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FORMED IN 1992 AND STARTED OPERATIONS IN 1993. SCHEDULED & CHARTER, PASSENGER & CARGO, DOMESTIC, JET AIRPLANE SERVICES.
16 FU TIAN YI JIE
TIAN ZHU TOWN, SHUN YI DISTRICT
BEIJING 101312, 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.
APRIL 1993: TO 13 DESTINATIONS.
1 737-341, EX-VARIG (VAR) DELIVERY.
OCTOBER 1993: 2 737-300'S (PQ804; PQ805), EX-DELTA AIRLINES (DAL) DELIVERIES.
DECEMBER 1993: 1 737-39K (PM546) DELIVERY.
JANUARY 1994: 4 +1 ORDER (AUGUST 1994) 737-300'S (CFM56-3C1 & -3B2)
AUGUST 1994: 1 737-300 DELIVERY.
JUNE 1995: INTEREST SHOWN IN 737-700.
34 FLIGHTS/WEEK FROM BEIJING, & 15 FLIGHTS/WEEK FROM TIANJIN.
APRIL 1996: 1 737-400 (PW002, 23866), 3 YEAR LEASED FOR TIANJIN TO SHANGHAI, GUANGZHOU & BEIJING (CFM56-3C1).
OCTOBER 1996: SIGNED WITH BOULLLION (BOU) FOR +1 737-300 & 2 737-400'S (MARCH 1997). ALSO REVIEWING LUFTHANSA (DLH) PROPOSAL FOR 3 737-400'S. AIRPLANES TO BE BASED IN BEIJING. CONSIDERING LEASE OF 2 737-800 PER YEAR, 1998 - 2000.
APRIL 1997: KUNMING TO SI MAO (YUNNAN).
1 737-300, BOULLION (BOU) LEASED. +2 (AUGUST & SEPTEMBER 1997).
AUGUST 1997: 1 737-400 DELIVERY (PW852).
SEPTEMBER 1997: AS PART OF BEIJING INTERNATIONAL AIRPORT EXPANSION, AND MODERNIZATION, A NEW HANGAR IS BEING CONSTRUCTED, STARTING IN DECEMBER 1997, TO BE DONE BY MID-1999, AND HANDLE 2 737'S.
1 737-400 DELIVERY.
OCTOBER 1997: 1 737-46Q (28758), BOULLIOUN (BOU) LEASED.
JAN 1998: 1 737-46Q (CFM56-3C1) (2981-28759), BOULLIOUN (BOU) LEASED.
APRIL 1998: RETURNED 737-400 (PW002) TO BOULLIOUN (ONTO CRONUS AIRLINES (CRM) AFTER "C" CHECK. RECEIVED NEW 737-400 (PW584), (BOU) LEASED.
JULY 1998: LAN SHI LIANG PRESIDENT, REPLACES JIANG BO YUE, WHO RETIRED. MR LAN CAME FROM CENTRAL PLANNING COMMISSION, WHERE HE WAS MINISTER OF LONG RANGE PLANNING.
FEBRUARY 1999: FOLLOWING RECENT (CAAC) AUDIT, HAS FORMED A DEPARTMENT DEDICATED TO WRITING, PUBLISHING, AND MAINTAINING A GENERAL MAINTENANCE MANUAL.
APRIL 1999: 500 EMPLOYEES.
OCTOBER 1999: 1ST 9 MONTHS = 110.98 MILLION (RPK) TRAFFIC, 1.92 MILLION (FTK) FREIGHT TRAFFIC, 902,000 PASSENGERS (PAX).
APRIL 2000: 500 EMPLOYEES.
JULY 2000: 1999 = 1.11 BILLION (RPK) TRAFFIC; 1.92 MILLION (FTK) FREIGHT TRAFFIC; 902,000 PASSENGERS (PAX); 500 EMPLOYEES.
SEPTEMBER 2000: MAINTENANCE INFORMATION DIVISION RELEASES 1ST ISSUE OF CHINA XINHUA MAINTENANCE INFORMATION MAGAZINE, INCLUDING AVIATION ARTICLES FROM WEB SITES, MAGAZINES AND BEING TRANSLATED INTO CHINESE, AND DISTRIBUTED TO ALL CHINA XINHUA AIRLINES (XIH) MANAGERS.
NOVEMBER 2000: CHINA XINHUA AIRLINE (XIH) SIGNED A CUSTOMER SERVICES GENERAL TERMS AGREEMENT (CSGTA) FOR ELECTRONIC CONNECTION TO myboeingfleet.com. IT EXPECTS TO ACCESS WEB THIS MONTH.
DECEMBER 2000: CAPTAIN ZHAO ZHONG YING PRESIDENT, REPLACED LAN SHI LIANG. YANG JING LIN VP TECHNICAL SERVICES, REPLACED WU YUDONG.
FEBRUARY 2001: TO MERGE WITH HAINAN AIRLINES (HNA).
MARCH 2001: HAINAN AIRLINES (HNA) TO INVEST $97.5 MILLION, INCLUDING AIRPLANES, AND $15.2 MILLION IN CASH, IN CHINA XINHUA AIRLINES (XIH). MERGER FORMS THE CHINA XINHUA GROUP TO MANAGE BOTH AIRLINES, INCLUDING 60% (HNA) MANAGEMENT, AND 40% (XIH) MANAGEMENT. BOTH AIRLINES SEPARATE, EXCEPT (HNA) WILL BASE 3 737-800'S, AT BEIJING INTERNATIONAL AIRPORT.
APRIL 2001: ENGINEERING GROUP MOVED FROM TIANJIN TO BEIJING.
MAIN BASES: BEIJING (CAPITAL INTERNATIONAL); & TIANJIN (ZHANG GUIZHUANG).
OCTOBER 2001: MOVE OF ENGINEERING & MAINTENANCE PERSONNEL FROM TIANJIN TO BEIJING, HAS BEEN DELAYED FOR ABOUT 1 YEAR.
NOVEMBER 2001: ALL HAINAN AIRLINES (HNA) 737-800'S TO BE LEASED TO CHINA XINHUA AIRLINES (XIH), AND BASED IN BEIJING IN JANUARY 2002. ALL 767'S TO BE DELIVERED TO (HNA) IN 2002, WILL BE LEASED TO (XIH), AND OPERATE OUT OF BEIJING.
TIANJIN BRANCH PRODUCTION PLANNING & CONTROL (PPC) MOVES TO BEIJING.
April 2002: Main Base: Tianjin (Zhang Guizhuang) (TSN).
Hub: Beijing Capital International (PEK).
October 2002: 2 767-34PER's (33047, B-2490) deliveries, to be operated by China Xinhua Airlines (XIH), will typically remain overnight in Beijing. Hainan Airlines (HNA) will provide Engineering support out of Haikou. Also, "A" & "C" airplane maintenance checks are to be performed in Haikou by (HNA).
The 767-300ER's will be deployed initially on domestic trunk routes, (to Haikou, Shanghai, and Urumqi) and regionally to Singapore, and Seoul. May fly transpacific routes in 2003.
January 2003: 767-34PER (33049, B-2492), Hainan Airlines (HNA) wet-leased.
December 2003: 737-86N (30231, B-5081), GECAS (GEF) leased.
March 2004: 737-86N (28614, B-5080), (GEF) leased.
October 2005: Global financier George Soros agrees to invest +$25 Million more in Hainan Airlines (HNA), doubling his investment (he had made a $25 Million investment in (HNA) in 1995 to buy 14.8% of (HNA). The funds will go to Grand China Air, a carrier (HNA) is putting together by merging 3 smaller rivals. (HNA), China's 4th-largest carrier, will merge with 3 smaller airlines: Xinhua (XIH), Chang An (CGN) and Shan Xi (CHG) to form Grand China Air. An (HNA) spokesperson said that USA financier George Soros agreed over the weekend to invest $25 million for approximately 4% of the new carrier. (HNA) is trying to raise $1.06 billion to buy airplanes and add routes ahead of the 2008 Summer Olympics and the 2010 Shanghai World Expo.
February 2006: 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 five 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 five 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 five years had amounted to only CNY10 billion.
April 2007: "Grand China Air (GCA)," the company established in 2004, combining (HNA) Group's Hainan Airlines (HNA), Xinhua Airlines (XIH), Changan Airlines (CGN), and Shanxi Airlines (CHG), received its operating license from (CAAC) (CAC), the Centre for Asia Pacific Aviation (CAPA) said. The way now is paved for "Grand China" to complete a listing in Hong Kong, possibly as early as the second half of this year. (CAPA) Executive Chairman, Peter Harbison said the listing could raise up to $500 million. Hainan (HNA), once a leisure-only carrier, now derives 16% of its capacity from Beijing, and only 9% from Haikou, the capital of Hainan Province. It plans to add two 737-800s, three A319s and two A330s to its fleet of 101 airplanes this year. (HNA) Group's expansion plans also include its new regional, Grand Xinhua Express (GXE).
June 2007: The (CAAC) granted a public air transport enterprise operating license to the (HNA) Group for its "Grand China Air (GCA)" entity, bringing the Hainan Airlines (HNA) parent one step closer to launching its new carrier, which will combine Hainan (HNA) along with Xinhua Airlines (XIH), Changan Airlines (CGN), and Shanxi Airlines (CHG), and be the country's fourth-largest commercial carrier.
(HNA) Group President, Chen Feng called the license "an important milestone." It follows the April award of (GCA)'s general aviation business license. Chen said "Grand China" now will work toward merging the four carriers, raising CNY5 billion/$654.9 million in capital and listing the new company on the Hong Kong Stock Exchange, possibly by year end.
(HNA) currently holds 60% of Xinhua (XIH), 93.75% of Shanxi (CHG), and 81.16% of Changan (CGN). An internal source said that "Grand China Air (GCA)" Holding will purchase the remaining outstanding shares of the three airlines "very soon."
(GCA), to be based in Beijing, has registered capital of CNY3.09 billion. State-owned, Hainan Development Holding holds 48.6%, with a CNY1.5 billion investment, while (HNA) Group and Starstep Ltd hold 19.1% and 18.6%, respectively. Minority shareholders are Yangtze River Investment Holding (8.1%), and Hainan Qixing Investment (5.3%).
Industry analysts have pointed out that (HNA)'s asset liability rate, which has been as high as 94.3%, would mitigate its ability to raise funds for fleet expansion. Launching (GCA) and listing in Hong Kong will allow it to attract more strategic investors, while evading certain financial risks.
(HNA) currently holds 9% of the domestic air transport market, that is dominated by Air China (BEJ), China Southern Airlines (GUN), and China Eastern Airlines (CEA).
September 2007: Hainan Airlines (HNA) posted a +CNY189.71 million/+ $25.18 million net profit in the first half of 2007, a better-than-eightfold increase over +CNY20.8 million earned in the year-ago period, on a +13.1% lift in operating revenues to CNY6.53 billion.
(HNA) credited the strong performance to improvements in operating efficiency and "reinforcement of its branding value," while industry analysts also cited "bullish domestic market demands" and appreciation of the yuan. Operating expenses rose +16.14% to CNY5.36 billion. Passenger boardings jumped +21.2% to 7.47 million while cargo traffic grew +15.45% to 1.14 billion (FTK)s.
Concurrent with the earnings announcement, the company said that "Grand China Air" Holding has decided to purchase 31.7% of (HNA) subsidiary, Lucky Air (LKY) from another subsidiary, Shanxi Airlines (CHG). This is in line with (HNA)'s plan for the launch of its "Grand China Air" Entity.
Earlier this year, (HNA) Group Chairman, Cheng Feng noted that its "Grand China Air" Entity will merge its subsidiaries including Hainan Airlines (HNA), Xinhua Airlines (XIH), Changan Airlines (CGN)and Shanxi Airlines (CHG) to become the country's fourth-largest commercial carrier. (HNA) currently holds 60% of Xinhua (XIH), 93.75% of Shanxi (CHG), and 81.16% of Changan (CGN). An internal source said that "Grand China Air" Holding will purchase the remaining outstanding shares of the carriers "very soon."
October 2007: China Eastern Airlines (CEA) has an optimistic outlook about its cooperation with Singapore Airlines (SIA) as the carriers share common business interests, (CEA) President, Li Fenghua said. "Our deal with (SIA) is a milestone and a turning point for us," Li commented. The deal was sealed last month, but has yet to be approved by shareholders. By selling a 24% stake to (SIA), (CEA) more than quadrupled its net capital to CNY14.13 billion/$1.88 billion and dropped its debt ratio to 80.17% from 94.95%. But Li said that cash injection was not the airline's ultimate goal. He said at this summer's (IATA) (ITA) Annual General Meeting (AGM), that (CEA) aimed to improve its profitability and management level by introducing (SIA) as its strategic investor. Once (CEA) shareholders approve the arrangement, which is expected to occur at year end, (SIA) will send 12 senior officials to help facilitate cooperation in Flight Operations, Maintenance Repair & Overhaul (MRO), Service, Procurement, Marketing & Sales, and Training. Li also noted that (CEA ) is working on building its "Shanghai hub," and is targeting an increase of its share in that market from the current 36% to 50%. By 2010 it will develop a hub-and-spoke system, with Shanghai serving as an international passenger and freight hub, while Kunming, Xi'an and Wuhan will act as its domestic regional hubs. It expects to operate a fleet of 322 airplanes by that time, he added, compared to the 209 it was flying at the end of July.
Xinhua (XIH) reported that Li this week rejected the idea of a "super mega carrier" proposed by Air China (BEJ) President, Li Jiaxiang, who has suggested a merger between (BEJ) and domestic competitors, including (CEA), that would gain a stronger foothold in China and be better positioned to compete against foreign airlines. "It's not suitable for China to have only one 'super mega carrier' as it will damage the competition environment in China's airline industry," Li said.
November 2007: (HNA) Group's "Grand China Air (GCH)," designed to be the country's 4th-largest commercial carrier, launched on November 29 in Haikou, capital of Hainan Province, according to ex-(HNA) Chairman, Chen Feng. Hainan Development Holding Company holds 40.65% of (GCH) with an investment of CNY1.5 billion, while (HNA)'s Hainan Airlines (HNA) invested CNY900 million in a 24.08% stake. Other investors include Starstep, Yangtze River Investment, Pan American Aviation Holdings, Qiye Industrial Investment, Union Trans-Atlantic, and Perfect Star Investment. To pave the way for (GCH)'s launch, Chen resigned as Hainan Airlines (HNA) Chairman on November 1. (GCH) will be the controlling stakeholder in Hainan (HNA) and under Chinese regulations, the Chairman of a company that is the controlling stakeholder of a listed company cannot also Chair the listed company.
(GCH) will merge Xinhua Airlines (XIH), Changan Airlines (CGN), and Shanxi Airlines (CHG) into one entity. (HNA) currently holds 60% of Xinhua (XIH), 93.75% of Shanxi (CHG), and 81.16% of Changan (CGN). (GCH) will aim to purchase the remaining outstanding shares of those carriers "very soon." Chen also noted that the new entity plans to be listed on the Hong Kong stock exchange. "Hainan Airlines (HNA) aims to solve its high debt ratio, by reorganizing to launch Grand China Air (GCH) and to list in Hong Kong, as the debt ratio would negatively impact raising funds for fleet expansion," he said. (HNA)'s debt ratio was about 80% in the third quarter.
Grand China Air (GCH), created by the (HNA) Group to be the country's 4th-largest commercial carrier, operated its 1st flight from Beijing to Dalian, although it postponed the ceremony to mark its launch to next month. (GCH) will operate under the (IATA) code of CN. It is noteworthy that it chose to operate out of Beijing, while its HQ remains in the provincial capital of Haikou. An industry insider said that (GCH) "has no other alternatives," as the Hainan provincial government made its CNY1.5 billion investment contingent on the headquarters remaining in the province. "Meantime, (CAAC) also wouldn't approve its name as "Grand China Air" (GCH) unless it is based in Beijing. (HNA) has the ambition to be a national carrier, so it didn't want to give up the name," the source said. (HNA) said it will merge Hainan Airlines (HNA), Xinhua Airlines (XIH), Changan Airlines (CGN), and Shanxi Airlines (CHG) into 1 entity "very soon," after which it will list on the Hong Kong Stock Exchange. Even then it will have a long way to go to catch the Big 3 of Air China (BEJ), China Southern Airlines (GUN), and China Eastern Airlines (CEA), which hold a combined 80% share of the domestic market while (GCH) grabs just 9%.
March 2008: Hainan Airlines (HNA) is in crisis following the appeal of six pilots (FC) to the Haikou arbitration committee to have their labor contracts terminated. The six resigned at the end of last year, bringing to 20 the number of (HNA) pilots (FC) who have walked out since 2006. The carrier has accepted none of the resignations and their disputes remain unresolved. Luo Zulin, one of the six who asked for arbitration, said the resignations were a result of "frequent overtime" and "long delays in getting their salary." (HNA) is insisting on the validity the contracts and denied Luo's accusation regarding pay. It said that if the committee ruled in the pilots (FC)'s favor, it would request several million yuan in compensation from them and the return of their licenses.
Air China (BEJ), China Eastern Airlines (CEA), Xiamen Airlines (XIA), and Xinhua Airlines (XIH) also have faced labor disputes with resigned pilots (FC), largely because Chinese carriers traditionally cover training expenses that can amount to millions of yuan per pilot (FC). There is considerable reluctance to allow them to transfer to competing carriers.
Under a Pilots Flow Management Proposal policy implemented by (CAAC) (CAC) in 2005, "the potential new employer" of these resigned pilots (FC) must attain the permission of the "old employer" before hiring, then pay compensation of CNY700,000 to CNY2.1 million/$98,300 to $294,800. According to (CAAC) (cac) statistics, China's commercial aviation fleet numbered 1,099 airplanes last September 30 and is expected to rise to 1,250 by 2010, leading to an estimated shortfall of -200 pilots (FC) annually.
In order to make up the severe shortage, carriers are beginning to follow the internationally common practice of recruiting privately trained pilots (FC). China Southern Airlines (GUN) started the trend last May, announcing its plans to recruit 100 such pilots (FC). Sichuan Airlines (SIC) followed three months later, hiring 50 private pilots (FC). Spring Airlines (CQH), East Star Airlines (ESR), and United Eagle Airlines (UEG) have disclosed their interest in recruiting such pilots (FC).
July 2010: China Xinhua Airlines (XIH) as a subsidiary of Hainan Airlines (HNA), operates scheduled trunk services from Beijing and Tianjing, together with charter jet airplane flights.
(IATA) Code: XW. (ICAO) Code: CXH (Callsign - XINHUA).
Parent organization/shareholders: Hainan Airlines (HNA) (60%); others (40%).
Main Base: Beijing Capital International Airport (PEK).
Hub: Tianjin Binhai International airport (TSN).
September 2011: Hainan Airlines (HNA) reported a first-half net profit of +CNY669.52 million/+$104.7 million, up +20.2% compared to net income of +CNY556.83 million in the year-ago period, owing to “robust growth of domestic market demand.”
Operating revenue jumped +19.6% to CNY11.56 billion, while operating expenses rose +18.1% to CNY8.74 billion. Passenger boardings rose +4.3% to 9.6 million, with an average load factor of 83.7% LF, up +2.5 points year-over-year. Cargo traffic volume decreased -2.3% to 132,100 tonnes. Average airplane utilization rate reduced -10.9% to 9.46 hrs.
As of June 30, (HNA) operated a total fleet of 105 airplanes, comprising 6 737-300s, 9 737-400s, 72 737-800s, 3 A330-300s, 7 A330-200s, 3 A340-600s, 3 767-300s and 2 737-700s.
(HNA) announced its 3 subsidiaries also earned healthy 1st-half profits. China Xinhua Airlines (XIH) earned a net profit of +197.9 million, Chang’an Airlines (CGN) posted a net income of +51.1 million and Shanxi Airlines (CHG) reported a net profit of +27.4 million.
2 737-332 (CFM56-3B1) (2506-25997, /93 B-2942; 2510-25998, /93 B-2943), EX-(DAL), 144Y.
1 737-33A (CFM56-3C1) (2342-25505, /92 B-2579), 2007-09. FLORAL COLORS. 144Y.
1 737-341 (CFM56-3B2) (2303-26854, /92 B-2908), (CSC) LSD, 144Y.
1 737-36Q (CFM56-3C1) (2859-28657, /97 B-2982), (BOU) LSD 1997-03, 144Y.
2 737-39K (CFM56-3B1) (2559-27274, /93 B-2934; 2639-27362, /94 B-2945), (CSC) LSD 1993-12, 27362 RTND. 144Y.
2 737-46Q (CFM56-3C1) (2922-28663, /97 B-2987; 2939-28758, /97 B-2989; 2981-28759, /98 B-2993), (BOU)/(SIL) LSD, (28759) (SIL). 28633; TO BE CONVERTED TO F AND DELIVERED TO ATRAN (VTR), MOSCOW, RUSSIA IN SUMMER 2012. 8F, 138Y.
4 737-84P (CFM56-7B26) (1800-343030, /05 B-5141; 1832-32607, /05 B-5138; 1855-32608, /06 B-5139; 1921-34029, /06 B-5153), 2006-01. WINGLETS. 8F, 156Y.
2 737-86N (CFM56-7B26) (477-28614, /00 B-5080; 515-30231, /00 B-5081), (GEF) LSD. 8F, 156Y.
3 +7 ORDERS 767-34PER (PW4056) (889-33047, B-2490), (HNA) WET-LSD 2002-10.
CHEN FENG, CHAIRMAN GREAT CHINA AIR (GCH) (2007-11).
JINGLIN YANG, CHIEF EXECUTIVE OFFICER (CEO).
BAO QI FA, EXECUTIVE VP FLIGHT OPERATIONS & SAFETY.
SHAOPING WANG, DEPUTY DIRECTOR OPERATIONS.
CAPTAIN LIU ZHI, CHIEF PILOT 737-300/-400.
YANG JING LIN, VP TECHNICAL SERVICES (2000-12).
DING JIN KUAN, DIRECTOR QUALITY CONTROL (QC) (1998-07).
CHEN WEN BO, DIRECTOR MAINTENANCE PROGRAM PLANNING (1998-07).
JIANG XIN YING, DIRECTOR AIRCRAFT MAINTENANCE.
YU WEN YONG, DEPUTY GENERAL MANAGER MAINTENANCE & ENGINEERING, RELOCATED TO HAINAN (2001-05) (email@example.com).
SUN CHEN YAO, CHIEF ENGINEER (firstname.lastname@example.org).
MA WEN XIAO, MANAGER QUALITY ASSURANCE (QA) & RELIABILITY (1998-10).
CHEN SHI XIANG, CHIEF INSPECTOR.
DUAN BIN, CHIEF ENGINEER (1998-10).
LI ZONGKE, CHIEF AIRCRAFT ENGINEERING (2000-04).
CHANG ZHONG JIN, VICE MANAGER PRODUCTION & PLANNING.
MRS GUO JIE, MANAGER TECHNICAL PUBLICATIONS (1997-11) (TSN) & DIRECTOR MAINTENANCE & INFORMATION SUB-DIVISION,
MRS WANG FENG, VICE MANAGER TECHNICAL PUBLICATIONS (PEK).
ZHANG JING SHEN, AIR SAFETY (email@example.com).