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Name: QINGDAO AIRLINES
7JetSet7 Code: QDO
Status: Operational
Region: CHINA
City: QINGDAO
Country: CHINA
Employees 47
Web: qingdaoairlines.com
Email: info@qingdaoairlines.com
Telephone:
Fax:
Sita:
Background
(definitions)

Click below for data links:
QDO-2016-12 - New Qingdao Jiaodong Airport - A.jpg
QDO-2016-12 - New Qingdao Jiaodong Airport - B.jpg
QDO-Cabin Attendant - 2015-05.jpg
QDO-Cabin Attendants - 2015-05-A.jpg
QDO-CABIN ATTENDANTS-A-2014-04
QDO-CABIN ATTENDANTS-B-2014-04
QDO-CABIN ATTENDANTS-C-2014-04
QDO-Flight Crew Cabin Attendants -2015-05.jpg
QDO-LOGO

Formed and started operations in 2014.

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 2014: Qingdao Airlines (QDO) is a proposed Chinese start-up to be established by Air China (BEJ), the Nashan Group and the Qingdao Municipal Government. (QDO) plans to launch in the 1st half of 2014 with leased A320 equipment and two CRJ700 airplanes leased from Shandong Airlines (SHG). Qingdao Airlines (QDO) announced an order for a total of 23 A320 family airplanes, including five A320ceo and 18 A320neo with the first delivery expected in 2016.

February 2014: Newly established Qingdao Airlines (QDA) has filed an application to the Civil Aviation Administration of China (CAAC) (CAC)for an air operation certificate (AOC) for domestic passenger and cargo flights. The (CAAC) completed a preliminary check and released details on the its official website on February 21st.

Officially founded on June 6, 2013, Qingdao Airlines (QDA) is a joint venture (JV) funded by the Nanshan Group Company, the Qingdao Municipal Transport Development Group Company (QMTD), and Shandong Airlines (SHG). Based at Qingdao Liuting International Airport (TAO), the new entity has a registered capital of 1 billion yuan/$161 million, of which 55% will be invested by the Nanshan Group with 550 million yuan, 25% by the (QMTD) with 250 million yuan and 20% by (SHG) with airplanes. The company will be a limited company with Liu Jianping, ex-General Manager of Dalian Airlines Company Ltd as its legal representative and General Manager.

The Qingdao-based airline has made preparations for the application for operation license from the (CAAC). It was approved by the National Development & Reform Commission to lease three Airbus A320s in 2014 and receive two CRJ700s from (SHG). (SHG) also signed an office rental contract with Qingdao International Expo and an agency agreement on airport ground services with Qingdao International Airport Group Company Ltd.

Moreover, the aviation authority has given the green light to the painting plan of its airplanes. The (CAAC) Southeast Regional Administration assigned 132.000 MHZ as its management channel frequency and Qingdao air traffic control (ATC) station agreed to provide civil aviation communication, meteorology and flight information for the airlines.

After the airline was registered officially by the International Civil Aviation Organization (ICAO), the Air Traffic Management Bureau of the (CAAC) assigned "RLH" code for the airline; while the International Air Transport Association (IATA) assigned it the "QW" code and "912" code for accounting. What's more, the new airline also made other preparations, including insurance, legal articles, and more.

Currently, the airline company has recruited 19 pilots (FC), 25 maintenance (MT) staff, 4 flight dispatchers, 18 flight attendants (CA), 4 transport staff and 7 safety personnel for the initial operation.

Besides, it is learned that (QDO) is scheduled to make its maiden flight in March 2014 and plans to introduce 51 airplanes in six years between 2014 and 2020, and expand its fleet to 100 airplanes by 2025.

The (CAAC) has begun soliciting submissions on Qingdao Airlines (QDO) and said that the approval would be granted unless it was informed of reasonable grounds to reconsider the plan before March 6, 2014. The airline is expected to heighten market competition and aggravate the overcapacity problem in the domestic airline industry.

Since the regulator has loosened its grip on approving new domestic airlines, many new entrants have sprung up, such as Hangzhou-based, Loong Airlines, which started formal operations last December. Ruili Airlines has received its operator’s license, while Fuzhou Airlines and Jiuyuan Airlines have both been approved to launch. Since 2013, six new domestic carriers have been approved to begin operations.

Some provincial or municipal governments are now taking an active part in starting local airlines in conjunction with domestic carriers to stimulate local Gross Domestic Product (GDP) growth. Of China’s 34 provinces, 25 have launched or are preparing to launch local airlines.

Industry analysts say these new entrants face fierce competition from legacy carriers for airport slots owing to slots shortages in China, especially at Beijing and Shanghai, as well as shortages of pilots (FC) and Maintenance Technicians (MT) staff. In addition, the overcapacity problem could be worsened with many more new airplane deliveries, making it difficult for domestic airlines to raise decreasing airfares, further impacting their financial performance.

April 2014: Qingdao Airlines ((IATA) Code: QW, Qingdao) (QDO) is set to take delivery of its first A320-200 from Airbus Industrie (EDS) ahead of its April 26 launch. The start-up's first of the type, A320-200 (6061, B-9955), was recently spotted at Hamburg Finkenwerder painted in full Qingdao Airlines (QDO) livery.

In addition to its three leased A320-200s, (QDO) will also use two CRJ-700s (10118, B-3079) and (10120, B-3080), sourced from Shandong Airlines ((IATA) Code: SC, based at Jinan) (SHG).

Qingdao Airlines (QDO) is a joint-venture (JV) between Shandong Airlines (SHG), the Nanshan Group, and the Qingdao Municipal Government.

(IATA) Code: QW. (ICAO) Code: QDA.

Chinese startup Qingdao Airlines (QDO) has taken delivery of its first sharklet-equipped Airbus A320, on lease from Hong Kong-based China Aircraft Leasing Company. (QDO) will make its first scheduled flight from Qingdao in Eastern China to Chengdu, capital city of Sichuan Province in Southwestern China, later in April.

The A320, powered by (CFM) International (CFM56) engines, features a comfort two-class cabin with 8C business and 144Y economy class seats.

The airline formally launched in June 2013 and placed an order for 23 A320 family airplanes in September 2013, with delivery expected to begin in 2016. The airline had said in September it would start operation in 2014 with a leased A320 airplane.

At 11:12 am on April 26, an Airbus A320 airplane with about 150 passengers took off from Qingdao Liuting International Airport (TAO) and headed toward Chengdu, capital city of Sichuan in southwest China, marking that Qingdao Airlines (QW) commenced commercial operation officially.

The Qingdao - Chengdu service is being operated daily with an A320 airplane, which was delivered to the airline on April 11. The A320, powered by (CFM56) engines, features a comfort two-class cabin with 8C business and 144Y economy class seats.

According to information from VeryZhun app., the inaugural flight from Qingdao to Chengdu took off from (TAO) at 11:12 am and arrived at Chengdu Shuangliu International Airport (CTU) at 2:07 pm, with a 2 hours and 45 minutes journey.

In the future, the Qingdao-based airline will open more domestic routes to Shenzhen, Changsha and Shenyang, successively, apply for flight slots in Beijing, Shanghai, Guangzhou and other major cities, and set overnight bases in Beijing, Shanghai, Shenzhen, Chengdu, and Xiamen, to build an extensive network covering the whole country.

In September 2013, Qingdao Airlines (QDO) placed an order for 23 A320 Family airplanes - 5 A320s and 18 A320neos, deliveries of which will begin in 2016. According to the planning of the airline, up to 50 medium-range airplanes will be introduced in six years between 2014 and 2020. And by 2025, the newly established airline is expected to handle 20 million passengers annually and achieve main revenue of 20 billion yuan, aiming to be a large-size carrier in China.

(QDO) received its air operator's certificate (AOC) from the Civil Aviation Administration of China (CAAC) in March 2014.

May 2014: Qingdao Airlines (QDO) launched its first route on April 26th between Qingdao (TAO) and Chengdu (CTU), operating daily with leased A320s. The 1,640 km route is already served on a daily basis by four other carriers: Air China (BEJ), China Eastern Airlines (CEA), Shandong Airlines (SHG), and Sichuan Airlines (SIC). Last September (QDO) signed a deal with Airbus for five A320CEOs and 18 A320NEOs. Qingdao Liuting International Airport ranked as China’s 17th busiest airport in 2012, handling 12.6 million passengers.

September 2014: A brand new Airbus A320 airplane equipped with sharklets landed at Qingdao Liuting International Airport (TAO) on September 27 after a flight from France and joined the fleet of Qingdao Airlines (QDO). This is the third A320 for the Qingdao-based airline.

The newly introduced A320 airplane, equipped with fuel-saving sharklets, features a two-class cabin with a capacity of 158 seats - 8C in business class and 150Y in economy class.

The airline will start operating this brand new A320 on Qingdao - Nanjing - Haikou service from September 8, to provide more choices for travelers from Qingdao to Northeast China.

Since its maiden flight on April 26, (QDO) has opened several popular domestic services to Beijing, Chengdu, Changchun, Changsha, Harbin, Hailar and Shanghai Pudong, using its two A320 airplanes. The new arrival will help expand its fleet and enrich its network. According to the planning of the airline, up to 50 medium-range airplanes will be introduced in six years between 2014 and 2020. Building itself into a "boutique airline", Qingdao Airlines (QDO) aims to own a fleet of 100 airplanes by 2025, handling 20 million passengers annually and achieve main revenue of 20 billion yuan, to be a large-size carrier in China.

December 2014: Qingdao Liuting International Airport (TAO) welcomed its 16 millionth passenger this year on December 21, marking a new milestone for the airport in traffic performance.

As of December 21, the airport handled up to 16.02 million passengers, a +12.9% increase year on year, with airplane movements up +9.9% to 138,000 and cargo volume up +9.7% to 198,000 tonnes.

In 2013, Qingdao airport was the 16th busiest airport in China with 14.52 million passengers. It is expected to become the nation's 14th busiest airport this year.

There are three airlines based at the airport (Shandong Airlines (SHG), China Eastern Airlines (CEA) and Qingdao Airlines (QDO). A total of 36 airlines are operating at the airport, launching 111 routes that connect the airport with 76 destinations (61 domestic destinations, 12 international destinations and 4 regional destinations).

In December 2013, the Chinese government approved the construction of Qingdao Jiaodong International Airport, which will replace Liuting as Qingdao's main airport.

January 2015: A320-214 (6413, B-1648), ex-(F-WWDN), China Aircraft Leasing.

February 2015: Qingdao Airlines (QDO) announced that its 1st non-stop flight to Guiyang, the capital of SW China's Guizhou province, is to take off on March 1, according to the Chinese language "Qingdao Evening Paper."

The newspaper said the air route would operate an Airbus A320 on the route. The flight is scheduled daily, and departs from Qingdao Airport at 1:50 pm and arrives at Guiyang Airport at 4:55 pm. The whole journey is estimated to take about 3 hours.

Qingdao Airlines (QDO) will launch a special discount promotion for the new flights during the so-called "Spring Festival" rush, known as "Chunyun" in Chinese, from February 4 to March 15.

March 2015: Qingdao Airlines (QDO), the Chinese carrier that launched during 2014 and is part-owned by Shandong Airlines (SHG), has launched a new domestic service from its base at Qingdao (TAO). On March 1st, (QDO) started operating daily flights on the 1,722 km service to Guiyang (KWE), a route not served by any other carrier. The route will be flown by 1 of (QDO)’s growing fleet of A320s. (QDO) now operates daily flights from Qingdao to 9 domestic destinations including Beijing, Chengdu, and Shanghai.

A320-214 (6608, B-1693), ex-(F-WWBF), China Aircaft Leasing Company (CALC) leased.

June 2015: China Aircraft Leasing Group (CALC) (CHD) has completed delivery of its 5th Airbus A320 airplanes to Qingdao Airlines (QDO) on May 29, at Airbus (EDS) facilities in Toulouse, France.

July 2015: A320-214 (6681, B-1695), ex-(F-WWIC), (GEF) leased.

August 2015: News Item A-1: Qingdao Airlines (QDO) is expected to sell its 25% stake owned by the Qingdao Transport Development Group for CNY251 million/$40.4 million in an effort to become fully privatized.

(QDO) has a registered capital of CNY1 billion. In addition to the 25% stake owned by the Qingdao Transport Development Group, Nanshan Group holds a 55% stake and Shandong Airlines (SHG) holds 20%.

In July, Shandong Airlines (SHG) transferred its 20% stake to a subsidiary of the Nanshan Group.

Qingdao Airlines (QDO) said becoming fully privatized would “bring more flexibility” and make it easier to fulfill its plan of launching an initial public offering (IPO).

Launched in April 2014, (QDO) operates a fleet of 6 Airbus A320s on >10 domestic routes from Qingdao to Beijing, Chengdu, Changsha, and Harbin. It is scheduled to take delivery of +3 more aircraft by the end of this year and expand its fleet to 60 aircraft by 2020.

News Item A-2: Qingdao Airlines ((IATA) Code: QW, based at Qingdao) (QDO) is to be re-branded "Xinlong Air" in the wake of plans to massively restructure its shareholding later this month.

A filing with the Qingdao Property Rights Exchange shows that at the end of last month, the state-backed Qingdao Transport Development Group Company announced plans to dispose of its 25% stake for CNY251 million/USD40.4 million. The parastatal is currently holding public consultations with a decision expected by the end of the month.

In the same vein, another shareholder Shandong Airlines ((IATA) Code SC, based at Jinan) (SHG) has also put in motion plans to sell off its 20% stake to New Nanshan International Holdings Ltd, a subsidiary of Xinlong's largest shareholder, the Nanshan Group. Should the sale go through, it would give Nanshan Group a 75% stake in the carrier thus shifting its ownership structure from public/private to exclusively private.

With 6 A320-200s, (QDO) currently serves Changsha Datuopu, Chengdu, and Harbin from its Qingdao hub. Plans are in the pipeline to grow its fleet to 60 airplanes by 2020 and 100 by 2025.

(QDO) currently operates 6 aircraft to 4 destinations in China, on 3 routes and 6 daily flights.

September 2015: Air China (BEJ)’s subsidiary, Shandong Airlines (SHG) will sell its 20% stake in Qingdao Airlines (QDO) for CNY200.8 million/32.8 million.

In July, Shandong Airlines (SHG) transferred its 20% stake to a subsidiary of the Nanshan Group, but Shandong Airlines (SHG) so far hasn’t identified which company would purchase the stake.

Qingdao Airlines (QDO), the Qingdao-based carrier has a registered capital of CNY1 billion, in which the Nanshan Group holds 55% ownership, while Shandong Airlines (SHG) holds 20% and Qingdao Transport Development Group (QTDG) holds the remaining 25%. In August, (QTDG) sold its 25% stake in Qingdao Airlines (QDO) to the Nanshan Group for CNY251 million.

After the deal is complete, (QDO) is expected to be renamed as “Xinlong Airlines.” (QDO) has posted consecutive net losses since its launch in June 2013. It posted a net loss of -CNY29.16 million in 2013 and -CNY172 million in 2014. It also reported a net deficit of -CNY105 million for the 1st 7 months of this year.

(QDO) operates 6 Airbus A320-200s on >18 domestic routes. It plans to expand its fleet to 50 aircraft in 2020 and to 100 in 2025.

February 2016: (CFM) International’s (CFM56-5B) engine was selected by Qingdao Airlines (QDO) to power 5 purchased Airbus A320ceo aircraft. The order is valued at $100 million at list prices. The aircraft order was announced in September 2013 and (QDO) will begin taking delivery later this year. To support its fleet, (QDO) also signed a 12-year Materials Services Agreement.

Qingdao Airlines (QDO), which is owned by Nanshan Group, is based in the Eastern Chinese coastal city of Qingdao, Shandong Province. (QDO) took delivery of its 1st leased A320ceo powered by (CFM56) engines in April 2014 and currently operates a fleet of 9 aircraft on routes to 5 destinations throughout China.

The (CFM56-5B) is their engine of choice for the Airbus A320ceo (current engine option) family and is popular with major airlines, low-cost carrier (LCC)s, and leasing companies alike, having been selected to power 55% of all aircraft currently in service or on order. Almost 7,200 (CFM56-5B) engines have been delivered to date to operators around the globe. Primary factors behind the engine's broad-based market acceptance include this industry's best reliability, durability, low cost of ownership, and world-class customer and product support.

June 2016: China’s privately run Nanshan Group which owns Qingdao Airlines (QDO) has purchased a 19.98% stake in Virgin Australia (VOZ) from Air New Zealand (ANZ). (ANZ) will sell the stake in (VOZ) at 0.33A$ a share to the Nanshan Group. This transaction makes Nanshan the second Chinese company within a month to invest in (VOZ).

“We believe the Nanshan Group will be a very strong, positive and complementary shareholder for (VOZ),” (ANZ) Chairman Tony Carter said. “The sale will allow (ANZ) to focus on its own growth opportunities, while still continuing its long-standing alliance with Virgin Australia (VOZ) on the trans-Tasman network.”

(ANZ) holds a 25.9% stake in (VOZ) and is considering options on the rest of its (VOZ) shares. Other stakeholders include Singapore Airlines (SIA), which received approval from the Foreign Investment Review Board to boost its stake in Virgin Australia (VOZ) to 25.9% and Abu Dhabi-based Etihad Airways (EHD), which holds a 25.1% stake in (VOZ).

At the end of May, the (HNA) Group announced it would invest A$159 million/$114 million to buy a 13% stake in (VOZ) for A$0.3 per share and plans to increase the stake to 19.99%.

(VOZ) noted the tie-up would boost access to the “rapidly growing Chinese travel market” and has applied to introduce direct flights between Australia and China.

(VOZ) said it expects Nanshan to seek a seat on its board. “We look forward to meeting with the Nanshan Group over the coming weeks to discuss the proposed acquisition,” it said. The deal still needs approval from Chinese regulators.

September 2016: (TRU) Simulation & Training has been selected by Qingdao Airlines (QDO) for the delivery of 1 A320 full flight simulator (FFS) and 1 A320 Flat Panel Trainer. The (TRU) (FFS) X will be equipped with a new EP-8100 image generator from Rockwell Collins, a Moog fully electric motion system, a front-projected collimated visual display and (TRU)’s latest generation of an intuitive instructor operating station that includes Upset Prevention & Recovery Training functionalities. Both devices will be delivered in July 2017 to (QDO)’s Training Center in Longkou, China.

November 2016: A320-214 (6995, B-8430), ex-(F-WHUE) delivery.

December 2016: News Item A-01: Qingdao Liuting International Airport continues to record high annual passenger throughput. As of December 22, it exceeded 20 million, an increase of +9.9% year on year. The high figures signal a new golden period in the airport's development.

Airport passenger throughput is an important indicator for assessing a city's economic strength. During the 12th Five-Year Plan period (2011 - 2015), Qingdao, a dynamic coastal city in Shandong province, witnessed rapid social and economic development. The number of passengers at the Qingdao Liuting International Airport kept soaring.

In 2010, the airport handled >10 million passengers for the 1st time, making it the top airport in the Shandong province and the 15th largest airport in terms of passenger flow in China. In 2015, the airport handled 18.2 million passengers, 208,000 metric tons of cargo and 154,600 flights. It saw an average annual growth of +8.4% for passengers, 10.4% for cargo and 4.9% for flights during the 12th 5-Year Plan period (2011 - 2015).

The airport's passenger throughput is forecast to reach 26 million and its flights to reach 231,000 by 2020, which would make the airport an important hub in all of NE Asia, according to airport authorities. Currently the airport has a 170,000 sq m passenger terminal, a 31,800 sq m cargo terminal, a 3,400 m runway and 64 aircraft gates.

Passengers can reach 86 domestic and overseas cities through the airport's 146 regular routes.

>40 airlines have launched operations at the airport, including the Qingdao branch of Shandong Airlines (SHG) and the Shandong branch of China Eastern Airlines (CEA).

News Item A-2: "New Airport to Replace Qingdao Liuting International Airport" by "China Daily" December 26, 2016.

Qingdao Jiaodong International Airport, which will be operational by the end of 2019, is due to replace Qingdao Liuting International Airport as the city's main airport, according to news from the Qingdao Airport Group. The new airport, located approximately 39 km NW of Qingdao, will feature a 478,000 sq m terminal and is forecast to serve 35 million passengers in 2025 and 55 million by 2045.

Moreover, passengers will find it very convenient to reach the airport from Qingdao and other cities in Shandong province, since the airport will be linked to Qingdao's downtown area and its neighboring cities by a dense road network and urban railway system featuring expressways and high-speed trains.

See attached - "QDO-2016-12 - New Qingdao Jiaodong Aiport - A/B.jpg."

May 2017: A320-214 (7569, B-8986), ex-(B-000H) delivery.

Fleet:
(definitions)

Click below for photos:
QDO-A320-200 3RD 2014-09
QDO-A320-2014-04
QDO-A320-214 - 2015-05.jpg

September 2017:

23 ORDERS A320 FAMILY AIRPLANES:

5 A320-214 (CFM56-5B) (6061, B-9955; 6413, B-1648, 6608, B-1693), CHINA AIRCRAFT LEASING COMPANY (CALC) LSD 2014-04. 2015-01 & 2015-05. WITH SHARKLETS. 8C, 150Y.

1 A320-214 (CFM56-5B) (6681, B-1695), EX-(F-WWIC), (GEF) LSD 2015-07. 8C, 150Y.

3 A320-214 (CFM56-5B) (6993, B-8442; 6995, B-8430; 7569, B-8986), EX-(F-WHUE), 2016-11, EX-(B-OOOH) 2017-05. 8C, 150Y.

2 CRJ-700 (10118, B-3079; 10120, B-3080), (SHG) LSD.

Management:
(definitions)

SONG ZUOWEN, CHAIRMAN.

LIU JIANPING, GENERAL MANAGER, EX-DALIAN AIRLINES (2014-02).

 
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