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FORMED AND STARTS OPERATIONS IN 1994. DOMESTIC & REGIONAL, SCHEDULED AND CHARTER, PASSENGER, JET AIRPLANE SERVICES.
JIL NAN, YAOQIANG AIRPORT
SHAN SONG PROVINCE
JINAN 250107, 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.
China is a country in East Asia, the world's third largest country by area (after Russia and Canada) and the largest by population. It is bordered on the north by the Republic of Mongolia and Russia, on the northeast by Russia and North Korea, on the east by the Yellow Sea and the East China Sea, on the south by the South China Sea, Vietnam, Laos, Myanmar (formerly Burma), India, Bhutan, and Nepal, on the west by Pakistan, Afghanistan, and Tajikistan, and on the northwest by Kyrgyzstan and Kazakhstan. China includes more than >3,400 offshore islands. The total area of China is 9,571,300 sq km/3,695,500 sq mi, not including Hong Kong, Macau, and land under the control of the Republic of China on Taiwan. The capital of China is Beijing; the country's most populous urban center is Shanghai.
MAY 1995: DISSOLVED ITS ASSOCIATION WITH CHINA EASTERN AIRLINES (CEA). NOW 100% OWNED BY SHANDONG PROVINCE.
TO BEIJING, CHANGCHUN, CHENGDU, DALIAN, FUZHOU, GUANGZHOU, HAIKOU, HARBIN, KUNMING, QINGDAO, SHANGHAI, SHENYANG, XIAMEN, SHENZHEN, WENZHOU, AND WULUMAI.
TO INCREASE FLEET TO 12 BY 2000. $120 MILLION, 3 ORDERS 737-35N'S (PQ391; PQ392).
MARCH 1996: 1 737-300 DELIVERY, 141 PASSENGERS (PAX).
JULY 1996: TRYING TO OBTAIN (CNAC) 737-500 (25191). ANOTHER AIRLINE IS ALSO ATTEMPTING TO OBTAIN IT. INTENDS TO LEASE +2 SAAB 340'S AIRPLANES. WUHAN AIRLINES (WUH) IS NEGOTIATING TO PURCHASE THE SHANDONG AIRLINES (SHG) Y-7, & LEASE 3RD 737 (PQ393).
OCTOBER 1996: 1 737-300 (CFM56-3C1) (PQ393) DELIVERY.
NOVEMBER 1996: CONSIDERING 2 TO 3 737'S, & 1 757, IN 1997.
DECEMBER 1996: SHENYANG - YENTAI - JINAN (SAAB 340).
APRIL 1997: MR MA, ADVISOR TO PRESIDENT, INDICATED INTEREST IN WESTERN STYLE, BUSINESS MANAGEMENT.
AUGUST 1997: TO PURCHASE 2 737-300'S IN 1998, & +1, IN 1999.
SEPTEMBER 1997: MR SUN, PRESIDENT SAID A(SHG) HAS BECOME PROFITABLE MUCH QUICKER THAN HIS EXPECTATIONS.
1ST 6 MONTHS = +$707,000 (NET PROFIT).
1 ORDER (JULY 1998) 737-300. +1 737-300 OR 737-700 IN SEPTEMBER 1998, THEN 3 ORDERS 737-700'S (DECEMBER 1999). PLANS TO ORDER 4 SAAB 2000'S.
OCTOBER 1997: NEW XINXING "STAR AIRLINE" ALLIANCE WITH 5 REGIONAL AIRLINES: SHENZHEN AIRLINES (SHZ), HAINAN AIRLINES (HNA), ZHONYANG AIRLINES (ZHO), SICHUAN AIRLINES (SIC), & WUHAN AIRLINES (WUH) TO SHARE PARTS, TECHNICAL FACILITIES & RESOURCES, CHECK-IN, & PRE-FLIGHT SERVICES.
DECEMBER 1997: FREIGHT SERVICE HAULING FISH TO SEOUL, KOREA (SAAB 340A, BASED IN QINGDAO).
PURCHASES AIRLINE IN XIAN, SHAANXI PROVINCE, WHICH OPERATES 7 Y-7 TWIN ENGINE TURBOPROPS HIGH WING, SIMILAR TO F-27'S, 44 PAX, 1,000 NAUTICAL MILES RANGE.
FEB 1998: FREIGHTER SERVICE TO SEOUL (SAAB 340A), CARRYING FISH.
MARCH 1998: TO RECEIVE 2 737-300'S, IN JUNE & SEPTEMBER 1998.
MAY 1998: JOINT VENTURE, WITH (TAECO) (35%) & SHANDONG AIRLINES (SHG) (65%) FOR MAINTENANCE CHECKS ON TRANSPORT AIRPLANES.
JULY 1998: +4 SAAB 340A'S, LEASED. 1 737-35N (29315) DELIVERY.
AUGUST 1998: 4TH SAAB 340A DELIVERY, FOR OPERATIONS FROM QINGDAO. 5TH SAAB 340A. WILL BE BASED AT JINAN.
SEPTEMBER 1998: 5TH 737-35N (CFM56-3C1) (29316) DELIVERY.
JANUARY 1999: PLANS JOINT VENTURE WITH XIAMEN REPAIR COMPANY, & 2 HONG KONG COMPANIES TO HAVE AN AIRPLANE INSPECTION & REPAIR STATION IN JINAN, WITH SHANDONG AIRLINES (SHG) OWNING 65%, USING (SHG) HANGAR.
4 SAAB 340B'S (336; 351; 357; 360), EX-FORMOSA AIRLINES (FRM), SEAN-HO LEASED.
FEBRUARY 1999: AS PART OF NEW JOINT VENTURE, PLANS FOR "C" CHECKS ON 737'S IN JINAN, AND LARGER AIRPLANES IN XIAMEN.
SHANDONG AIRLINES (SHG) ENGINEERING, NOW HAS 3 DIVISIONS: 1 ENGINEERING & MAINTENANCE ADMINISTRATION; 2 ADVANCED (JOINT VENTURE) MAINTENANCE & ENGINEERING COMPANY, BASED IN JINAN; 3 BASIC ENGINEERING COMPANY, BASED IN QINGDAO, WHICH DOES "A" CHECKS.
MARCH 1999: NEW JOINT VENTURE COMPANY CALLED "(STAECO)," WITH ZHAO FENG XIANG, PRESIDENT, EX-SHANDONG AIRLINES (SHG).
JIANG MING HUA (TRUMAN), PRESIDENT, ENGINEERING DEPARTMENT, (SHG). MISS YU XIAO, HEAD TECHNICAL LIBRARY, FOR (SHG), AND STAECO.
(CAAC) (CAC) MANDATES THAT ALL PILOTS (FC) LEARN ENGLISH.
APRIL 1999: 300 EMPLOYEES. (http://www.shandongair.com).
MAY 1999: SUN DE HAN, PRESIDENT VISITS BOMBARDIER FOR POSSIBLE ORDER OF REGIONAL JETS.
AUGUST 1999: 3 NEW TECHNICAL CONSULTANTS ADDED TO STAFF, WHO ARE RECENTLY RETIRED AVIATION EXPERTS FROM AIR CHINA (BEJ).
NOVEMBER 1999: HE GUO BIN, DIRECTOR MAINTENANCE REPLACES ZHAO FENG XIANG, ALTHOUGH IS STILL PRESIDENT OF STAECO.
5 ORDERS BOMBARDIER CRJ-200'S, 50 PAX (OCTOBER 2000), & 5 OPTIONS CRJ-700'S, 70 PAX.
DECEMBER 1999: HE GUO BIN, PRESIDENT STAECO.
1ST 9 MONTHS = 82.04 MILLION (RPK) PASSENGER TRAFFIC, 1.27 MILLION (FTK) FREIGHT TRAFFIC, 756,000 PASSENGERS (PAX).
FEBRUARY 2000: POSSIBLE 2 ORDERS 737-300'S (PM413, B-2534; PM414, B-2595).
MARCH 2000: 2 737-3ZO'S (26070; 26072), EX-CHINA SOUTHWEST (XIN), (GECAS) (GEH) 7 YEAR LEASED. 10 ORDERS BOMBARDIER CRJ-700'S.
APRIL 2000: 300 EMPLOYEES. (firstname.lastname@example.org).
JUNE 2000: (CAAC) (CAC) TO BAN ALL CHINESE-MADE, YUN AIRPLANES FROM ALL SCHEDULED PASSENGER FLIGHTS FROM JUNE 2001.
JULY 2000: 1999 = 820 MILLION (RPK) TRAFFIC; 1.27 MILLION (FTK) FREIGHT TRAFFIC; 756,000 PASSENGERS (PAX).
OCTOBER 2000: LETTER OF INTENT (LOI) TO TAKE MAJORITY STAKE IN SHANXI AVIATION.
1ST BOMBARDIER CRJ-200 DELIVERY.
NOVEMBER 2000: 2ND BOMBARDIER CRJ-200 DELIVERY (7443, B-3006),
TO BE USED FOR FLIGHTS TO SHANGHAI, NACHANG, AND WEIHAI.
DECEMBER 2000: INITIATES TALKS TO TAKE OVER CHINA NORTHWEST AIRLINES (CNW).
1/37 ORDERS CESSNA GRAND CARAVANS. 2 ORDERS CESSNA CARAVAN 675 FLOAT PLANES.
JANUARY 2001: REGIONAL ROUTE BETWEEN QINGDAO (SHANDONG PROVINCE), TO GOLMOD (IN WESTERN QINGHAI PROVINCE), VIA ZNENZHOU (HENAN PROVINCE), AND XINING (QINGHAI PROVINCE), TAKES 4 HOURS, INCLUDING 2 STOPOVERS, MAKING IT ONE OF THE LONGEST AND MOST REMOTE, REGIONAL JET ROUTES IN THE WORLD.
LEASES 3 CRJ-200ER'S, FROM TYROLEAN AIRWAYS, FOR 16 MONTHS.
FEBRUARY 2001: LETTER OF INTENT (LOI) 4 ORDERS CHALLENGER 604'S, BUSINESS JETS, WORTH $100 MILLION (MARCH 2002), FOR NEW BUSINESS CHARTERS.
APRIL 2001: QINGDAO - MACAU (CRJ200), CODE SHARE WITH AIR MACAU (MCU).
1 CL-600-2B19 (7498, B-3007) DELIVERY.
JUNE 2001: JOINS CHINA, "SKY AVIATION" ENTERPRISE, GROUP ALLIANCE (CSAEGA): INCLUDING SHANGHAI AIRLINES (SHA); SICHUAN AIRLINES (SIC), SHENZHEN AIRLINES (SHZ), WUHAN AIRLINES (WUH), AND CHINA POSTAL AIRLINES. IN 2000, THESE 6 CARRIED 8.1 MILLION PASSENGERS (PAX) (35% OF DOMESTIC MARKET). 6 WILL CODE SHARE, JOINT MANAGE AIRPLANES, EQUIPMENT, ENGINEERING & MAINTENANCE, +CARGO WITH TOTAL 103 AIRPLANES & 533 ROUTES.
JULY 2001: 2 ORDERS (9/01) 737-300QC'S, (GEF) LEASED, TO BE BASED IN QINGDAO. 1 CL-600-2B19 (7522, B-3009) DELIVERY.
AUGUST 2001: ZHANG QINGSHE, VICE DIRECTOR, FLIGHT SAFETY REPLACES ZHANG ZHANYONG.
2 ORDERS 737-800'S.
OCTOBER 2001: WORK STARTS ON CONSTRUCTION, OF NEW JINAN INTERNATIONAL AIRPORT, TO TAKE TWO AND ONE HALF YEARS.
737-31L (2567-27276, /94 19 12 B-2931), XINJIANG AIRLINES (XIJ) 6 MONTH LEASED. 2 737-3YO'S (1242-23499; 1243-23500), EX-AMERICA WEST AIRLINES (AMW), GECAS (GUI) LEASED. 2 BOMBARDIER CRJ200'S DELIVERIES.
DECEMBER 2001: SAAB 340B (351, B-3656) RETURNED TO LESSOR.
JANUARY 2002: 1 737-3YOQC (1242-23499, B-2165), (GEF) LEASED.
MARCH 2002: 2001 = +$8.41 MILLLION (-16%). 820 EMPLOYEES.
1 CRJ200 (7614), (GECAS) (GEF) 7 YEAR LEASED.
APRIL 2002: STARTS SHANDONG AIRLINES CARGO, WITH THE NEW 2 737-3YOQC'S AIRPLANES, EACH HAVING A CAPACITY OF 15 TONS. STARTS FREIGHTER SERVICE, YANTAI TO SEOUL, AND QINGDAO TO SEOUL. INTENDS TO OPEN MORE ROUTES TO KOREA, AND INTRODUCE SERVICE TO JAPAN AND MONGOLIA, IN 2002.
INVESTS $100 MILLION IN AN AIR LOGISTICS CENTER, AT QINGDAO AIRPORT.
July 2002: 2001 = +$8.41 MILLION (+$10.01 MILLION) (NET PROFIT): 66.8% LF LOAD FACTOR; 1.53 MILLION PASSENGERS (PAX) (+15%); 18.2 MILLION (FTK) FREIGHT TRAFFIC (+22.5%); 820 EMPLOYEES.
1 CRJ-100ER (7167, B-3015) delivery.
September 2002: 2 orders (2003-09) CRJ700's and canceled 2 Challenger 604's on order.
October 2002: Saab 340B (336, B-3655), sold to Mandarin Airlines (MDN).
November 2002: China Eastern Airlines (CEA) and Shandong Airlines (SHG), canceled an order for 37 Bombardier Dash 8's.
December 2002: 2 CL-600-2B19's (7690, B-3076; 7704, B-3078) deliveries. 737-300 (PQ391) in for "D" check.
March 2003: Code share with China Southern Airlines (GUN) on 15 domestic routes, from Beijing, Guangzhou, Jinan, Qingdao, and Shanghai.
Has (CAAC) approval for the short-term lease of 4 737-300's and is seeking authorization to order 5 737-700's. It has also gained approval to begin international service with Hong Kong, Japan, Macau, and South Korea, the most likely initial destinations.
July 2003: 2 737-36Q's (28664; 23011), Boullioun (BOU) medium-term leased.
August 2003: 2 737-3YOQC's (23499; 23500) returned to (GECAS) (GEF).
September 2003: 2002 = 2.41 Billion (RPK) (+41.6%); 2.2 Million PAX (+42.2%).
2002 TOP WORLD AIRLINES TRAFFIC (RPK) (Billion):
155 (ACN) JAZZ) 2.53; 156 (SNS) 2.48; 157 (USA) EXPRESS) 2.47; 158 (JAA) 2.45; 159 (HORIZON AIR) 2.44; 160 (SHG) 2.41; 161 (ROS) 2.38; 162 (RFG) 2.37; 163 (CHAUTAUQUA AIRLINES) 2.33; 164 (KLM) CITYHOPPER) 2.28; 165 (MCU) 2.26.
Shandong Airlines (SHG) is negotiating to sell a 22.8% stake to a "strategic partner," reportedly Air China (BEJ).
November 2003: $2.4 Billion, 30 orders 737 (CFM56) to be distributed to: Air China (BEJ) (5 737-700's), Xiamen Airlines (XIA) (5 737-700's), Hainan Airlines (HNA) (8 737-800's), Shandong Airlines (SHG) (7: 3 737-700's & 4 737-800's), and Shenzhen Airlines (SHZ) (5 737-900's). 2 CRJ700's (CL-600-2C10) (10118, B-3079; 10120, B-3080) deliveries, 70 PAX. 4 Saab 340B's (289; 292; 296; 302), sold.
March 2004: Air China (BEJ) bought 20% stake in Shandong Airlines (SHG) and also a 26% stake in its parent company Shandong Aviation Group who own 64% of (SHG).
May 2004: 3/8 orders 737-700's, 4 orders 737-800, all with winglets, and 4 Dash 8's.
Jinan - Shenzhen - Singapore (2/week).
2 737-36Q's (29140 B-4098; 29189, B-5099), ex-Air New Zealand (ANZ), Boullioun (BOU) leased.
September 2004: Received government approval to transfer stock to China National Aviation Group, parent company of Air China (BEJ) and largest stakeholder in Air Macau (MCU) & Dragonair (DRG) giving the group a 22.8% share; Shandong Aviation Group (SHG) now holds 42%.
November 2004: Selects Rockwell Collins' Flight Dynamics Head-up Guidance System for installation on its new 737-700's and Dash 800's in mid 2005.
January 2005: 2 737-36Q's (28664; 28761), Boullioun (BOU) leased, wet-leased to Air China (BEJ) for Taiwan flights to Kaoshiung.
March 2005: Revenue was up +13% in 2004 to +CNY1.18B, but profit slumped -82% to +CNY4.2 Million.
737-33V (29333, B-2678), ex-EasyJet (EZY).
April 2005: 737-36Q (28760, B-2878), ex-Frontier Airlines (FRO), Boullioun (BOU) leased.
June 2005: 737-85N (33664, B-5118), delivery.
July 2005: 737-75N (33666, B-5206), & 737-85N (33660, B-5111), deliveries.
August 2005: Shandong Airlines (SHG)'s application to operate flights to Hong Kong and Macau was approved by (CAAC). (SHG) operates a fleet of 737-300s and CRJ200s/700s and has 737-700/-800s on order. It serves 43 domestic destinations and Singapore.
2 737-85N's (33661, B-5117; 33665, B-5119), deliveries.
September 2005: 737-36Q (29405, B-2111), ACG leased, delivery.
October 2005: 737-75N (33654, B-5205), delivery.
November 2005: China signed a deal for 70 737-700/800s for delivery between 2006 and 2008. The airplanes are destined for: Air China (BEJ), China Southern Airlines (GUN), China Eastern Airlines (CEA), Shanghai Airlines (SHA), Xiamen Airlines (XIA), Shandong Airlines (SHG), Hainan Airlines (HNA) & Shenzhen Airlines (SHZ).
December 2005: Airbus (EDS)'s negotiations with Chinese authorities resulted in a blockbuster contract as the airframer reached a "general terms agreement" with Chinese Aviation Supplies Import and Export Group for the purchase of 150 A320 family airplanes.
The order comprises A319s, A320s and A321s – the largest single order Airbus has ever received since it entered the Chinese market 20 years ago.
The deal is worth nearly $10 billion and was signed in the presence of Prime Minister Dominique de Villepin and Premier Wen Jiabao during the latter's visit to France.
"Since it was first introduced into the Chinese market in 1995, the A320 family airplanes have been put in service by 10 Chinese operators with a total of 216 airplanes, accounting for two-thirds of all in-service Airbus airplanes, or nearly one-quarter of the total airplanes in operation in China,” said (CSC) President Li Hai. “The demand for this modern and cost-saving airplane family from Chinese airlines has been rapidly increasing in recent years."
The 150 airplanes will be delivered to 6 Chinese airlines, including Air China (BEJ), China Eastern Airlines (CEA), China Southern Airlines (GUN), Sichuan Airlines (SIC), Shenzhen Airlines (SHZ), and Hainan Airlines (HNA).
The agreement followed by one day the signing of a Memo of Understanding (MOU) between Airbus and the National Development & Reform Commission of China covering Chinese participation in Airbus programs including the possibility of establishing a final assembly line "for single-aisle airplanes in China."
Five Chinese companies currently produce parts for Airbus, which has committed to increase procurement volume to $60 million by 2007 and $120 million by 2010. It employs 54 Chinese engineers, soon to be 200, at its Beijing engineering center, which will be part of China's promised participation in the A350 program. Airbus and China Aviation Industry Corporation signed a $500 million extension last month to a contract for A320 family wing boxes.
737-75N (33663, B-5207), delivery.
February 2006: Based at Jil Nan in Shan Song Province. It serves >40 domestic destinations and also operates to Singapore.
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.
Plans to double its fleet to 60 by 2010. Shandong Airlines (SHG) advised the Shandong Stock Exchange that it will acquire 8 737-800s to be delivered in 2007 and 2008. 6 will be purchased from Boeing and 2 will be leased.
March 2006: Shandong Airlines (SHG) will add several new flights departing from Qingdao in March. From March 16, flight from Qingdao to Hong Kong will be adjusted to a daily flight and the departure time will be changed to 15:30. From March 15, Shandong Airlines (SHG) will newly open a flight from Qingdao to Guilin executed on Sundays, Mondays, Wednesdays and Fridays with a 737-700, and from 26 March, it will be adjusted to a daily flight. From March 26, Shandong Airlines (SHG) will newly open a daily flight from Qingdao to Heihe via Ha Erbin executed by a CRJ-700. From March 26, Shandong Airlines (SHG) will newly open a flight from Qingdao to Jiamusi via Dalian executed on Mondays and Fridays by CRJ-200 and from Qingdao to Yinchuan via Zhengzhou executed on Sundays, Mondays, Wednesdays and Fridays also by CRJ-200. Meanwhile, the density of flights from Qingdao to Beijing, Shanghai, Chongqing, Hefei, Changsha, Guiyang, Huhehaote, Tianjin, Shenyang, Haerbin, Taiyuan and Lanzhou will be also increased.
April 2006: Shandong Airlines (SHG) launched a summer schedule on March 26, that includes new international services from Qingdao to Pusan (3x-weekly) and Taegu (2x-weekly) aboard 737-700s.
Qingdao to Yinchuan.
Boeing is expected to sign contracts shortly with Chinese airlines for 80 737s. The deal is the second part of an order announced late last year for 70 737s. Hainan Airlines (HNA) will take 15, China Southern Airlines (GUN) 10, Xiaman Airlines (XIA) 5, and Shandong Airlines (SHG) 6, with the balance taken by Air China (BEJ), China Eastern Airlines (CEA), Shanghai Airlines (SHA), and Shenzhen Airlines (SHZ). Airbus secured a similar commitment for 150 A320s last year but apparently signed a contract with (CAAC) (CAC), listing the orders as part of the year's record-breaking sales.
May 2006: Changchun to Xi'an via Yantai.
June 2006: Resumes Jinan to Ha'erbin via Weihai.
July 2006: Shandong Airlines (SHG) is a provincial carrier operating domestic trunk routes and secondary schedules.
Employees = 1,400.
(IATA) Code: SC - 324. (ICAO): CDG (Callsign - SHANDONG).
Parent organization/shareholders: Air China (BEJ) (22.8%).
Owns: Sichuan Airlines (SIC) (10%).
Main Base: Jinan Yaoqiang Airport (TNA).
Domestic, Scheduled Destinations: Beijing; Changchun; Changsha; Chengdu; Chongqing; Dalian; Fuzhou; Guangzhou; Guilin; Guiyang; Haikou; Hangzhou; Harbin; Hefei; Heihi; Hohhot; Jiamusi; Jinan; Kunming; Lanzhou; Linyi; Manzhouli; Mudangjiang; Nanking; Nanning; Ningbo; Qingdao; Shanghai; Shenyang; Shenzhen; Simao; Taiyuan; Tianjin; Urumqi; Weihai; Wenzhou; Wuhan; Xi'An; Xiamen; Yantai; & Yinchuan.
International, scheduled destination: Hong Kong; Seoul; & Singapore.
Shandong Airlines (SHG) has more than >110 air routes and 1,000 flights every week.
Singapore Aircraft Leasing Enterprise (SALE) (SIL) will lease 2 new 737-800s to Shandong Airlines (SHG) for 10 years each. The airplanes will be delivered from Boeing in the 1st half of 2007. It is Shandong (SHG)'s first contract with (SALE) (SIL), which has 30 737-800s on firm order.
Yantai to Lanzhou via Xi'an.
737-8AL (35073, B-5321), delivery.
April 2007: Shandong Airlines (SHG) posted net income of +CNY44 million/+$5.7 million in 2006, a reversal from the prior year's loss of -CNY273.6 million, on a +45.2% lift in operating revenue to CNY 4.2 billion. The company attributed the result in part to "readjustment of airplane makeup," referring to its successful sale of two business jets and optimization of its fleet of CRJ-200s and CRJ-700s. Shandong (SHG) had incurred losses operating the CRJs independently and has been working to fly them in partnership with Air China (BEJ) or lease them to other carriers. "Fine-tuning of domestic network and cost savings" also were listed as keys. Operating expenses increased +38% to CNY3.4 billion. "The significantly higher cost of jet fuel is again a major cost factor," the airline said, noting a +40.6% rise in fuel spending. Passenger boardings jumped +33.9% to 5.4 million.
This year Shandong Airlines (SHG) expects to continue its policy of "cost discipline," which it said is an important step when facing high fuel prices. It has three remaining CRJs it hopes to lease out or sell. It also highlighted the "deepening cooperation with Air China (BEJ) [its biggest shareholder] on code sharing and connecting flights, an increase of direct sale volume and acceleration of e-ticketing penetration" as priorities in 2007.
Aviation Partners Boeing (APB) announced the sale of 12 Blended Winglet shipsets to Shandong Airlines (SHG) for its 737-800s.
June 2007: Competition for passengers in western China intensified dramatically as China Southern Airlines (GUN) launched its new Chongqing Airlines, while the (HNA) Group subsidiary Lucky Air (LKY) began operating its Chongqing-based "West China Airlines."
Chongqing Airlines 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 3 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 2nd-tier cities and tourist destinations.
Lucky Air (LKY) will forge a different path with its new carrier, which Lucky (LKY) (CEO), and West China 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.
Shandong Airlines (SHG) recently took delivery of a 179-seat, 737-800 for use on its newly opened routes from Jinan to Beijing and Mudanjiang. Shandong (SHG) President, Feng Gang noted that the company plans to take delivery of eight airplanes this year, and increase capacity by +30%. Its third 737-800 will arrive at the end of this month, he added. It currently operates 40 airplanes.
737-8AL (35075, B-5331), (SALE) (SIL) leased and 737-8FH (35095, B-5332), (RBS) Aerospace leased.
July 2007: Rockwell Collins said Shandong Airlines (SHG) selected a suite of avionics for 18 737-800s including the MultiScan Hazard Detection System, Model 4000 HGS and Programmable Audio Video Entertainment System. Deliveries are scheduled through 2009.
737-8FH (35096, B-5333), (RBS) Aerospace leased.
August 2007: 2 737-8FHs (35097, B-5335; 35098, B-5336), (RBS) Aerospace leased.
November 2007: 737-85N (36190, B-5347), delivery.
December 2007: Domestic China market share is shown on ATTACHED - "SHG-DOM-MKT-SHARE-DEC07."
2 orders 737-800s, (BOC) Aviation (SIL) leased.
737-85N (36191, B-5348), delivery.
March 2008: Beijing Capital International Airport's new $3 billion-plus Terminal 3 opened as Shandong Airlines (SHG) (flight SC1151 arrived from Jinan at 8:39 am. UK architect, Norman Foster claimed it is the largest covered structure ever built - - 3.25 km long and 1.3 million sq m of floor space. Construction began in March 2004. The airport said the three-concourse facility welcomed Shandong (SHG), Sichuan Airlines (SIC), Qantas (QAN), Qatar Airways (QTA), British Airways (BAB), and El Al (ELA). A second move is scheduled for March 26 when Air China (BEJ), Shanghai Airlines (SHA), (SAS), Austrian Airlines (AUL), Lufthansa (DLH), Asiana Airlines (AAR), Air Canada (ACN), United Airlines (UAL), (ANA), Thai Airways (TII), Singapore Airlines (SIA), Finnair (FIN), Cathay Pacific Airways (CAT), Japan Airlines (JAL), Dragonair (DRG), Turkish Airlines (THY), Emirates (EAD), Air Macau (MCU), S7 Airlines (SBR), and EgyptAir (EGP) will transfer to the new building. "Reuters" reported that airport capacity will be boosted to 76 million per year from the 52 million it served in 2007. The baggage system can handle 19,800 pieces per hour, it said.
Shandong Airlines (SHG), based in Jinan, will take delivery of six 737NGs in 2009 and 16 in 2012 to 2013, according to a statement to the Shenzhen Stock Exchange cited by press reports. According to its website, Shandong operates 37 airplanes on more than >700 weekly flights to 50 destinations.
April 2008: Shandong Airlines (SHG) enjoyed a turnaround by posting net income of +CNY51.7 million, a reversal from a net loss of -CNY58.8 million in the first three months of 2007. Operating revenue climbed +31.8% to CNY1.23 billion.
September 2008: Shandong Airlines (SHG) posted a net profit of +CNY58.6 million/+$8.6 million in the first six months of 2008, a reversal from a -CNY90 million deficit in the year-ago semester. Operating revenue rose +22.6% year-over-year to CNY2.25 billion against a +13.8% increase in expenses to CNY1.99 billion. The Jinan-based carrier credited "effective cost-savings" and "rationalization of the fleet structure" as the main contributors to the improved result. Passenger boardings jumped +27.2% to 3.1 million, while cargo traffic climbed +38% to 37,800 tonnes. In the current half, the company expects to face increasing pressure from "macro-economic" and "capital" risks. It cited improving safety, the "economic slowdown" and "surging operating costs," related to rising oil prices and inflation, as the three principal challenges going forward.
November 2008: Nine mainland Chinese carriers were selected to operate weekday flights across the Taiwan Strait and are expected to launch service on December 15, according to the (CAAC) (CAC). In addition to Air China (BEJ), China Eastern Airlines (CEA), China Southern Airlines (GUN), Hainan Airlines (HNA), Xiamen Airlines (XIA), and Shanghai Airlines (SHA), which all already operate weekend cross-strait flights, Sichuan Airlines (SIC), Shandong Airlines (SHG) and Shenzhen Airlines (SHZ) were tapped to operate the weekday flights.
Mainland carriers are permitted to operate 54x-weekday flights per week. According to the (CAAC) (CAC), (BEJ) will operate 10x- while 12x- have been allotted to (CEA), 10x- to (GUN), 5x- to (HNA), 6x- to Xiamen (XIA), and 5x- to (SHA). Sichuan (SIC), Shandong (SHG), and Shenzhen (SHZ) each have been granted permission to operate 2x-weekly weekday flights.
Regarding cross-strait cargo flights, (CEA) subsidiary, China Cargo Airlines (CKK), China Southern Airlines (GUN), and Air China Cargo (CAO) have been selected. China Cargo Airlines (CKK) and (GUN) each are expected to operate 10 monthly flights from Shanghai and Guangzhou respectively, while Air China Cargo (CAO) is expected to operate 5 monthly flights from both Shanghai and Guangzhou.
March 2009: 737-85N (36195, B-5352), delivery.
April 2009: 737-85N (36773, B-5450), delivery.
June 2009: 737-85N (36774, B-5455), delivery to Air China (BEJ) for Shandong Airlines (SHG) operations.
July 2009: China Eastern Airlines (CEA) will benefit the most from the agreement reached in April to expand significantly the number of flights permitted across the Taiwan Strait, according to a cross-strait distribution plan released by the (CAAC) (CAC). The Taipei-based Strait Exchange Foundation and the Beijing-based Association for Relations Across the Taiwan Strait, signed the accord that increases from 108 to 270 the number of direct flights allowed beginning this month. Under the (CAC)'s plan, (CEA) is designated to operate 58x-weekly flights to Taipei from Shanghai, Nanjing, Wuhan, Qingdao, Kunming, Xi'an, Hefei, Ningbo, and Nanchang. (CEA) Board Secretary, Luo Zhuping noted that the carrier's cross-strait routes are among its most profitable and have operated at 80% to 90% (ASK) capacity on average.
Air China (BEJ) was assigned 54x-weekly flights to Taipei from Beijing, Shanghai, Chengdu, Chongqing, Hangzhou, Tianjin, and Guiyang. China Southern Airlines (GUN) also was allocated 54x-weekly flights to Taipei to be operated from Shanghai, Guangzhou, Xiamen, Dalian, Guilin, Shenzhen, Wuhan, Changsha, Haikou, Shenyang, Zhengzhou, Harbin, and Guiyang.
Hainan Airlines (HNA) and Shanghai Airlines (SHA) each were allocated 20x-weekly flights, while Xiamen Airlines (XIA) was given 22x-. Sichuan Airlines (SIC), Shandong Airlines (SHG) and Shenzhen Airlines (SHZ) were granted 14x-weekly flights each.
On the cargo front, Air China Cargo (CAO) was assigned 10x-weekly flights to Taipei from Shanghai and Guangzhou, while (CEA) subsidiary China Cargo Airlines (CKK) was assigned 8x-weekly flights from Shanghai to Taipei and China Southern (GUN) was assigned 10x-weekly flights from Guangzhou to Taipei.
737-85N (36775, B-5457), delivery and transferred to Air China (BEJ).
August 2009: Shandong Airlines (SHG) earned a +CNY112.5 million/+$16.4 million net profit in the 1st 6 months of 2009, up +91.9% from the +CNY58.6 million reported in the year-ago semester thanks to a recovery in domestic demand and government subsidies. Half-year operating revenue fell -3.6% to CNY2.34 billion against a -6.9% decrease in expenses to CNY18.56 billion. Passenger boardings climbed +13.5% to 3.5 million but cargo traffic fell -3% to 37,000 tons. (SHG)'s fleet comprises 12 737-300s, three 737-700s, 15 737-800s, eight CRJ-200s and two CRJ-700s. It expects to post net income of +CNY240 to +CNY260 million through the nine-month period.
September 2009: Direct service between Jinan and Taipei starts September 2nd.
737-85N (B-5451 - - SEE PHOTO - - "SHG-737-85N-2009-09") delivery has "Friendly Shandong" titles as well as promoting Jinan, "City of Springs." (SHG) has four more 737-800s on order.
April 2010: 737-8FZ (31717, B-5526), Babcock (BBB) leased.
May 2010: 737-85N (36778, B-5453) delivery and 737-8FZ (29659, B-5531) Babcock (BBB) leased.
June 2010: 737-86N (36546, B-5513), (GEF) leased, ex-(N1796B).
July 2010: Shandong Airlines (SHG) is a provincial carrier operating domestic trunk routes and secondary schedules from Jinan, Qingdao, and Yantai to major cities in China including Beijing, Guangzhou, Shanghai, and Shenzhen.
Employees = 3,587.
(IATA) Code: SC - 324. (ICAO): CDG (Callsign - SHANDONG).
Parent organization/shareholders: Publicly traded (77.2%); & Air China (BEJ) (22.8%).
Airline subsidiaries/shareholdings: Sichuan Airlines (SIC) (10%).
Alliances: Air China (BEJ).
Main Base: Jinan Yaoqiang Airport (TNA).
Domestic, Scheduled Destinations: Beijing; Changchun; Changsha; Chengdu; Chongqing; Dalian; Fuzhou; Guangzhou; Guilin; Guiyang; Haikou; Hangzhou; Harbin; Hefei; Heihi; Hohhot; Jiamusi; Jinan; Kunming; Lanzhou; Linyi; Manzhouli; Mudangjiang; Nanking; Nanning; Ningbo; Qingdao; Shanghai; Shenyang; Shenzhen; Simao; Taiyuan; Tianjin; Urumqi; Weihai; Wenzhou; Wuhan; Xi'An; Xiamen; Yantai; & Yinchuan.
International, scheduled destination: Hong Kong; Seoul; & Singapore.
August 2010: 737-8AL (37954, B-5537), (BOC) Aviation (SIL) leased, and 737-8FH (40882, B-5541), RBS Aerospace leased.
September 2010: 737-8FH (40883, B-5542), delivery.
November 2010: Air China (BEJ), including its Shenzhen Airlines (SHZ) subsidiary, is now code sharing on cross-Strait flights with Taiwan’s (EVA) Air, including its regional member Uni Air (MAK). The cities involved are Beijing, Chongqing, Hangzhou, Shanghai, Shenzhen, and Tianjin, all from Taipei (mostly Taoyuan airport but also the more conveniently located Songshan airport for flights to Shanghai’s own close-in Hongqiao airport). Soon Air China (BEJ)’s Shandong Airlines (SHG) unit will also join in, adding Taipei - Qingdao flights to the list. Though Air China (BEJ) and (EVA) signed an interline pact for Taiwan-mainland passengers traveling through Hong Kong or Macao as early as 1995, the new arrangement enables (EVA) to promote Taiwan as a connecting hub into and out of the mainland for North American passengers.
December 2010: 2 737-86Ns (38013, B-5560; 38016, B-5561), (GEF) leased.
April 2011: 737-85P (35493, B-5490), AerDragon Aviation Leasing leased.
May 2011: Shandong Airlines (SHG) reported a first-quarter net profit of +CNY169.5 million/+$26 million, up +79.5% over net income of +CNY94.39 million in the year-ago period. (SHG) credited “the robust growth of domestic market demand stimulated by a fast-growing Chinese economy” for the improved result.
First-quarter revenue climbed +35.6% year-over-year to CNY2.03 billion, while expenses jumped +32% to CNY1.53 billion, which was mainly attributable to higher fuel prices.
(SHG) noted that “subsidies distributed by some domestic airports” also boosted (SHG)’s financial performance. It received CNY9.8 million in such subsidies during the quarter.
As of March 31, (SHG) operated a fleet of 49 airplanes. It has plans to expand it to 100 airplanes by 2015.
October 2011: Shandong Airlines (SHG) posted a +$28 mikkion net profit for the second quarter, along with an impressive
11% operating margin, even higher than the 10% earned by parent, Air China (BEJ)itself. For the full 1st half of the year, operating margin stands at nearly 12%.
(SHG) operates roughly 50 737s, most of them 737-800s, as well as a
handful of CRJ-200s. Most of its routes are domestic, but it does serve a few nearby destinations abroad as well, including Osaka and
Seoul. It also connects 3 cities (Jinan, Qingdao and Yantai) to Taipei.
February 2012: 737-85N (39125, B-5628), delivery.
April 2012: Shandong Airlines (SHG) plans to finalize an order for 5 additional 737-800s (it already operates 40) and to lease 4 additional 737-800s according to an expansion plan recently approved by its board of directors.
January 2012: 737-8HX (38103, B-5626), (GCP) leased. and 737-85N (38637, B-5627), deliveries.
June 2012: The (ANA) Group signed a code share agreement with Shandong Airlines (SHG) under which (ANA) will place its code on (SHG) service between Osaka Kansai and Jinan. (SHG) will place its code on (ANA) service between Tokyo Narita and Qingdao, and from Kansai to Qingdao, Tokyo Haneda and Fukuoka.
Air China (BEJ) subsidiary, Shandong Airlines (SHG) plans to purchase 2 leased Bombardier (BMB) CRJ700s that have been part of its fleet for 8 years.
(SHG) stated the leases on the two airplanes with the China Development Bank Leasing Company will expire this month, enabling (SHG) to purchase the airplanes for no more than CNY246.44 million/$38.9 million.
(SHG) operates a fleet of 59 airplanes on over >110 routes, including 60 domestic destinations, with more than >2,000 weekly departures. Due to fast-growing domestic demand, (SHG) plans to expand its fleet to 100 airplanes by the end of 2015. It is scheduled to take delivery of nine 737-800s through a combination of purchases and leases.
(SHG), which was launched in March 1994, has achieved 6 consecutive years of profit since 2006. It reported 1st-quarter net income of +CNY62.9 million, down nearly -63% compared to the +CNY169.5 million earned in the year-ago period.
July 2012: 737-85N (38641, B-5650), delivery.
September 2012: Shandong Airlines (SHG), which mainly operates domestic routes within China, launched its 2nd Japanese route on September 3. (SHG) now connects Qingdao (TAO) on eastern China’s coast with Tokyo Narita (NRT) with 3x-weekly frequencies. All flights on the 1,800 km route are operated using (SHG)’s fleet of 737-800s. (ANA) and China Eastern (CEA) already serve the route with 7x- and 4x-weekly frequencies, respectively. Shandong Airlines (SHG)’s only other route to Japan is the 2x-weekly service from Jinan to Osaka Kansai, which was launched in early March.
China’s Qingdao municipal government is in negotiations with Air China (BEJ) and its subsidiary Shandong Airlines (SHG) to launch Qingdao Airlines, according to Qingdao Municipal Transport Committee Deputy Director, Zhao Haibin.
Qingdao Airlines (based at Qingdao Liuting International airport (TAO)) is the proposed name of a new joint venture, the local municipality administration of Qingdao plans to set-up in cooperation with a major Chinese airline. It is currently in talks with both Air China (BEJ) and Shandong Airlines (SHG) about its plans. While (BEJ) just serves Beijing, Chengdu Shuangliu International (CTU), Seoul Incheon International (ICN) and Shanghai Hongqiao International (SHA) from Qingtao, Shandong (SHG) (in which Air China (BEJ) owns a large minority stake) however, has a major base in Qingtao, from where it serves 40 domestic destinations as well as Seoul Incheon, Taipei Taoyuan International (TPE) and Tokyo Narita New Tokyo International (NRT).
According to industry analysts, the Qingdao government is seeking to partner with an established Chinese carrier as new Civil Aviation Administration of China (CAC) standards for new entrants make it difficult to launch new carriers.
All major Chinese carriers have been forging closer cooperative relationships with local governments. Industry analysts say that subsidiaries enable China’s domestic carriers to receive cash support and enjoy favorable policies from different local governments.
China Southern Airlines (GUN) last month launched Chongqing Airlines and entered into a joint venture agreement with government-owned Henan Civil Aviation Investment to launch a subsidiary, China Southern Henan Airlines Company.
January 2013: 737-85N (39329, B-5723), Babcock & Brown (BBB) leased.
April 2013: Shandong Airlines (SHG), owned by Air China (BEJ), used the start of the summer season to introduce 8 new domestic routes from four Chinese airports. The main airport beneficiary is Xiamen (XMN), which witnessed services inaugurated to Guilin (KWL), Dalian (DLC), Shenyang (SHE) and Xi’an (XIY). Flights to the former, the city located in the northeast of the Guangxi Zhuang Autonomous Region, represents the route where Shandong Airlines (SHG) will encounter the stiffest competition, with 18 competing frequencies from 3 airlines. However, 50% of its new services will see it become the sole operator on the respective routes.
The use of head-up displays (HUDs) in Chinese commercial airplanes has made a key advance in China with the decision by one of the country’s three biggest airlines, China Eastern (CEA), to introduce the technology into its narrow body airplanes.
With the Civil Aviation Administration of China (CAAC) (CAC) targeting near-universal use of (HUD)s by 2025, (CEA) has ordered Rockwell Collins (HUD)s for 58 737s, with deliveries due from mid-2013 to 2015.
Okay Airways (OKA), a much smaller carrier, has ordered the same equipment for 10 737s, with similar delivery dates to (CEA)’s.
(HUD)s are becoming steadily more common in commercial aviation globally because they increase safety and landing opportunities in bad weather by keeping pilots (FC)’s attention outside of the airplane, and they also can help guide the landing. But the (CAAC)’s policy is making manufacturers optimistic that the Chinese market will mature early.
Thales (THL) and Rockwell Collins are well positioned as the suppliers for the A320 family and the 737, respectively.
The Chinese market alone is considerable. Rockwell Collins, for example, said its (HUD), the Head-up Guidance System (HGS) has a catalog price of about $350,000 per set. On that basis, the 2 contracts announced on April 2 are worth about $24 million, before discounts.
Shandong Airlines (SHG) appears to have been the 1st Chinese carrier to begin using (HUD)s. It ordered the (HGS) for 737s around the middle of last decade, said Rockwell Collins Commercial Systems in China.
China Southern (GUN) ordered its 5 A380s with Thales (THL) (HUD)s. Xiamen Airlines (XIA) uses Rockwell Collins (HUD)s on its 737s.
May 2013: Shandong Airlines (SHG) has announced plans to sell its five of its 6 remaining 737-300s to China Postal Airlines (CPZ) for likely conversion into freighters. Operational since 1997, China Postal Airlines (CPZ) was founded by the Chinese Postal Bureau (51%) and China Southern Airlines (GUN) (49%). It was originally set up to operate domestic postal services, but in 2006 introduced international scheduled services to South Korea and Japan. Its fleet currently includes 8 737-300Fs, 2 737-300QCs and 8 737-400Fs.
June 2013: 737-85N (39332, B-5781), Babcock & Brown (BBB) leased. 737-85N (39111, B-5782), delivery. 737-89L (40043, B-5755), transferred from Air China (BEJ) on delivery.
July 2013: 737-85N (39112, B-5783) and 737-89L (40039, B-5757).
August 2013: 2 737-85Ns (39113, B-5785) in special "Dong E E Jiao" colors - - SEE ATTACHED - - "SHG-737-85N - 2013-08," (39127, B-5786) in special turquoise/purple/crimson colors with "The Tenth China Arts Festival" titles on lower forward fuselage, and 737-89L (40044, B-5758), deliveries.
September 2013: Shandong Airlines (SHG), nicknamed (SDA), is a Chinese airline with its headquarters based in the Shandong Airlines Centre in Jinan, Shandong, China. (SHG) was founded in 1994 and is now a daughter company of Air China (BEJ). It operates mainly domestic trunk routes from Jinan, Qingdao and Yantai to major cities in China. The domestic market accounts for 98.9% of (SHG)’s weekly seats, with overall capacity up +14.2% in the last 12 months. The carrier serves three countries (Taiwan, South Korea, and Thailand) beyond its domestic services within mainland China.
The top 12 routes in Shandong Airlines (SHG)’s network are relatively stable, with only four of last year’s services not included in the 2013 top dozen (Hangzhou - Xiamen; Shanghai Hongqiao - Jinan; Jinan - Xi’an; and Shanghai Hongqiao – Yantai). The four routes which have entered the top 12 this year are highlighted in the attached chart - - "SHG-2013-09 TOP 12 ROUTES." Shanghai Hongqiao to Qingdao remains the top route served by (SHG), growing by +20.6% in terms of weekly seats versus the same week last year.
(SHG) has two main operating bases at Qingdao and Jinan. The latter is claimed to be (SHG)’s primary hub, but interestingly the capital of Shandong province in eastern China is second in terms of capacity to Qingdao (15.2%), with a weekly seat share of 12.4%. Xiamen, on China’s south-east coast is in third, with a 6.6% capacity share.
The current network of services from Shandong boasts 59 destinations on the route map, up from 56 a year ago. Added in the last 12 months have been seven new points; Baotou, Chiang Mai (in Thailand), Haikou, Hailar, Hualien, Jiujiang, and Linyi. Four airports have been dropped from its network; Osaka Kansai, Ganzhou, Luoyang, and Tokyo Narita.
October 2013: Shandong Airlines (SHG) has reported a 3rd-quarter net income of +CNY402.89 million/+$65.8 million, down -20.75% compared to +CNY508.38 million in the year-ago period.
Shandong Airlines (SHG) has launched 10 new domestic routes across China, involving a total of 13 airports. 7 of the routes have been launched as daily services operated by (SHG)’s fleet of over >50 737-800s. Only 3 of the new services link airports that are not currently connected by other carriers. Chongqing (CKQ) is the only airport to gain more than two new services from the airline. Chongqing (CKG) to Guilin (KWL), 7x-weekly vs Xiamen Airlines (XIA) 14x-weekly, Hainan Airlines 7x-weekly, & China Southern (GUN) 6x-weekly; to Shijiazhuang (SJW) 7x-weekly vs Hebai Airlines (NTE) 7x-weekly, & Spring Airlines (CQH); to Wenzhou (WNZ) 7x weekly vs Chongqing Airlines (CGQ) 14x-weekly; Air China (BEJ) 10x-weekly, China Eastern Airlines (CEA) 7x-weekly, & (HNA) 7x-weekly; Guilin (KWL) to Fuzhou (FOC) 7x-weekly vs (XIA) 7x-weekly; Haikou (HAK) to Zhengzhou (CGO) 4x-weekly vs (GUN) 21x-weekly, (HNA) 14x-weekly, Beijing Capital Airlines (DER) 7x-weekly Shenzhen Airlines 7x-weekly and Tianjin Airlines (GCR) 3x-weekly; Shijiazhuang (SJW) to Yantai (YNT) 7x-weekly; Taiyuan (TYN) to Baotao 7x-weekly; Wenzhou (WNZ) to Nanjing (NKG) 5x-weekly; Zhuhai (ZUH) to Guiyang (KWE) 7x-weekly vs (GUN) 7x-weekly; and (ZUH) to Wuhan (WUH) vs (GUN) 10x-weekly.
November 2013: Shandong Airlines (SHG), the Air China (BEJ) owned prevailingly domestic Chinese operator, launched operations on the 380 km route from Haikou (HAK) in Hainan province to Zhuhai (ZUH) in the Pearl River Delta. Beginning on October 29, (SHG) offers thrice-weekly schedule on the route with flights departing on Tuesdays, Thursdays and Saturdays. 737-800s are deployed to operate the newly launched service. Competition in the market from Haikou to Zhuhai comes from China Southern Airlines (GUN) (10 weekly frequencies) and Sichuan Airlines (SIC) (daily).
December 2013: 737-89L (40040, B-5856) delivered with special "International Horticultural Exposition 2014 Qingdao" titles.
January 2014: Recently, Shandong Airlines (SHG) has signed a lease-back agreement with an airplane leasing company for a Boeing 737-300 (B-2877), marking that the 737-300 has been completely retired from (SHG)'s fleet. The 737-300 is (SHG)'s last leased airplane and the 4th airplane retired from (SHG)'s fleet in 2013.
The 737-300 airplane had served (SHG) for 16 years. With multi-side cooperation among the airline, airplane leasing company and maintenance, the 737-300 airplane was delivered on December 23, 2013.
It is learnt that during the process of airplane lease-back and delivery, the airline made efforts to guarantee the project. Seeking connections with buyers through various channels, on the one hand, it laid aside the controversial program temporarily and completed the rectify and reform work as soon as possible; on the other hand, (SHG) negotiated with the other party. Finally, with cooperation of all parties, the project was fully completed.
February 2014: Shandong Airlines (SHG), Air China (BEJ)’s subsidiary, expanded its seasonal offering with the addition of twice-weekly flights (Mondays and Wednesdays) from Weihai (WEH) in China to Taipei Taoyuan (TPE). (SHG)’s operations on the 1,321 km route began on February 24th using its 167-seat 737-800s. The seasonal service will operate until March 26th and will face direct competition from China Airlines (CHI)’s weekly flights.
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, 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 learnt that the airline 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 (QDA) 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: Air China (BEJ) subsidiary, Shandong Airlines (SHG) ordered 16 Boeing 737NGs and 34 737 MAXs scheduled for delivery between 2016 and 2020. (SHG) plans to expand its capacity to meet growing demand in China and Northeast Asia, one of the most dynamic markets for commercial airplanes.
(SHG) said that it would continue to implement its big triangle strategy, “Shandong - Xiamen - Chongqing,” which focuses on growth at its main Shandong base and increases capacities in Xiamen and Chongqing. It also plans to open international routes to Japan, Korea and some Southeast Asian countries.
Shandong Airlines (SHG) currently operates a fleet of 74 airplanes, comprising 67 737s (with an average fleet age of four years) and seven Bombardier CRJ airplanes, on more than >130 domestic and international routes to Japan and Korea. (SHG) plans to expand its fleet to 100 airplanes by 2015.
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 27 launch. The start-up's first of the type, (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.
July 2014: Shandong Airlines (SHG) started its second link to Bangkok Suvarnabhumi (BKK) on July 12th, with the launch of seasonal flights from Jinan (TNA). The operation, which is expected to terminate on September 30th, will join (SHG)’s existing Bangkok flights from Qingdao. The 3,008 km sector will be flown 3x-weekly by Shandong (SHG)’s 152-seat 737-800s under no direct competition.
August 2014: Shandong Airlines (SHG) took delivery of another brand new Boeing 737-800 airplane landing smoothly at Jinan Yaoqiang International Airport (TNA) on August 8. 737-800 (B-1985) is the 6th 737-800 delivered to (SHG) this year, boosting its fleet size to 77 airplanes.
It is learnt that this is (SHG)'s 3rd 737-800 airplane equipped with premium economy (PY) class, which will be deployed on Qingdao outbound services, boosting the number of its available premium economy (PY) seats.
In addition, in order to meet the growing travel demands in the summer peak, (SHG) is increasing its capacity continuously by launching new air routes (Qingdao - Tianjin - Bayannur, and Qingdao - Dalian - Mudanjiang, starting from August 1. At the same time, its flights connecting Xiamen, Jinan and Beijing will be opened on August 10, to further improve its route network across the country.
737-85N (41617, B-1985), delivery.
September 2014: Shandong Airlines (SHG) on September 1st added two more routes from Shanghai Hongqiao (SHA). Both the 595 km route to Nanchang (KHN) and the 811 km route to Xiamen (XMN) will be operated daily by (SHG)’s 737-800s. Both markets are already well served. On the Nanchang route, competition will come from China Eastern Airlines (CEA) (22 weekly flights) and Shanghai Airlines (SHA) (eight weekly flights), while on the Xiamen route, the incumbent carriers are Xiamen Airlines (XIA) (63 weekly flights), Shanghai Airlines (SHA) (39), Spring Airlines (CQH) (35), China Eastern Airlines (CEA) (21) and Juneyao Airlines (JYA) (seven). In total, Shandong Airlines (SHZ) now operates 94 weekly departures from Shanghai Hongqiao across six domestic routes.
On September 24, 2014, a brand new Boeing 737-800 airplane of Shandong Airlines (SHG) arrived at Jinan Yaoqiang (TNA) International Airport, which is the eighth 737-800 delivered to the airline this year.
The new 737-800, registration number (B-1988), will be deployed to (SHG)'s Xiamen Branch to operate Xiamen - Zhoushan route.
Since its establishment in 2009, (SHG)'s Xiamen Branch has expanded its airplane fleet continuously and enforced its role in the airline's strategic layout. Currently, the branch company owns 13 airplanes and builds a comprehensive route network linking East and West, North and South China, radiating the nation and covering the neighbor countries.
In 2013, Shandong Airlines (SHG) handled 2.2 million passengers and 18,000 airplane movements in Xiamen, up +25.85% and +27.30%, +25.85% year on year, respectively.
With the introduction of new Boeing airplanes, (SHG) expands its Boeing 737NG fleet to 72 airplanes and operates one of the youngest fleet in China with an average age less than <4 years.
October 2014: Air China (BEJ) subsidiary, Shandong Airlines (SHG) reported a first-half net profit of +CNY46.7 million/+$7.6 million, down -43% from net income of +CNY82.4 million in the year-ago period.
First-half operating revenue rose +0.72% to CNY5.56 billion, while operating expenses grew +5% to CNY4.93 billion year-over-year.
(SHZ) cited first-half exchange losses of -CNY141 million, due to yuan depreciation, as the main reason for the sharp profit decline.
China’s big three carriers (Air China (BEJ), China Eastern (CEA), and China Southern (GUN)) have all reported either sharp profit declines or losses this year due to exchange losses.
Shandong Airlines (SHG)’s first-half passenger boardings climbed +14.7% to 7.44 million with an average load factor of 78.5% LF, up +0.25 point over the year-ago period. Cargo traffic volume jumped +14.4% to 70,000 tonnes.
In the first half, (SHG) took delivery of two Boeing 737-800s and phased out one 737-300. In April, it placed a firm order for 50 737 airplanes, including 737NGs and 737 MAXs, which are scheduled for delivery between 2016 and 2020.
As of June 30, (SHG) operated a total fleet of 73 airplanes, comprising one 737-300, three 737-700s, 62 737-800s, five Bombardier CRJ-200s and two CRJ-700s with an average fleet age of 4.86 years.
Looking forward, industry analysts predict Shandong Airlines (SHG) will see a big improvement in its financial performance in the third quarter due to yuan appreciation, lower fuel prices and the traditional peak season factor.
December 2014: On December 9, Shandong Airlines (SHG) and New United Group Company, Ltd signed a comprehensive agreement to transfer (SHG)'s last 5 Bombardier CRJ-200 airplanes, marking its entry into an era of all Boeing 737NG fleet.
Shandong Airlines (SHG), hailed as "Wings of Shandong," is a B-Share listed company on the Shenzhen Stock Exchange that niches in air transportation services. Over the past 20 years, (SHG) has always valued "Safety, Efficiency, Punctuality and High-quality Service" as its priorities. Up to now, it owns nearly 80 737 series airplanes in total, and it has the vision to grow into a large airline company with 100 airplanes by the end of ots 12th five-year plan.
So far, (SHG) operates over 130 air routes currently and has more than 2,000 flights to over 60 large & medium-sized cities throughout the country. With decades of operation history, the CRJ-200 fleet has contributed greatly to (SHG)'s development on routes expansion, pilot (FC) training and economic returns. After the CRJ-200 retirement, Shandong Airlines (SHG) will operate an all-737NG fleet, which will lower maintenance costs and improve resource deployment efficiency.
January 2015: Boeing (TBC) delivered 2 new 737-85Ns (41620, B-1743; 41621, B-1745) to Shandong Airlines (SHG).
February 2015: Heavy smog delayed >50 flights on Sunday at an airport in E China's Shandong Province, stranding travelers on their way home for the Chinese Lunar New Year holiday.
The provincial capital Jinan was blanked by heavy pollution, with an Air Quality Index (AQI) reading of 285 at 4:00 pm, according to the China National Environment Monitoring Center. "It was a gloomy and humid morning," said Zheng Yue, a resident of Jinan. "By the afternoon, the sky was even darker."
The air quality disrupted a third of Jinan International Airport's takeoffs and landings. The airport said that as of 6:00 pm, at least 55 flights were delayed, including 23 arrivals and 32 departures.
Flights to Shenyang, capital of NE China's Liaoning Province, and to Haikou, in the southern province of Hainan, were delayed by >4 hours.
Jinan Airport is a pivotal hub in east China, which serves both domestic and international flights.
March 2015: Air China (BEJ) subsidiary, Shandong Airlines (SHG) reported a full-year net profit of +287.85 million yuan in 2014, down -26.21% from net income of +389.08 million yuan in the year-ago period. Total operating revenue rose +1.25% to 11.57 billion yuan.
(shg), the Jinan-based carrier, cited the slowdown in economic growth and cheaper airfares resulting from intensifying competition, as main reasons for the sharp profit decline. (SHG)'s earning per share (EPS) was 0.72 yuan, compared with 0.97 yuan in 2013.
In 2014, (SHG) achieved a total transport turnover volume of 1.94 billion tonnes km. Passenger traffic climbed +9.14% to 15.32 million with an average load factor of 77.21% LF, down -0.55% points over the prior year, due to a slowdown in demand and faster growth of transport capacity. Cargo traffic volume rose +8.03% to 141,400 tonnes.
Last year, Shandong Airlines (SHG) introduced 10 Boeing 737-800 airplanes and phased out 2 Boeing 737-300s. As of December 2014, (SHG) has operated a medium fleet of 80 airplanes, including 3 737-700s, 70 737-800s, 5 Bombardier CRJ-200s and 2 CRJ-700s.
This year, (SHG) announced it would take delivery of 15 new 737-800s to improve fleet operating efficiency.
Looking ahead, the company expects overcapacity problems to remain. It will also continue to be challenged by the high-speed rail competition and the fluctuation of international oil prices and exchange rates.
May 2015: News Item A-1: China's Civil Aviation Administration (CAAC) has unlocked a new capability for reducing delays and increasing efficiency at the country's most congested airports that could be ready for live operational use by the end of this year. A recent flight demonstration by Honeywell (SGC) and Hughes Aerospace showed the benefits of the SmartPath Ground Based Augmentation System (GBAS) for next generation, Ground Proximity System (GPS)-based precision landings.
Using a China Eastern Airlines (CEA) Airbus A321 and a Shangdong Airlines (SHG) Boeing 737-800, flight crews (FC) demonstrated the 1st ever Global Navigation Satellite System (GNSS) instrument approaches in China at the end of April. To enable these precision landings, SmartPath's 4 ground-based antennas take an airplane's (GPS) signals and sends them to a single box located on the airport, which then correlates the signals for a high degree of integrity before beaming it back up to the airplane for precision landing guidance.
"The (CAAC), knowing that they needed to have some very flexible alternatives to the legacy Instrument Landing System (ILS), they asked us to do some very innovative approaches with the system," said Brian Davis VP Airlines Asia Pacific at Honeywell Aerospace (SGC). “Honeywell (SGC) and our partner Hughes Aerospace, actually designed and created the flight paths into Pudong airport, not only for the standard approaches but we did 4 very flexible innovative approaches that have never been done by a commercial airline before. The 1st one was what we called a displaced threshold, the 2nd was a variable glide-path."
Hughes Aerospace (CEO) Chris Baur also noted that the demonstrations were done in Instrument Meteorological Conditions (IMC), providing a real world flight environment for the airline pilots (FC).
"We built (GLS) approaches to all of the runways at Pudong," said Baur. "We built (GLS) approaches to 35L and 35R, plus 17L and 17R. Then we did something that hasn’t been done anywhere before, where we built multiple (GLS) approaches to one runway. For Runway 35L, we built a straight-in (GLS) approach and variable geometric path approaches, 1 with a 2.8 degree flight path angle and 1 with a 3.2 degree flight path angle.
Baur said the team also built two non-linear curved path, or (XLS), approaches for Runway 35L, and the approach was flown to an automatic landing in (IMC) conditions. The trial flights provided a demonstration that exploited all of the benefits of the SmartPath technology, such as the ability to merge (GLS) with Required Navigation Performance (RNP) procedures to create a custom path to the runway based on the type of airplane being flown.
Davis said the implementation of the new procedures at Pudong can provide a model for dealing with wake turbulence issues from different airplanes as well. With heavier airplanes such as Boeing 747s, 777s or Airbus A380s dispersing an enormous amount of wake turbulence from the wings, airplanes in trail behind them are often forced to maintain very lengthy, separation distances. An airport as busy as Pudong can face huge efficiency challenges when this happens.
"The variable glide-path allows the SmartPath station to send a signal to the airplane that will allow it to fly a 2.8 or 2.9 or basically any glide-path one would like. It allows pilots (FC) to fly a much shallower glide-path than they would with an (ILS)," said Davis. "SmartPath allows for up to 26 different approach combinations. That means for the same runway, one can have an approach at a 2.8 degree glide-path. That’s where one brings the A380s and the Boeing 777s in. To the exact same runway, one can actually have the SmartPath station send a signal on a different channel to the smaller airplane that will allow it to come in at a 3.1 degree glide-path, for example, so wake turbulence always disperses downward. If those larger airplanes are brought in at a shallow glide-path and the smaller aircraft in at a steeper glide-path, that means the 737 and A320 are always above the wake turbulence footprint of the larger airplane."
SmartPath has already been deployed in Australia, Brazil, Germany, Spain, and Switzerland, and the (CAAC) sees it as one of the key tools for managing future increases in air traffic. The International Air Transportation Association (IATA) expects China to have 415 million air travel passengers annually by 2016, which would be 2nd only to the USA in domestic passenger volume.
According to Davis, the majority of airplanes coming off of production lines today are equipped with Multi-Mode Receivers (MMR) capable of performing (GBAS) landings, and the localizer guidance and glide slope guidance for a SmartPath approach, looks the same to a flight crew (FC) as if they were flying an (ILS) approach.
Going forward, the new procedures must now be certified by the (CAAC) and Air Traffic Management Bureau. "We should have this station up and certified by the end of 2015, or the early part of 2016, with many airlines ready to fly the new (GBAS) procedures shortly thereafter," said Davis.
737-85N (41624, B-1508) delivery.
July 2015: News Item A-1: On July 2, Shandong Airlines (SHG) returned the last Bombardier CRJ-200 airplane to New United Aerospace, bidding an official farewell of its CRJ-200 fleet. The CRJ-200 (B-3005), was the last one delivered by Shandong Airlines (SHG), followed by the other 4 airplanes (B-3008, B-3009, B-3007 and B-3006).
On Decemeber 9, 2014, Shandong Airlines (SHG) and the New United Group signed a comprehensive agreement to transfer (SHG)'s last 5 CRJ-200s, marking its entry into an era of an all Boeing 737NG fleet.
Shandong Airlines (SHG), hailed as "Wings of Shandong," is a B-Share listed company on the Shenzhen Stock Exchange. Over the past 20 years, (SHG) has always valued "Safety, Efficiency, Punctuality and High-quality Service" as its priorities. Up to now, it owns 81 airplanes in service including 79 737s and 2 CRJ-700s, and it has the vision to grow into a large airline company with 100 airplanes by the end of the 12th 5-year plan.
News Item A-2: With the landing of a brand-new Boeing 737-85N (44918, B-1510) airplane at Jinan Yaoqiang International Airport (TNA), Shandong Airlines (SHG) welcomed its 7th airplane to be delivered this year.
This is also (SHG)'s 12th airplane equipped with a premium economy (PY) class. With the arrival of new airplane, (SHG) will add more flights to Qingdao, Chongqing and other popular tourist destinations.
(SHG) is set to launch a daily, Chongqing - Yancheng - Dalian route on July 27, using 737-800s. The outbound flight SC8791 is scheduled to take of from Chongqing at 10:30 am and arrive in Dalian at 2:50 pm, with a stopover in Yancheng from 12:45 pm to 1:30 pm; while the return flight SC8792 will take off from Dalian at 3:40 pm and land in Chongqing at 8:15 pm, with a stopover in Yancheng. On the same day, (SHG) will increase the frequency of Qingdao - Chongqing service to daily.
In addition, starting August 1, (SHG) will add more flights on domestic routes from Xiamen to Chongqing, Yinchuan, and Lanzhou.
737-85N (41625, B-1511), delivery.
August 2015: 737-800 (B-6985), Shandong Airline's (SHG) 9th jet this year bringing its fleet to 79.
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.
737-85N (41627, B-6986) delivery.
October 2015: Air China (BEJ)'s subsidiary, Shandong Airlines (SHG) took delivery of a brand new Boeing 737-800 on the afternoon of October 26, increasing (SHG)'s fleet size up to 86.
The new 737-800 (B-6988), is (SHG)'s 11th 737-800 received this year, and is also the 17th 3-class layout plane with the premium economy (PY) class.
From this April when 2015 summer/autumn flight season started, Shandong Airlines (SHG) put its Guiyang base into operation. Up to date 3 737-800 planes have been put into the night base.
The newly-received airplanes will perform the Guiyang - Wenzhou and Wenzhou - Qingdao - Shenyang flights, after being put into the Guiyang base.
August 2016: News Item A-1: Shandong Airlines (SHG), a fully-owned subsidiary of Air China (BEJ), on August 18 launched a 3x-weekly service between Jinan (TNA) and Tokyo Haneda (HND). The 2,023 km route is not served by any other carrier. Flights depart Jinan at 22:45 on Tuesdays, Thursdays and Fridays arriving in Japan at 03:00 the following day. The return service leaves Tokyo at 04:30 getting in to Jinan at 07:20. This is (SHG)’s 3rd route between China and Japan, as it already links Jinan and Qingdao with Osaka Kansai on a daily basis. This new route, operated by (SHG)’s 737-800s, means that (SHG) now has around 1.4% of the seat capacity between China and Japan, well behind market leaders China Eastern Airlines (CEA) (22.2%), All Nippon Airways (ANA) (18.1%) and Air China (BEJ) (15.6%).
Apart from Japan, Shandong Airlines (SHG) also serves destinations in Cambodia, India, South Korea, Taiwan, and Thailand.
Newqs Item A-2: 2 737-85Ns (61429, B-7977; 61430, B-7978), deliveries.
December 2016: 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 5-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).
February 2017: Shandong Airlines (SHG) 737-85N (43895, B-7885), (ICBC) Leasing leased.
May 2017: Shandong Airlines (SHG) takes delivery of its 100th 737 NextGeneration 737-85N(WL) (6285-60160, B-7669). This airplane has large rear fuselage titles marking this "100th" distinction.
Based in Jinan, (SHG) operates mainly domestic trunk routes from Japan, Qingdao, and Yantai to major cities in China.
737-8AL (35075, B-5331), last revenue flight, stored at Jinan. 737-85N (60164, B-1436), ex-(N1787B), (CDB) Leasing leased.
February 2018: 737-800 (63768, B-1359), Standard Charter Bank leased.
April 2018: 2 737-800 (43908, B-1227), (ICBC) Financial Leasing leased and (61439, B-1226) deliveries.
May 2018: 737-800 (43909, B-1273), (ICBC) Financial Leasing leased.
Click below for photos:
SHG-737-800 - 2013-10
SHG-737-800 - 2015-10.jpg
SHG-737-85N - 2013-08
0 737-3YOQC (CFM56-3B1) (1242-23499, /86 B-2165; 1243-23500, /86 B-2166; 2349-26070, /92 B-2534; 2369-26072, /92 B-2595), EX-(XIN), (GEF) 7 YEAR LEASED 2000-03, EX-(AMW), 2001-10, 23499; 23500; 26070; & 26072; RETURNED 2003-08. SHANDONG AIRLINES CARGO OPERATIONS, 2002-04. 141Y/QUICK CHANGE.
1 737-300 (CFM56-3C) (B-2877), LEASED 2013-12.
0 737-31L (CFM56-3B1) (2567-27276, /94 B-2931), (XIJ) 6 MONTH LEASED 2001-10, 141Y.
1 737-33V (CFM56-3C1) (3062-29331, /98 B-2877; 3084-29333, /98 B-2877), EX-(EZY) 2005-03. 29333; RETURNED. 149Y.
3 737-35N (CFM56-3B1) (2774-28156, /96 B-2961; 2778-28157, /96 B-2962; 2818-28158, /96 B-2968), (CSC) LEASED, 141Y.
2 737-35N (CFM56-3C1) (3054-29315, /98 B-2995; 3065-29316, /98 B-2996), 141Y.
4 737-36Q (CFM56-3C1) (2940-28664, /97 B-5065; 3011-28761, /98 B-5066; 3013-29140, /98 B-5098, 3057-29189, /98 B-5099), EX-(ANZ); (BOU) LEASED. 28664; 28761; WET-LEASED TO (BEJ) 2005-01. 136Y.
1 737-36Q (CFM56-3C1) (2989-28760, /98 B-2878), EX-(FRO), (BOU) LEASED 2005-06. 136Y.
1 737-36Q (CFM56-3C1) (3047-29405, /98 B-2111, 2005-09), (ACG) LEASED. 148Y.
16 ORDERS (2016-02) 737NG (CFM56-7B):
10 ORDERS 737-700/-800 (CFM56-7B):
10 737-75N (CFM56-7B22) (1742-33666, /05 B-5206; 1790-33654, /05 B-5205; 1838-33663, /05 B-5207), WITH WINGLETS. 135Y.
2 737-8AL (CFM56-7B26) (2197-35073, /07 B-5321; 2287-35075, /07 B-5331; 3359-37954, B-5537, 2010-08), (SIL) 10 YEAR LEASED. 35075 LAST REVENUE FLIGHT, STORED AT JINAN 2017-05. WITH WINGLETS. 180Y.
6 737-8FH (CFM56-7B26) (2295-35095, /07 B-5332; 2336-35096, /07 B-5333; 2345-35097, /07 B-5335; 2361-35098, /07 B-5336; 3368-40882, B-5541, 2010-08; 40883, B-5542, 2010-09), (RBS) AEROSPACE LEASED. 180Y.
2 737-8FZ (CFM56-7B26) (3237-31717, B-5526, 2010-04; 3280-29659, B-5531, 2010-05), (BBB) LEASED. 180Y.
1 737-8HX (CFM56-7B) (38103, B-5626), (GCP) LEASED 2012-01. 180Y.
1 737-800 (CFM56-7B) (43909, B-1273), (ICBC) FINANCIAL LEASING LEASED 2018-05. 180Y.
28 737-85N (CFM56-7B26) (1726-33664, /05 B-5118; 1752-33660, /05 B-5111; 1770-33661, /05 B-5117; 1775-33665, /05 B-5119; 2429-36190, /07 B-5347; 2453-36191, /07 B-5348; 2823-36195, /09 B-5352 - - SEE PHOTO - - "SHG-737-85N-2009-03;" 2642-36192, /08 B-5349; 2669-36193, /08B-5350; 2684-36194, /08B-5351; 2823-36195, /09 B-5352; 2874-36773, /09 B-5450; 2944-36774, /09 B-5455; 2951-36775, /09 B-5457; 2998-36776, /09 B-5451 "JINAN - CITY OF SPRINGS" - - SEE PHOTO - - "SHG-737-85N-2009-09;" 3045-36777, /09 B-5452; 3277-36778, B-5453, 2010-05; 38627, B-5627, 2012-01; 38641, B-5650, 2012-07; 39111, B-5782, 2013-06; 39112, B-5783, 2013-07; 39113, B-5785, 2013-08 - - SEE ATTACHED - - "SHG-737-85N - 2013-08;" 39127, B-5786, 2013-08; 3934-39125, B-5628, 2012-02; 3383-40883, B-5542; 41620, B-1742, 2015-01; 41621, B-1745, 2015-01; 41624, B-1508, 2015-05; 41625, B-1511, 2015-07; 41627, B-6986, 2015-09; 41717, B-1985, 2014-08; 44918, B-1510, 2015-07; 60159, B-7668, 2017-01; 6285-60160, /17 B-7669, 2017-05 (100TH 737NG); 61429, /16 B-7977, 2016-08; 61430, /16 B-7978, 2016-08), 36775; TRANSFERRED TO (BEJ). WITH WINGLETS. 180Y.
2 737-85N (CFM56-7B) (43895, B-7885, 2017-02; 44918, B-1510, 2015-07), WITH WINGLETS. 1ST 2 CLASS, PY, Y.
1 737-85N (CFM56-7B) (39332, B-5781), (BBB) LEASED 2013-06.
1 737-85N (CFM56-7B) (60164, B-1436), EX-(CDB) LEASING LEASED 2017-05.
1 737-85P (CFM56-7B) (35493, B-5490), AERDRAGON AVIATION LEASING LEASED 2011-04. 180Y.
2 737-85P (CFM56-7B) (39329, B-5723; 39332, B-5781), (BBB) LEASED 2013-01. 180Y.
3 737-86N (CFM56-7B) (36546, B-5513, 2010-06; 38013, B-5560, 2010-12; 38016, B-5561, 2010-12), (GEF) LEASED, EX-(N1796B). 180Y.
3 737-89L (CFM56-26) (40039, B-5757, 2013-07; 40043, B-5755, 2013-06; 40044, B-5758, 2013-08), TRANSFERRED FROM (BEJ) ON DELIVERY. 180Y.
1 737-89L (CFM56-26) (40040, /13 B-5856), WITH "INTERNATIONAL HORTICULTURE EXPOSITION 2014 QINGDAO" TITLES. 180Y.
1 737-89L (CFM56-26) (41096, B-1987). 180Y.
2 ORDERS 737-800 (CFM56-7B), (SIL) LEASED.
1 737-800 (CFM56-7B) (B-1988), 2014-09.
1 737-800 (CFM56-7B) (B-6985, 2015-08).
2 737-800 (CFM56-7B) (B-6988, 2015-10; 61439, B-1226, 2018-04), WITH WINGLETS.
1 737-800 (CFM56-7B) (63768, B-1359), STANDARD CHARTER BANK LEASED 2018-02.
1 737-800 (CFM56-7B) (43908, B-1227), (ICBC) LEASING LEASED 2018-04.
34 ORDERS (2017-06) 737 MAX:
1 XIAN Y-7-100, 52 PAX.
0 SAAB 340B (CT7-9B) (336; 351; 357; 360), EX-(FRM), SEAN-HO LEASED 1999-01. 351 RETURNED 12/01, 336, SOLD TO (MDN) 2002-10. 289; 292; 296; 302; SOLD 2003-11. 302 DS AVNIT LEASED (AGAIN) 2004-05. 36Y.
4 ORDERS BOMBARDIER DASH 8-300.
0 BOMBARDIER CRJ-200LR (CL-600-2B19) (CF34-3B1) (7435, /00 B-3005; 7443, /00 B-3006; 7498, /01 B-3007; 7512, /01 B-3008; 7522, /01 B-3009; 7557, /01 B-3010; 7565, /01 B-3012; 7614, /02 B-3016; 7690, /02 B-3076; 7704, /02 B-3078), 7565 RETURNED 2004-05. 7565; TRANSFERRED TO HUAXIA AIRLINES 2007-09. 50Y.
0 BOMBARDIER CRJ-200ER (CF34-3B1), TYROLEAN LEASED 16 MONTHS 2001-02, 50Y.
0 BOMBARDIER CRJ-700 (CL-600-2C10) (10118, /03 B-3079; 10120, /03 B-3080), 70Y.
1/37 ORDERS CESSNA GRAND CARAVAN (PT6A-114A), 9Y.
4 CESSNA CARAVAN 675 FLOAT PLANES (PT6A-114A).
2 CHALLENGER 604 BBJ.
Click below for photos:
JIA FU WEN, CHAIRMAN (SHG) Group.
LI JUN HAI, CHAIRMAN (SHG) AIRLINES.
FENG GANG, PRESIDENT.
GUOQIANG ZENG, CHIEF EXECUTIVE OFFICER (CEO).
ZHAO FENG XIANG, PRESIDENT STAECO, EX-(SHG) (1999-03).
JIANG MING HUA, PRESIDENT ENGINEERING DEPARTMENT, (SHG) (1999-03).
XU ZHEN BIN, ASSISTANT TO THE PRESIDENT (MAINTENANCE & ENGINEERING)
QING'EN LI, CHIEF FINANCIAL OFFICER (CFO).
XIA FUWEN, VICE PRESIDENT.
ZHANG XINGFU, VP & SECRETARY.
YUXIA SONG, VP OPERATIONS.
ZENG GUO QIANG, VP FLIGHT OPERATIONS.
ZHANG QING SHE, CHIEF PILOT.
YANG TAO, ADVISOR TO THE PRESIDENT, FLIGHT OPERATIONS.
XU ZHEN BIN, ADVISOR TO THE PRESIDENT, MAINTENANCE & ENGINEERING.
GAO ZHU, GENERAL MANAGER.
SONG YU XIA, VICE GENERAL MANAGER.
HE GUO BIN, CHIEF ENGINEER (email@example.com).
MA HONG SHENG, DIRECTOR TECHNICAL SAFETY (firstname.lastname@example.org).
LI DE LIN, DIRECTOR MAINTENANCE (OUTSTATIONS).
XIONG JIAN BO, DIRECTOR MAINTENANCE & ENGINEERING (2001-12).
LIU ZHAO LEI, DIRECTOR ENGINEERING & QUALITY CONTROL (QC) (email@example.com).
YANG SHIKUN, DIRECTOR SPARES.
TANG JIANYONG, VICE DIRECTOR QUALITY ASSURANCE (QA) (2001-06).
WANG CHAO, MANAGER PRODUCTION (2001-06).
YU GUANGJUN, VICE DIRECTOR TECHNICAL DEPARTMENT (2001-06).
LI SHUNGUANG, VICE DIRECTOR TECHNICAL DEPARTMENT (2001-06).
HUANG EN FANG, DEPUTY DIRECTOR ENGINEERING & MAINTENANCE (1999-12).
ZHANG QINGSHE, VICE DIRECTOR FLIGHT SAFETY (2001-08).
YANG GUANG YAO, DEPUTY CHIEF TECHNICAL SERVICES,
QINGSHE ZHANG, CHIEF FLIGHT OPERATIONS MANAGER.
WU XIN MIN, MANAGER FLIGHT PLANNING.
XU CUI, MANAGER FLIGHT STANDARDS.
HAN YONG QIANG, MANAGER ENGINEERING.
SHEN HAI PENG, DEPUTY MANAGER ENGINEERING.
YAN BOA YOU, CHIEF INSPECTOR.
ZHAO TAI SHENG, ADVISOR AIRCRAFT MAINTENANCE.
REN JIA, CHIEF ENGINEER (TEMPORARILY ABSENT).
GAO WEN DA, MANAGER PRODUCTION.
MISS YU XIAO, HEAD TECHNICAL LIBRARY (1999-03).
THE FOLLOWING WORK FOR SUBSIDIARY, STAECO (SEPARATE FROM SHANDONG):
(T: (86+531) 873-7967). (FAX: (86+531) 873-7975).
JIA FU WEN, CHAIRMAN.
CHAN PING KIP, CEO (2003-03).
HUANG EN FANG, GENERAL MANAGER.
HUANG MAN TANG, VICE GENERAL MANAGER.
XIE NING, FINANCIAL DIRECTOR.
MENG QIU YE, SENIOR MAINTENANCE MANAGER.
MA FU SHAN, BASE MAINTENANCE MANAGER.
MA HONG TAO, HEAD OF PLANNING.
YANG SUI LI, SENIOR COMMERCIAL MANAGER.
YANG GUONG YAO, HEAD TECHNICAL SERVICES (firstname.lastname@example.org).
HAN YONG QIANG, HEAD OF TRAINING (2003-03).
LIU JING, SENIOR QUALITY MANAGER.
HAN YONG QIANG, QUALITY ASSURANCE (QA) INSPECTOR.
HUANG YONG, SPARES DEPARTMENT MANAGER.
GUO CHUN TING, FIELD LINE MAINTENANCE MANAGER.