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LKY-2014-08 - TOP 12 AIRPORTS
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Formed and started operations in 2005. Formerly known as Shilin Airlines. Low-cost Carrier (LCC), domestic, regional, scheduled & charter, passenger & cargo, jet airplane services.
296 Lucky Air Building
Kunming City 650200, Yunnan, 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.
January 2006: Hainan Airlines (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 Shan'Xi Airlines (CHG) and to manage Chongqing Airlines (CHO (later to be renamed West Air).
February 2006: Lucky Air (LKY), based at Dali, in south-west China's Yunnan province, is leasing 3 737's from Shanxi Airlines (CHG) for domestic routes. It is a joint venture of the Hainan Airlines (HNA) Group, Shanxi Airlines (CHG) and Shilin Tourism and hopes to begin flying in the 1st quarter.
March 2006: Operates from Dali to Kunming, and Xi Shuang Ban Na, south of Dali. Plans to launch services linking Lijiang, in the north of the province, with Xi Shuang Ban Na and Kunming and will expand to other parts of China.
June 2007: (HNA) Group subsidiary Lucky Air (LKY) will launch "West Air (CHO)," Hainan Airlines (HNA)'s new Low Cost Carrier (LCC), by June 18 in Chongqing, with three 737-300s transferred from the parent company (HNA).
The new carrier is expected to receive its operating license from the (CAAC) (CAC) soon. It will join (HNA)'s other western venture, "West Air (CHO)," which it has been working on since December 2005 with the Chongqing Real Estate Group. That carrier has yet to be approved by the (CAAC) (CAC). (HNA) Group is the parent of Hainan Airlines (HNA).
Lucky Air (LKY) and Jianying Investment Co each hold a 35% stake in the new China West Air (CHO), with identical investments of CNY28 million/$3.7 million, while Sichuan Three Star General Aviation Co, Shenzhen Guorui Investment Co, and Xinjiang Siweida Technology Co each contributed CNY8 million for the remaining stakes.
With the skies over eastern China nearing saturation, several airlines are adopting a "Go West" strategy. (HNA)'s West Air (CHO) originally was slated to be called "Chongqing Airlines," but China Southern Airlines (GUN) had designs on its own western carrier and the same name. (HNA) had to rebrand to "West Air (CHO)" because (GUN) recently received (CAAC) (CAC) approval for its new subsidiary, which also is scheduled to launch next month. Meanwhile, Shenzhen Airlines (SHZ) plans to base its regional joint venture with Mesa Air Group, "Kunpeng Airlines," in Xi'an at year end.
Later, competition for passengers in western China intensified dramatically as China Southern Airlines (GUN) launched its new Chongqing Airlines (CGQ), while the (HNA) Group subsidiary, Lucky Air (LKY) began operating its Chongqing-based "West Air (CHO)."
Chongqing Airlines (CGQ) has noted that it mainly will target high-end customers and business travelers. It has one A320 and expects its inaugural flight to take place on July 8 to Beijing, after which it will start serving Guangzhou, Shenzhen and Shanghai. It expects to be flying three airplanes by year end and operating 10 by 2010, when it plans to introduce the A330 on international routes. But its initial priority is to develop a domestic network covering second-tier cities and tourist destinations.
Lucky Air (LKY) will forge a different path with its new carrier, which Lucky (LKY) CEO, and "West Air (CHO)" President, Ma Guohua said will operate as a point-to-point Low Cost Carrier (LCC) offering tourism packages in conjunction with Lucky (LKY). Shandong Airlines (SHG), based in Jinan, also has announced its intention to start a Chongqing-based airline soon.
September 2007: Hainan Airlines (HNA) posted a +CNY189.71 million/+ $25.18 million net profit in the first half of 2007, a better-than-eightfold 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" 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 "Grand China Air" Entity.
Earlier this year, (HNA) Group Chairman, Cheng Feng noted that its "Grand China Air" Entity will merge its subsidiaries including Hainan Airlines (HNA), Xinhua Airlines (XIH), Changan Airlines (CGN) and Shanxi Airlines (CHG) to become the country's fourth-largest commercial carrier. (HNA) currently holds 60% of Xinhua (XIH), 93.75% of Shanxi (CHG), and 81.16% of Changan (CGN). An internal source said that "Grand China Air" Holding will purchase the remaining outstanding shares of the carriers "very soon."
April 2008: Lucky Air (LKY) provides a scheduled service from Dali to Kunming and Xishuangbanna, but plans to expand to other areas of China.
Employees = 263.
(IATA) Code: 8L. (ICAO) Code: LKE.
Parent organization/shareholders: Shanxi Airlines (CHG) (51%); Hainan Airlines (HNA) (48.9%); & Yunnan Shilin Tourism Aviation (0.1%).
Subsidiary: China West Air (CHO).
Main Base: Dali City Airport (DLU).
June 2008: Hainan Airlines (HNA) is joining with the Yunnan local government in southwestern China to launch Yunnan Airlines (YUX), which will be comprised mainly of the assets of Lucky Air (LKY), an (HNA) subsidiary launched in 2006, that apparently will cease to exist. Based on an agreement signed between (HNA) and the Yunnan government, another (HNA) subsidiary, Grand China Air (GCH), will be the controlling stakeholder of the new Yunnan Airlines (YUX). The entity is reported to have a registered capital of more than >CNY3 billion/$43.3 million. According to (HNA) Chairman, Chen Feng, Lucky Air (LKY)'s six 737-700s will be operated by the new airline, which will aim to expand to a fleet of more than 30 airplanes within three years. He added that the carrier is interested in acquiring A330s and 767s to operate international routes to Southeast Asia countries. Industry analysts pointed out that it will challenge China Eastern Airlines (CEA)'S current dominant position in Yunnan.
October 2008: Lucky Air (LKY) recently decided to quit flying from Kunming to Dali and Xishuangbanna.
November 2008: Shenzhen Airlines (SHZ) plans to launch Kunming Airlines (KMG) in January in the capital of Yunnan Province. Preparations for Kunming Airlines (KMG)'s launch have been underway since 2004 and the carrier gained (CAAC) (CAC) approval in 2005. But for various reasons, the preparations were suspended for some time, before being revived earlier this year when Shenzhen Airlines (SHZ) came forward to say it would be the controlling stakeholder. It also will provide airplanes and Maintenance Repair & Overhaul (MRO) support.
Kunming Airlines (KMG) Chairman, Wang Qingmin noted that the carrier will launch with three airplanes, with plans to grow the fleet to 10 in 2009, 30 to 40 in 2010, 80 to 100 by 2015, and 150 to 200 by 2022. It eventually will open additional operating bases in Xi'an, Guangzhou, Tianjin, and Hangzhou.
Located in southwestern China, Yunnan is home to numerous resorts and is a popular tourist destination. Kunming Airlines (KMG) will not be without competition; Hainan Airlines (HNA) signed a cooperative agreement with the Yunnan government in June to launch Yunnan Airlines, which will be comprised mainly of the assets of Lucky Air (LKY).
Despite the Chinese government's attempt to ease the burden on airlines by reducing landing fees -20% in March, 29 Chinese carriers had failed to pay about CNY4 billion/$585.1 million combined to airports as of September 30, according to the China Civil Airports Association (CCAA). The (CCAA) noted that domestic airlines owed CNY532 million on February 29, with Hainan Airlines (HNA) in arrears -CNY102.2 million. China's big three of Air China (BEJ), China Southern Airlines (GUN), and China Eastern Airlines (CEA) owed CNY45.7 million, CNY64.9 million and CNY44.2 million, respectively. Smaller privately held carriers like East Star Airlines (ESR, Okay Airways (OKA), and Juneyao Airlines (JYA) are debtors as well. The (CCAA) Secretary General, Wang Jian said the defaults mainly comprise fees covering landing, parking and security services. Chengdu-based Eagle Airlines (UEG) reportedly has grounded two airplanes, owing to its shortage of liquid capital and severe debt burden. The (CCAA) said Eagle (UEG)'s defaults had reached CNY39.5 million as of February 29.
In order to defend airports' interests, the (CCAA) vowed to "take collective action" against defaulting carriers, but it backed off the stance later and said it had "constructive" talks with the China Air Transport Association, which represents domestic airlines. The organizations agreed to maintain communication in search of a solution.
February 2009: Undeterred by the operating environment that has resulted in steep losses at Chinese carriers, Shenzhen Airlines (SHZ) plans to go ahead with the launch of its Kunming Airlines (KMG) subsidiary on February 15 as it searches for a foothold in the Yunnan market. The new venture has registered capital of CNY80 million/$11.7 million, with Shenzhen holding an 80% stake. Private investor, Wang Qingmin will take the remaining 20% with a CNY16 million investment.
(KMG)'s inaugural flight will be a Kunming - Changsha - Harbin routing. It initially will operate two 737-700s and one 737-800 provided by (SHZ), which also will furnish cabin crew (FC)/(CA) and Maintenance, Repair & Overhaul (MRO) support.
(SHZ) has ambitious plans for Kunming. (KMG) will operate 10 airplanes by year end on 10 domestic routes, 30 to 40 airplanes by the end of next year, 80 to 100 by 2015, and 150 to 200 by 2022.
Located in southwestern China, Yunnan is home to numerous resorts and is a popular tourist destination. (KMG) will face competition. China Eastern Airlines (CEA), which boasts the largest share (39.5%) of the Yunnan market, plans to turn its provincial branch company into a separate subsidiary by selling shares to the Yunnan government. Hainan Airlines (HNA) signed an agreement with the provincial government last June to launch Yunnan Airlines, which will be comprised mainly of the assets of Lucky Air (LKY), which accounts for a 9.6% share of the market.
June 2009: China Eastern Airlines (CEA) has partnered with the Yunnan provincial government to launch a joint venture based on (CEA)'s Yunnan branch subsidiary that will endeavor to build Kunming into a regional hub. (CEA) is expected to sell a stake in the branch company to the government, although it is widely speculated that (CEA) will remain the controlling shareholder.
In February, (CEA) Chairman, Liu Shaoyong noted that the Shanghai-based carrier is looking to buttress its network with regional hubs at Kunming and Xi'an. Its Yunnan branch commands 45% of the provincial market and was profitable in the first quarter, although it did not disclose that figure. The new venture will face competition. Hainan Airlines (HNA) signed an agreement with the provincial government last June to launch Yunnan Airlines (YUN). It will be comprised mainly of the assets of Lucky Air (LKY), which accounts for 9.6% of the market.
Shenzhen Airlines (SHZ) launched Kunming Airlines (KMG) on February 15 and is looking at expanding its fleet to 10 airplanes by year end operating 10 domestic routes. It hopes to be operating 30 to 40 airplanes by the end of 2010, 80 to 100 by 2015, and 150 to 200 by 2022. It currently operates two 737-700s and one 737-800 provided by Shenzhen (SHZ).
Hainan Airlines (HNA) subsidiary Lucky Air (LKY) received a CNY290 million/$42.4 million capital injection from the Yunnan provincial government. (LKY) now has registered capital of CNY906 million, with (HNA) subsidiary Grand China Airlines (GCH) the controlling stakeholder at 68%. Yunnan will hold the remainder. The parties reached an agreement last June to launch a new carrier (Yunnan Airlines) based on (LKY)'s assets. A Yunnan official said that the Lucky (LKY) name will be maintained for the time being. (LKY) held an 18% market share as of March, second to China Eastern Airlines (CEA)'s Yunnan branch (45%). (CEA) and the government announced their own joint venture. (LKY) currently operates 10 airplanes on 448 weekly flights across 24 routes. (LKY) plans to expand to 30 airplanes over the next three years. This marks the third time (HNA) has received financial support from the government. Hainan Province injected CNY1.5 billion, while the Tianjin government put CNY200 million into Grand China Air (GCH).
July 2010: Lucky Air (LKY) provides a scheduled service from Dali and Kunming to Xishuangbanna and 21 Chinese cities, but plans to expand to other areas of China.
Employees = 750.
(IATA) Code: 8L - 859. (ICAO) Code: LKE (Callsign - LUCKY AIR).
Parent organization/shareholders: Shanxi Airlines (CHG) (51%); Hainan Airlines (HNA) (48.9%); & Yunnan Shilin Tourism Aviation (0.1%).
Airline subsidiaries/shareholdings: China West Air (CHO) (35%).
Main Base: Dali City Airport (DLU).
January 2011: 737-790 (30662, B-5268; 30663, B-5272), ex-Alaska Airlines (ASA), (ILF) leased to (HNA) for Lucky Air (LKY) operations.
May 2011: Hainan Airlines (HNA) relaunched Chongqing-based, China West Air (CHO) in conjunction with Chongqing Yufu Capital Management Company, which is controlled by the Chongqing municipal government. (HNA) didn’t reveal the exact figure but noted the combined investment was CNY3 billion/$460.8 million.
China West Air (CHO) was initially launched in 2006 with a registered capital of CNY80 million. (HNA) subsidiary Lucky Air (LKY) and Jianying Investment Company both hold a 35% stake and Shenzhen Guorui Investment Company, Sichuan Sanxing General Aviation Company and Xinjiang Siweida Technology Company all have a 10% stake in (CHO).
China West Air (CHO) operates a total fleet of nine airplanes, comprising four A319s, two 737-300s and three A320s on more than 20 domestic routes. (CHO) is expected to open international routes to Southeast Asia, Japan and South Korea by the end of 2012 and expand its fleet to 40 by 2015.
It is noteworthy that China Southern Airlines (GUN), which launched subsidiary Chongqing Airlines (CGQ) in 2006, signed a cooperation agreement this month with the Chongqing municipal government to enhance its position in Chongqing.
November 2011: A319-112 (2746, B-6221), ex-(D-AVYL), delivery.
July 2012: A320-214 (5220, B-6947), ex-(F-WWBK), Hainan Airlines (HNA) leased.
August 2012: Lucky Air (LKY) has introduced its first two A320-200s to its network deploying the airplanes on routes from its home base at Kunming Changshui International (KMG) to Hefei Luogang International (HFE) and via Wuhan Tianhe (WUH) to Hefei Luogang International (HFE) airports.
October 2012: Lucky Air (LKY) launched services on the 600 km domestic route in Mainland China from Kunming (KMG) to Nanning (NNG) on 28 October. Flights to the capital of the Guangxi region, located just north of the border to Vietnam, are now offered with daily frequencies and operated using 737-800s. Competition on the route comes from China Southern (GUN) and Kunming Airlines (KMG), which serve it each with also daily flights; in addition, China Eastern (CEA) offers six weekly frequencies. Lucky Air (LKA) already serves Nanning with thrice-weekly flights from Xiamen.
May 2013: Lucky Air (LKY), one of the many airline affiliates of the privately-owned (HNA) Group, has applied to China's aviation regulator (CAAC) for permission to expand its business licence from domestic services only, to include regional flights to Hong Kong, Taiwan, and Macau. Expansion to "regional" markets in greater China is usually the first step for Chinese carriers to eventually open international markets.
Kunming, the capital of Yunnan province in southern China, is already linked to Hong Kong and Taiwan but not Macau. Kunming - Hong Kong is served by Hong Kong Airlines (CRY), also affiliated with (HNA). Hong Kong sees the most international seats from Kunming, while Taipei is the sixth-most popular international route.
June 2013: 737-74P (39200, B-5806), Hainan Air (HNA) leased.
January 2014: Lucky Air (LKY) will launch its first international service linking Kunming and Singapore (via Guiyang) soon, to provide more traveling choices for local residents.
The Kunming - Guiyang - Singapore service will be offered twice weekly on Tuesday and Saturday. The outbound flight 8L9895 is scheduled to take off from Kunming Changshui International Airport (KMG) at 8:40 am and arrive in Singapore at 3:20 pm, with a stopover at Guiyang from 9:45 am to 11:15 am; while the return flight 8L9896 will depart from Singapore at 4:50 pm and land in Kunming at 11:30 pm, with a stopover at Guiyang from 8:55 pm to 10:25 pm (Specific time table is subject to official release).
The new international flight will facilitate travel to Southeast Asia with more choices, promoting Yunnan's overseas tours. Besides, another international flight is being planned.
A320-214 (3240, B-1825), ex-(EI-FDK), (AWAS) (AWW) leased.
June 2014: SEE ATTACHED - - "LKY-2014-06-CABIN ATTENDANTS" SHOWING THEIR UNIFORMS FOR FIFA WORLD CUP SOCCER IN BRAZIL.
August 2014: Starting from August 24, Lucky Air (LKY) will launch a non-stop service from Kunming to Taichung, which will be the first non-stop cross-strait flight between the two cities.
According to the airline's flight schedule, the Kunming - Taichung service will be offered every Sunday, with flight numbers 8L9885/6. The Taichung-bound flight is scheduled to take off from Kunming at 3:20 pm and arrive in Taichung at 6:05 pm, with the return flight departing from Taichung at 7:05 pm and reaching Kunming at 9:50 pm.
Located in western Taiwan, Taichung is the third largest city on the island after New Taipei City and Kaohsiung. Known for its numerous scenic pots and historical sites, the city attracts large numbers of tourists from mainland China. The opening of Kunming - Taichung service will provide more options for passengers traveling Taiwan, and further promote economic and cultural exchanges and cooperation in the area of economy, cultural and humanity between Yunnan Province, even the whole mainland and Taiwan.
Besides, (LKY) will open its Kunming - Koh Samui route on August 12.
Lucky Air (LKY) has begun thrice-weekly flights on the 1,748 km route between Kunming (KMG) and Koh Samui (USM) in Thailand. (LKY)’s A319s will operate the route, which was launched on August 12th, and is not served by any other carrier. This becomes (LKY)’s third international route as it already offers weekly flights between Kunming and Taichung in Taiwan, and between Guiyang and Singapore. Lucky Air (LKY) now operates almost 50 flights per day from Kunming Changshui International Airport, which last year handled 29.7 million passengers, making it China’s seventh busiest airport. With passenger growth of +23.8%, it was also the fastest-growing among China’s top 30 airports.
Lucky Air (LKY) has followed the introduction of international flights to Koh Samui in Thailand with the launch on August 24th of weekly (Sunday) flights from its main base at Kunming (KMG) to Taichung (RMQ) in Taiwan. The 1,798 km service will be operated by (LKY)’s 737-800s and will not face any competition. Flights will operate until October 19th.
Lucky Air (LKY) is currently the 14th busiest airline, ranked on seats offered from Chinese airports, but also the fastest-growing with year-on-year capacity up by around +20%. Operating since 2006 and 40% owned by Hainan Airlines (HNA) Group, (LKY) is based at Kunming Changshui International Airport, China’s 7th busiest airport, handling almost 30 million passengers in 2013. Earlier this year, Lucky Air (LKY) launched its first international route from Guiyang to Singapore, and recently launched flights from Kunming to Koh Samui in Thailand.
(LKY)’s fleet currently comprises 26 airplanes: 11 737-700s, eight 737-800s, three A319s and four A320s. (LKY) has confirmed that it handled 4.7 million passengers in 2013 and expects to increase that by around +14% in 2014 to 5.3 million. Its home base of Kunming is by far the busiest airport on its network, but has only seen year-on-year growth of around +5%, as much of (LKY)’s expansion has taken place elsewhere - - SEE CHART - - "LKY-2013-08 - TOP 12 AIRPORTS."
Lucky Air (LKY) is the second biggest carrier at Kunming, with around 11% of seat capacity, operating around 50 daily departures. China Eastern Airlines (CEA) is over three times bigger at Kunming, with around 180 daily departures and approximately 42% of weekly seats.
October 2014: Lucky Air (LKY) offered free-fee refund on flights between Kunming and Pu'er after a major earthquake. (LKY) said that the refund fee for round-trip flights between Kunming and Pu'er would be waived from October 8 to 25, so as to support the earthquake relief work and to provide safe and convenient journeys to passengers.
Passengers traveling to or from Pu'er Simao Airport (SYM) on a Lucky Air (LKY) flight could apply for free refund at the place of ticket issue or the airline's ticket offices before (including) October 25 if they met any of the following conditions:
1. The date of ticket issue was before (including) October 7, 2014 and the flight date was between October 8 - 25, 2014, without making any change to the ticket.
2. The ticket could be changed, but the date of issue and the date of change should both be before (including) October 7, 2014, and the flight dates before and after the change could be both between October 8 - 25, 2014.
3. As for round-trip, connecting or open tickets, if all flight segments are operated by Lucky Air (LKY), and any flight segment met one of the above conditions, passengers could apply for free refund for other flight segments.
December 2014: Lucky Air (LKY), which is based in the Chinese city of Kunming, will launch operations from Chengdu next year. (LKY) which is partly owned by Hainan Airlines (HNA), will base several Boeing 737 airplanes at Chengdu's Shuangliu International Airport from June 2015.
It plans to launch new services connecting the Sichuan capital with key Chinese cities, including Beijing, Guangzhou, Shanghai, Urumqi, Xi'an, Sanya, Lhasa, and Xiamen, before expanding internationally.
Prior to this, in December 2014 and January 2015, Lucky Air (LKY) will gradually build its presence at Chengdu with the launch of services to Jinan and Hangzhou, the respective capitals of eastern China's Shandong and Zhejiang provinces.
(LKY) will become the sixth airline with a base in Chengdu, following Air China (BEJ), Sichuan Airlines (SIC), Chengdu Airlines (UEG), China Eastern Airlines (CEA) and Tibet Airlines (TBZ).
February 2015: Lucky Air (LKY) on February 11th introduced thrice-weekly flights (Mondays, Wednesdays and Fridays) between Kunming (KMG) and Krabi (KBV) in Thailand. The 1,939 km route is already served by China Eastern Airlines (CEA) with weekly services. Flights will depart Kunming’s Changshui International Airport at 00:15, arriving at Krabi International Airport at 02:00. The return service will then leave Krabi at 03:00, getting back into Kunming at 06:45. All flights will be operated using (LKY)’s 737-800 airplanes. Lucky Air (LKY) now serves 32 destinations non-stop from Kunming, of which only Krabi, Koh Samui (also in Thailand) and Taichung (Taiwan) are outside of China.
March 2015: China's Lucky Air (LKY), a subsidiary of the (HNA) Group, unveiled its new logo (see attached - - "LKY-LOGO - 2015-03-A/B") and visual identity system (VIS) at a special press conference held in Kunming, marking a bold step forward in its brand building exercise.
The press conference started with a creative flash mob performance of the airline's pilots (FC) and flight attendants (CA).
(LKY)'s brand image was officially displayed through a runway show demonstrating 9 sets of clothing that combine the elements of the company, its corporate culture and brand identity.
The Kunming-based carrier selected red and yellow as the base colors in its logo design, with (LKY)'s name written in seal script, an ancient style of Chinese calligraphy.
The new logo of Lucky Air (LKY) breaks through the conventional conception and integrates the Chinese traditional culture in its design, said Ding Yongzheng, President of the airline.
The ancient Chinese characters represent (LKY)'s safety performance and strong competitiveness, delivering its young, fashion and creative brand image to the public, he added.
Lucky Air (LKY) was founded in 2006 as a member airline of the (HNA) Group. As of February 2015, (LKY) operates a fleet of 26 airplanes, comprising Boeing 737s and Airbus A320s.
As the second largest carrier based at Kunming Changshui International Airport (KMG), (LKY) retains the second largest airline in market share in the Yunan province.
(LKY) has bases in Kunming and Lijiang, and has set up a branch company in Chengdu. (LKY) provides 61 domestic and international routes to 50 destinations at home and abroad.
July 2015: News Item A-1: A 737-800 of Lucky Air (LKY) performing flight 8L9697 landed smoothly at Thailand's Phuket International Airport (HKT) on July 16, marking the official launch of the Kunming - Phuket service. This is (LKY)'s 3rd Thailand service after Kunming - Koh Sumei and Kunming - Krabi service.
The 1,934 km sector will operate the 3x-weekly service on Tuesdays, Thursdays and Saturdays, using a 737-800. The Phuket-bound flight 8L9697 is scheduled to take off from Kunming at 8:35 am and land in Phuket at 10:35 am, with the return flight 8L9698 leaving Phuket at 11:40 am and reaching Kunming at 3:40 pm (all local times).
In recent years, Thailand has been among the most popular tourism resorts, with an increasing number of passengers from the Yunnan province choosing to travel toward Southeast Asia. (LKY)'s new service toward Phuket will not only expand its international route network, but also further promote the tourism, trade, cultural and economic exchanges between Yunnan and Southeast Asia.
The airport pair is also served by China Eastern Airlines (CEA), which also operates a thrice-weekly service. Phuket becomes (LKY)’s 4Th international route from Kunming (after Krabi, Koh Samui, and Taichung) and 32nd in total.
737-84P (41809, B-6015), Hainan Airlines (HNA) leased.
August 2015: Lucky Air (LKY), a regional carrier based in Yunnan Province, is now waiting governmental approval to launch a 2x-weekly international service from Kunming to Japan's Osaka via Xuzhou in East China.
Pending government approval, (LKY) the Yunnan-based carrier will start operating the Kunming - Xuzhou - Osaka service from this September. The new passenger service will be operated by Boeing 737-800/Airbus A320 aircraft.
September 2015: Lucky Air (LKY) has enhanced its international offering from Kunming (KMG) with the introduction on September 10 of services on the 2,482 km route to Jeju (CJU) in South Korea. Flights operate 3x-weekly (Tuesdays, Thursdays and Saturdays), though the return flight arrives back in Kunming at 01:30 the following morning. No other carrier serves this airport pair. (LKY) now serves 31 destinations non-stop from Kunming, with five of those outside of China. Apart from Jeju, (LKY) also serves Koh Samui, Krabi, and Phuket in Thailand, and Taichung in Taiwan.
737-8MB (43883, B-6800), (ICBC) Leasing leased, and 737-84P (41811, B-6016), ex-(N1796B) delivery.
January 2016: News Item A-1: "Hainan Airlines (HNA) Subsidiaries Launch Low Cost Carrier (LCC) Alliance" by (ATW) Katie Cantle, January 18, 2016.
Hainan Airlines (HNA)’s 4 subsidiaries have formed a partnership being hailed as the world’s 1st low-cost carrier (LCC) alliance.
The "U-FLY Alliance" brings together Hong Kong-based Hong Kong Express Airlines (HKE), Kunming-based Lucky Air (LKY), Urumqi-based Urumqi Airlines (URQ) and Chongqing-based, West Air (CHO).
Member carriers said that under the U-Fly Alliance they will deepen their cooperation and optimize slots connection. Together, they operate a total of 67 aircraft on 168 routes with 298 daily departures covering 85 Asian destinations.
“With the launch of the 1st low cost carriers (LCC) alliance in the world, the air transport market will enter into a new era, when passengers can fly to more diversified destinations and enjoy more secure flying experience with much lower air fares” U-Fly Alliance Chairman Ma Zhimin said.
Meantime, the U-Fly alliance also promoted special launch fares on certain routes. The alliance said it plans to attract more member airlines to expand its route network in the coming days, but there was no mention of shared frequent flier or loyalty benefits.
Hainan Airlines (HNA) is not a member of any of the present three global alliances.
News Item A-2: China Aircraft Leasing Group (CALC) (CHD) has entered into the 2nd aircraft purchase agreements with Airbus (EDS) for +2 more Airbus A320-200ceo series aircraft, in addition to the agreement for acquiring 22 aircraft signed December 31, 2015, to cater to strong customer demand of the Group’s aircraft. (CHD) also announced it has signed letters of intent with 2 subsidiaries of the (HNA) Group, Lucky Air (LKY) and West Air (CHO) on January 5, 2016, for the leases of 2 A320ceos, respectively. These 4 aircraft are expected to be delivered in 2016.
News Item A-3: "Lucky Air Announces New Routes to Taiwan" by Xinhua, February 18, 2016.
Lucky Air (LKY) plans to launch direct flights between 2 cities in Yunnan Province and 2 in Taiwan, (LKY) the subsidiary of China's (HNA) Group announced on February 18.
Launching on February 27, the service between provincial capital Kunming and Taiwan's Hualien will be the 1st direct flight connecting the 2 cities, according to a statement from (LKY).
It will run once a week, using a Boeing 737-800. The outbound trip from Kunming will take 3 hours and 10 minutes, and the return journey just <4 hours.
Another flight linking Lijiang and Taipei will be launched on March 7.
An Airbus A320 will fly the route once a week in spring and winter, with 3x-weekly in summer and autumn. The outbound journey from Lijiang will take 3 hours and 50 minutes, with the return trip taking +5 minutes more.
February 2016: News Item A-1: Lucky Air (LKY) has added a weekly (Saturday) service between Kunming (KMG) and Hualien (HUN) in Taiwan. The 1,910 km route, which started on February 27, will be operated by (LKY)’s 737-800s and faces no direct competition.
In all, Lucky Air (LKY) currently serves 39 destinations non-stop from Kunming, of which 32 are in China. (LKY) already serves Taichung in Taiwan, as well as Jeju in South Korea, Nha Trang in Vietnam, and Koh Samui, Krabi and Phuket in Thailand.
News Item A-2: Luck Air (LKY) hires American female pilot:
March 2016: News Item A-1: "Hainan (HNA)’s Lucky Air (LKY) Rebrands as Low Cost Carrier" by (ATW) Katie Cantle, March 30, 2016.
Hainan Airlines (HNA)’s subsidiary, Lucky Air (LKY) has re-branded as a low cost carrier (LCC) to further explore the potential in the Chinese (LCC) market.
As one of the most profitable carriers among (HNA)’s subsidiaries, (LKY) operates a fleet of 28 aircraft with plans to expand to 40 aircraft this year. It has set up an operating base in Lijiang of Yunnan province and launched a branch company in Chengdu.
(LKY) is re-configuring its cabin into all-economy (Y) class and taking various measures to reduce operating costs at all levels. According to (LKY)’s Marketing Director Zhang Guoping, (LKY) has increased the ratio of direct sale to 51% from 30% last year and this figure is expected to reach 60% this year.
“So far, low-cost carrier (LCC)'s account for 26% share of global market, but China’s low-cost carriers (LCC)s are still in an early phase. But 80% of Chinese passengers are price-sensitive travelers and thus the business models of (LCC)s are more popular,” (LKY) President Ding Yongzheng said.
West Air (CHO) re-branded as a (LCC) in 2013. In addition, (HNA)’s 4 subsidiaries have formed a partnership, which has been hailed as the world’s 1st (LCC) alliance. The partners comprise Hong Kong Express Airlines (CRY), Lucky Air (LKY), Urumqi Airlines (URQ), and West Air (CHO).
News Item A-2: Lucky Air (LKY) on March 14 introduced weekly (Mondays) flights on the 2,103 km route between Lijiang (LJG) and Taipei Taoyuan (TPE). Frequency will increase to 3x-weekly from the beginning of April. The route will be flown by (LKY)’s A320s with no other carrier currently serving the market with direct flights. It is Lucky Air (LKY)’s 12th route from Lijiang, and 1st to Taipei.
August 2016: 737-8AL (61794, B-7990), (BOC) Aviation (SIL) leased. 737-84P (42160, B-7988), Aviation Capital Group leased.
September 2016: Tianjin Bohai Leasing has agreed to lease 2 Boeing 737-700s to fellow (HNA) Group subsidiary, Lucky Air (LKY).
On September 7, (LKY) signed an agreement with Nansha Bohai 4, a wholly-owned subsidiary of Bohai Capital, to transfer its 2 737 airplane deal which was inked with Boeing (TBC) previously; meanwhile, the 2 sides signed a lease agreement on the 2 737 airplains, Bohai Capital said in a stock exchange notice.
The 2 airplanes are being leased for 12 years at a quarterly rental of US$1.35 million.
Lucky Air (LKY) operates a fleet of 12 737-700s, 11 737-800s, 5 Airbus A320s and 3 A319s.
October 2016: 737-74P (39222, B-1565), delivery and leased 2nd 737-8AL (61796, B-7991) of 7 new 737-800s from (BOC) Aviation (SIL).
November 2016: News Item A-1: Hainan Airlines (HNA) announced on November 28 that its subsidiary, Yunan Lucky Air (LKY) is planning to set up a new carrier in Chengdu, capital city of SW China's Sichuan Province.
Lucky Air (LKY) will partner with local state-owned companies to invest 3 billion yuan in the new Chengdu Shenniao Airlines, which could become the 8th base carrier at Chengdu Shuangliu International Airport following Air China (BEJ) Southwest Brance, Sichuan Airlines (SIC), Chengdu Airlines (UEG), Tibet Airlines (TBZ), China Eastern Airlines (CEA) Sichuan, Shenzhen Airlines (SHZ) and Lucky Air (LKY).
(LKY), the Kunming-based carrier expects to invest up to 1.05 billion yuan in the joint venture (JV) and will own up to 35%. Yunnan Xiangpeng Investment Company, Ltd and Chengdu Communications Investment Group Company, Ltd. will hold 45% and 20% stakes in the new airline with 1.35 billion yuan and 600 million yuan, respectively. Based at Chengdu Shuangliu International Airport, the proposed airline will be a low cost carrier (LCC) operating domestic and international flights.
Hainan Airlines (HNA) said that the new proposed "Shenniao Airlines" aims to enhance its presence in Sichuan Province and increase its market shares in the region, so as to make profits. Shenniao Airlines becomes the latest in a series of new Chinese airlines launched by the (HNA) Group in recent years. Others include Fuzhou Airlines (FZH) in Fujian province, Urumqi Airlines (URQ) in the Xinjiang region, and GX Airlines (GXB) in Guangxi region. It has also created a new passenger airline in Shanghai, with the expansion of former cargo carrier Yangtze River Airlines (YTH).
* "China’s Lucky Air plans to launch (LCC) in Chengdu" by (ATW) Katie Cantle, November 30, 2016.
Hainan Airlines (HNA)’s low-cost carrier (LCC) subsidiary, Lucky Air (LKY) plans to launch a low-cost carrier (LCC) in the Sichuan Province capital of Chengdu in an effort to explore the market potential of SW China.
The new venture will be named "Shen Niao Airlines" and is expected to have a registered capital of CNY3 billion/$435 million. (LKY) will hold a 35% stake with a CNY1.05 billion investment, Lucky Investment Company will hold a 45% stake with a CNY1.35 billion investment, and Chengdu Communications Investment Group will hold a 20% stake with an investment of CNY600 million. Kunming-based (LKY) is making various preparations to establish the new entity and there is no formal launch date.
Hainan Airlines (HNA) said the move would help (LKY) enhance its position in Sichuan. (LKY) launched its own branch company in Chengdu in 2014.
Chinese carriers are seeking a deeper foothold in Chengdu as its new airport, Tianfu International, is scheduled to complete construction in 2019 and go into formal operation in 2020. The airport costs about CNY70 billion and is expected to handle 40 million passengers, 700,000 tonnes cargo goods and 320,000 aircraft movements annually by 2025.
Air China (BEJ) and Sichuan Airlines (SIC) are the dominant player of Sichuan market but China Eastern (CEA), Shenzhen Airlines (SHZ), Tibet Airlines (TBZ) and Chengdu Airlines (UEG) have all set up their own branch companies in Chengdu. China Southern (GUN) also plans to launch its branch company in Chengdu soon.
April 2017: Lucky Air (LKY) will launch Kunming - Manila and Kunming - Cebu routes on May 26 and June 1 to provide more capacity support for routes from Yunnan to the Philippines. The Kunming - Manila route is the 1st nonstop routes from Kunming to Manila, the capital of the Philippines, which is of great significance to improving communication and cooperation between China and the Philippines and assisting "The Belt and Road."
A 737-800 will fly these 2 routes. The Philippines is in the economic zone on Maritime Silk Road and is an important partner for China's "The Belt and Road" initiative. In 2017, (LKY) actively responds to the nation's development needs and will launch Kunming - Manila and Kunming - Cebu routes.
May 2017: Low cost carrier (LCC) Lucky Air (LKY), a Kunming-based subsidiary of the (HNA) Group, announced it will launch Kunming - Moscow services from June 12.
(LKY) plans to operate the Airbus A330-300 on the route, which will be 2x-weekly in June and increase to 3x-weekly in July.
Lucky has also applied to the Civil Aviation Administration of China (CAAC) to begin 1x-weekly Chengdu - Irkutsk, Russia, service from July using the Boeing 737-800.
(LKY) operates 45 aircraft on 113 routes, comprising 99 domestic routes and 14 international routes to neighboring Asian cities. It is the 2nd biggest Kunming-based carrier in Yunnan province after China Eastern Yunnan, with a 14% market share in Kunming and 17% market share in Lijiang. (LKY) also has plans to launch another low cost carrier based in Chengdu.
June 2017: The (HNA) Group's subsidiary Lucky Air (LKY) launched Kunming - Moscow Airbus A330-300 services June 12, becoming the 1st Chinese low-cost carrier (LCC) to open a long-haul intercontinental route. This new 2x-weekly service is expected to increase to 3x-weekly in July.
Lucky Air (LKY) President Ding Yongzheng called the new intercontinental service an initial success. He was optimistic about the outlook for developing (LCC)s and long-haul (LCC) operations in China.
Industry analysts said (LKY) can take advantage of its membership in U-Fly Alliance, which is the 1st global (LCC) alliance to seek international cooperation, optimize an international route network and accelerate the internationalization process.
(LKY) operates 45 aircraft on 99 routes, comprising 86 domestic routes and 13 international (regional) routes to neighboring Asian cities. It is the 2nd biggest Kunming-based carrier in Yunnan province after China Eastern Yunnan, with a 14% market share in Kunming and 17% market share in Lijiang.
(LKY) also has plans to launch another (LCC) based in Chengdu.
July 2017: (SMBC) Aviation Capital (SBC) and Chinese low-cost carrier (LCC) Lucky Air (LKY) have entered into an agreement for 4 Boeing 737 MAX 8s. This deal represents (SMBC) Aviation Capital’s 1st placement of the 737 MAX 8 from its order book with Boeing and (LKY)’s 1st order of a Boeing 737 MAX 8. The new 737 MAX 8s are scheduled to deliver in 2018 and 2019.
February 2018: 737-800 (60174, B-1209) (CDB) Leasing leased.
August 2018: Lucky Air (LKY) has become the latest (HNA) Group subsidiary to arrange a capital injection from a Chinese local government. (LKY) has signed a framework agreement for at least CNY200 million/$29 million of capital from an official investment company in its hometown, Kunming. The company, Kunming Xishan Development Investment Group, “will actively participate in the capital expansion of (LKY).”
November 2018: The Hainan Airlines (HNA) Group is reportedly seeking to divest its aviation businesses by selling Lucky Air (LKY). Talks are underway to sell a 60% stake in the low cost carrier (LCC) to China Eastern Airlines (CEA), and 40% to Yunnan (SASAC), the province’s state-owned asset regulator. (HNA) has already sold numerous overseas assets to ease mounting debts, but the move to sell (LKY) would be the 1st from its aviation portfolio.
Click below for photos:
LKY-A319 - 2016-11.jpg
LKY-A320 - 2014-08
LKY-A330-300 - 2017-06.jpg
3 737-300 (CFM56-3), (CHG) LEASED 2006-02.
1 737-7Q8 (CFM56-7B26) (1511-30674, /04 B-5246), (ILF) LEASED 2008-10. WITH WINGLETS. 12F, 112Y.
1 737-7V3 (CFM56-7B24) (1619-30676, /04 B-5292), EX-(N171LF) 2012-06. WITH WINGLETS. 12F, 112Y.
1 737-705 (CFM56-7B20) (230-29091, /99 B-5091), (NBB) LEASED 2009-06. 148Y.
1 737-74P (CFM56-7B) (39200, B-5806), (HNA) LEASED 2013-06.
1 737-74P (CFM56-7B) (39222, B-1565), 2016-10.
1 737-76N (CFM56-7B24) (154-28582, /98 B-5060; 163-28583, /98 B-5061; 173-28585, /98 B-5062), (GEF) LEASED 2006-08. 28582; 28585; RETURNED. 148Y.
2 737-790 (CFM56-7B24) (1273-30626, /03 B-5248; 1291-33011, /03 B-5249), (TCI) LEASED 2007-04. 12F, 112Y.
2 737-790 (CFM56-7B24) (1382-30662, B-5268; 1386-30663, B-5272), EX-(ASA), EX-(N648AS & N649AS), (ILF) LEASED 2011-01, WITH WINGLETS. 12F, 112Y.
3 737-8AL (CFM56-7B) (61778, B-1586; 61794, B-7990; 61796, B-7991), (BOC) AVIATION (SIL) LEASED 2016-08, 2016-10 & 2017-02. WITH WINGLETS. 8F, 156Y.
1 737-8AP (CFM56-7B), AVIATION CAPITAL GROUP LEASED 2016-08.
1 737-8MB (CFM56-7B) (43883, B-6800), (ICBC) LEASING LEASED 2015-09, WITH WINGLETS. 8F, 156Y.
2 737-8Q8 (CFM56-7B26) (212-28220, /99 B-2638; 273-28056, /99 B-2646), 2012-12. 8F, 156Y.
2 737-800 (CFM56-7B26) (60174, B-1209), (CDB) LEASING LEASED (2018-02). 8F, 156Y.
2 737-808 (CFM56-7B26) (2239-34967, /07 B-5407; 2265-34968, /07 B-5409), EX-(B-KXF & B-KXG) 2011-05. WITH WINGLETS. 8F, 156Y.
2 737-84P (CFM56-7B26) (345-29947, /99B-2647; 607-30474, /00 B-2651), 2012-12. 8F, 156Y.
1 737-84P (CFM56-7B26) (2380-35076, /07 B-5732), EX-(B-KBM) 2012-12. WITH WINGLETS. 8F, 156Y.
1 737-84P (CFM56-7B26) (41809, /15 B-6015), (HNA) LEASED 2015-07. WITH WINGLETS. 8F, 156Y.
1 737-84P (CFM56-7B26) (41811, /15 B-6016), EX-(N1796B) 2015-07. WITH WINGLETS. 8F, 156Y.
4 ORDERS (2018-02) 737 MAX 8 (LEAP-1A)/(1B) (SMBC) AVIATION CAPITAL LEASED TO LUCKY AIR (LKY):
2 A319-112 (CFM56-5B6) (2617, /05 B-6198; 2746, /06 B-6221), EX-(D-AVYL) 2011-11. 138Y.
1 A319-115 (CFM56-5B7) (2581, /05 B-6212), 2011-05. 138Y.
1 +1 ORDER A320ceo, 2016-06. 8C, 144Y.
1 A320-214 (3240, B-1825), EX-(EI-FDK), (AWW) LEASED 2014-01. 8C, 144Y.
3 A320-214 (CFM56-5B4) (5100, /12 B-6959; 5172, /12 B-6943; 5220, /12 B-6947), (EX-(F-WWBK), (HNA) LEASED 2012-07. 8C, 144Y.
1 A330-300, 2017-06.
MA GUOHUA, CHAIRMAN, PRESIDENT & CHIEF EXECUTIVE OFFICER (CEO) (ALSO OF (CHO).
BO HU, CHIEF EXECUTIVE OFFICER (CEO).
DING YONGZHENG, PRESIDENT (LKY).
GAOXIANG MU, CHIEF FINANCIAL OFFICER (CFO).
ZHANG GUOPING, MARKETING DIRECTOR.