16% of (CGN). An internal source said that (GCH) Holding will purchase the remaining outstanding shares of the carriers "very soon."
November 2007: (HNA) Group's "Grand China Air (GCA)," designed to be the country's 4th-largest commercial carrier, is scheduled to be launched on November 29 in Haikou, capital of Hainan Province, according to (HNA) Chairman Chen Feng. Hainan Development Holding Company holds 40.65% of (GCA) with an investment of CNY1.5 billion, while Hainan Airlines (HNA) invested CNY900 million in a 24.08% stake. Other investors include Starstep, Yangtze River Investment, Pan American Aviation Holdings, Qiye Industrial Investment, Union Trans-Atlantic, and Perfect Star Investment. To pave the way for (GCA)'s launch, Chen resigned as (HNA) Chairman on November 1. (GCA) will be the controlling stakeholder in (HNA) and under Chinese regulations, the Chairman of a company that is the controlling stakeholder of a listed company cannot also Chair the listed company.
(GCA) will to merge (XIH), (CGN), and (CHG) into 1 entity. (HNA) currently holds 60% of (XIH), 93.75% of (CHG), and 81.16% of (CGN). (GCA) will aim to purchase the remaining outstanding shares of those carriers "very soon." Chen also noted that the new entity plans to be listed on the Hong Kong stock exchange. "(HNA) aims to solve its high debt ratio, by reorganizing to launch (GCA) and to list in Hong Kong, as the debt ratio would negatively impact raising funds for fleet expansion," he said. (HNA)'s debt ratio was about 80% in the 3rd quarter.
(GCA), created by the (HNA) Group to be the country's 4th-largest commercial carrier, operated its 1st flight from Beijing to Dalian, although it postponed the ceremony to mark its launch to next month. (GCA) will operate under the (IATA) code of CN. It is noteworthy that it chose to operate out of Beijing, while its headquarters remains in the provincial capital of Haikou. An industry insider said that (GCA) "has no other alternatives," as the Hainan provincial government made its CNY1.5 billion investment contingent on the headquarters remaining in the province. "Meantime, (CAC) also wouldn't approve its name as (GCA) unless it is based in Beijing. (HNA) has the ambition to be a national carrier, so it didn't want to give up the name." (HNA) said it will merge (HNA), (XIH), (CGN), and (CHG) into 1 entity "very soon," after which it will list on the Hong Kong Stock Exchange. Even then it will have a long way to go to catch the Big 3 of Air China (BEJ), China Southern Airlines (GUN), and China Eastern Airlines (CEA), which hold a combined 80% share of the domestic market, while (GCA) grabs just 9%.
July 2010: Shanxi Airlines (CHG) operates scheduled, domestic, passenger jet airplane services.
Employees = 111.
Uses Hainan Airlines (HNA) (IATA) code: HU & 8C.
(ICAO): (CXI) (Callsign - SHANXI).
Parent organization/shareholders: Hainan Airlines (HNA) (96.97%).
Airline subsidiaries/shareholdings: Lucky Air (LKY) (51%).
Main Base: Taiyuan Wusu airport (TYN).
September 2011: Hainan Airlines (HNA) reported a 1st-half net profit of +CNY669.52 million/+$104.7 million, up +20.2% compared to net income of +CNY556.83 million in the year-ago period, owing to “robust growth of domestic market demand.”
Operating revenue jumped +19.6% to CNY11.56 billion, while operating expenses rose +18.1% to CNY8.74 billion. Passenger boardings rose +4.3% to 9.6 million, with an average load factor of 83.7% LF, up +2.5 points year-over-year. Cargo traffic volume decreased -2.3% to 132,100 tonnes. Average airplane utilization rate reduced -10.9% to 9.46 hrs.
As of June 30, (HNA) operated a total fleet of 105 airplanes, comprising 6 737-300s, 9 737-400s, 72 737-800s, 3 A330-300s, 7 A330-200s, 3 A340-600s, 3 767-300s and 2 737-700s.
(HNA) announced its 3 subsidiaries also earned healthy 1st-half profits. China Xinhua Airlines (XIH) earned a net profit of +197.9 million, Chang’an Airlines (CGN) posted a net income of +51.1 million and Shanxi Airlines (CHG) reported a net profit of +27.4 million.
0 737-37K (CFM56-3) (2547-27283, /94, B-2935), (ZHO) 1 YR LSD 1999-06, RTND (ZHO)/(GUN).
0 737-3L9 (CFM56-3) (1800-24570, /90, B-2653), EX-(MRS)/(CRM), (SIL) 2 YR LSD 2000-04. RTND 2002-05, LST (ASW).
3 737-36N (CFM56-3C1) (2888-28560, /97, B-2977; 2896-285611, /97, B-2978; 2908-28562, /97, B-2979), (GEH) LSD, (CEA) WET-LSD.
2 ORDERS 737-300 (CFM56-3), (CHO) LSD.
3 737-39P (CFM56-3) (3053-29410, /98, B-2571; 3071-29411, /98; 3080-29412, /98, B-2573), (CEA) LSD.
1 737-76Q (CFM56-7B24) (1143-30282, B-2680, 2002-06). 148Y.
3 737-76N (CFM56-7B24) (154-28582, /98 B-5060; 163-28583, /98 B-5061; 173-28585, B-5062), (HNA) WET-LSD 2003-01. 148Y.
3 +3 ORDERS 737-79P (CFM56-7B24) (1219-33038, B-2682, 2002-09; 1244-33040, 2002-11; 1247-28253, 2002-11, (ILF) LSD; 1267-30651, B-5030, 2003-01; 30657, B-5033), (ILF) LSD. 148Y.
1 +2 ORDERS 737-84P (CFM56-7B26) (1766-32603, /05 B-5135, 2005-08), (HNA) WET-LSD. 8F, 156Y.
0 AN-30 (1409; 1410; 1501) BROKEN-UP 2000-08.
2 BEECH SUPER KING AIR 200.
9 BELL 212.
1 DHC-6 TWIN OTTER (4 823, 4, 6, 548 SOLD 1998-08).
1 DORNIER 328JET.
5 HAMC Y-12.
8 SAP Y-5.
1 YAKOVLEV YAK-42D, 1 RETIRED IN 2000-03.
2 AVIC Y7-100 (WJ 5A1) (12705, /93 B-3701; 12708, /93 B-3703), 50Y.
1 AVIC X7-100C (WJ 5A1) (12707, /93 B-3702), 50Y.
JINKAO ZHANG, CHIEF EXECUTIVE OFFICER (CEO) & MANAGING DIRECTOR.
QIN JIANMING, PRESIDENT.
YUE FAN, FINANCE DIRECTOR.
LI WEN XIN, EXECUTIVE VP & PARTY SECRETARY (1998-10).
LIU CHANG CHUN, VP MAINTENANCE & ENGINEERING (1998-10).
QIN LI SOU, DIRECTOR MAINTENANCE (1998-10).
YU QIANG, VICE DIRECTOR MAINTENANCE (1997-10).
WANG JIN TAO, CHIEF ENGINEER (2000-06).
XING FENG, TECHNICAL LIBRARY DIRECTOR (1998-10).
YAN LI XIN, DIRECTOR RELIABILITY & COMPUTING.