||CHINA EASTERN YUNNAN AIRLINES
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FOUNDED IN 1992. FORMERLY YUNNAN PROVINCIAL IMPORT & EXPORT CORPORATION, ALSO (CAAC) YUNNAN PROVINCE. DOMESTIC, REGIONAL & INTERNATIONAL, SCHEDULED & CHARTER, PASSENGER & CARGO, JET AIRPLANE SERVICES.
KUNMING, YUNNAN PROVINCE 650200, CHINA
China (People's Republic of China) was established in 1949, it covers an area of 9,560,980 sq km, its population is 1,265 million, its capital city is Beijing, and its official language is Chinese.
JANUARY 1993: OPERATES TO 34 DOMESTIC AND 3 REGIONAL DESTINATIONS.
1 737-3W0 (CFM56-3B1) (PQ413), DELIVERY.
JULY 1994: ACCDT: (YUN) 737-300 ($40 MILLION) DESTROYED & WRITTEN OFF (W/O), IN OVERSHOOT LANDING AT KUNMING = 8 (FC) - (CA)/136 PASSENGERS OK.
JUNE 1995: $600 MILLION, 3/3 ORDERS (MAY 1996) 767-3WOER'S (RB211-524H), 2ND (RR) AFTER BRITISH AIRWAYS (BAB), 263 PAX, 2 CLASS (FIRST (F) & ECONOMY (Y). 1 737-3WO DELIVERY. 1 737-300 (PQ407) RETURNED TO ZHONGYANG AIRLINES (ZHO).
JANUARY 1996: 737-300 (CFM56-3C1) DELIVERY.
APRIL 1996: 1 ORDER (November 1996) 737-33A, & LIKELY +1 IN January 1997.
JULY 1996: 1ST 767-3WOER (RB211-524H) DELIVERY TO FLY TO BEIJING, GUANGZHOU, AND BANGKOK. 2ND IN SEPTEMBER, 1996. YUNNAN AIRLINES (YUN) IS 3RD CHINESE AIRLINE AFTER AIR CHINA (BEJ) AND CHINA SOUTHERN (GUN), TO RECEIVE A 767.
AUGUST 1996: COMPLETION OF $7.4 MILLION, 9,000 SQ FT HANGAR, & $1.8 MILLION, 3 STOREY, 9,500 SQ FT, MATERIAL STORAGE BUILDINGS.
SEPTEMBER 1996: YUN XUE YUAN, DIRECTOR MAINTENANCE & ENGINEERING.
2ND 767 DELIVERY FOR GUANGZHOU, BEIJING, SHANGHAI AND SHENZHEN.
OCTOBER 1996: THE FOLLOWING YUNNAN AIRLINES (YUN) PERSONNEL TO GO TO BOEING (TBC) EVERETT, FOR NEXT 767 DELIVERY IN JANUARY 1997: YANG JIN SEN, QUALITY CONTROL (LEADER), CHEN RONG HUAN, SYSTEMS & POWER PLANT, LI PING PING, SYSTEMS & ELECTRICAL, AND MA YUN TAO, AVIONICS.
STARTED CONSTRUCTION OF 12,000 SQ FT, MULTI-FLOOR CARGO HANDLING FACILITY, FOR EARLY 1997. NEEDS HELP WITH INNOVATIVE AIR FREIGHT CAPABILITY, E G, POOR PACKAGED FRESH FISH, ALLOWS FLUID SPILLS, CARRIAGE OF CARGO, IN PASSENGER CABIN ENTRY DOOR AREA, ETC.
NOVEMBER 1996: ADDING STAFF TO SUPPORT AIRLINE GROWTH. IN 1996, HIRED +45 MAINTENANCE TECHNICIANS (MT) PERSONNEL, WITH RECENT GRADUATES FROM CHINA'S AVIATION COLLEGES, OR MILITARY.
SUPPLIER RUMORED THAT YUNNAN AIRLINES (YUN) IS TO ORDER 3/2 737-300'S. CANCELLED 4TH 737-300, AWAS (AWW) LEASED.
JANUARY 1997: +2 ORDERS 737-300'S (NOW HAS 10). 1 767-300ER (RB211-524D4) (3RD) DELIVERY.
JUNE 1997: 4-MAN TEAM TO BOEING (TBC) RENTON, UNTIL MID-AUGUST 1997: YU XUE YUAN, DIRECTOR MAINTENANCE ENGINEERING DIVISION (LEADER); GONG ZHONG XING, MECHANICAL SYSTEMS SPECIALIST; WANG YUE ENG, ELECTRICAL SYSTEMS SPECIALIST, & PENG KUI, AVIONICS SPECIALIST.
STARTED WORK ON $.5 MILLION, AIRPLANE WORK STAND, FROM ADVANCED GROUND SYSTEMS ENGINEERING, ANAHEIM, CALIFORNIA, TO BE COMPLETED IN JULY 1997.
1 737-3YO TO BE RETURNED TO (GUI) IN EARLY 1998.
AUGUST 1997: 1 737-3WO DELIVERY (28972).
OCTOBER 1997: 2ND OF 4 737-300 DELIVERIES. LOCAL MEDIA REPORTS YUNNAN AIRLINES (YUN) IS TO HAVE 25 AIRPLANES BY DECEMBER 2000, INCLUDING 13 737-300'S, 5 737-700'S, & 4 767-300'S.
NOVEMBER 1997: 3RD 737-3W0 (29068). (CAAC) (CAC) AUDIT TO BE DONE.
DECEMBER 1997: 4TH 737-300 DELIVERY.
MARCH 1998: SENT 2 STRUCTURAL AIRCRAFT MAINTENANCE SPECIALISTS TO BOEING (TBC) COMPOSITE STRUCTURE INSPECTION SEMINAR IN XIAMEN.
APRIL 1998: LI CHANG XING PRESIDENT GENERAL MANAGER, EX-AIR CHINA (BEJ) & (CAAC) REPLACES XUE XIAO MING, WHO IS NEARING 60 (MANDATORY RETIREMENT AGE).
+2 ORDERS (NOVEMBER 1998) 737-700'S. POSSIBLE +2 737-700'S, FOR MID 1999, & 2 767-300'S.
MAY 1998: CHARTER SERVICE TO FUKUOKA, JAPAN (737-300).
JUNE 1998: $120.5 MILLION EXPANSION OF THE KUNMING, WU JIA BA AIRPORT, IS PROGRESSING ON SCHEDULE, WITH COMPLETION EXPECTED BY MAY 1999, WHEN A YEAR LONG INTERNATIONAL FLOWER SHOW BEGINS. ADDS +700,000 SQ FT OF AIRPLANE PARKING AREA.
CONVERTS 2 OPTIONS FOR +2 ORDERS 737-700'S (MID-1999).
AUGUST 1998: PLANS FOR CHARTER SERVICES TO FUKUOKA, HIROSHIMA, OKAYAMA, KUMAMOTO, OITA, MIYAZAKI, & FUKUSHIMA, JAPAN, VIA SHANGHAI.
OCTOBER 1998: 1ST 6 MONTHS = 1.21B (RPK) PASSENGER TRAFFIC, 42.89 MILLION (FTK) FREIGHT TRAFFIC, 1.56 MILLION PASSENGERS (PAX).
DECEMBER 1998: 1ST 2 737-7WO'S (CFM56-7B22), 140Y PAX DELIVERIES OF 4, VIA HONOLULU, MAJURO, & SAIPAN.
MARCH 1999: JAPAN AIR SERVICES (JAS) STARTS A300 FLIGHTS TO KUNMING FROM SAPPORO, WITH CHARTER JAPANESE TOUR GROUPS. IN MAY 1999, PLANS TO FLY 737-700 TO NEW DIQING AIRPORT, 10,840 FT ALTITUDE, IN NORTHERN PART OF YUNNAN PROVINCE, NEAR BORDERS OF SICHUAN AND XIZANG, ABOUT 250 MILES FROM KUNMING. NEW AIRPORT AT KUNMING TO BE COMPLETED NEXT MONTH.
MAY 1999: LI JUN MING DEPUTY DIRECTOR MAINTENANCE ENGINEERING, REPLACES ZHAO ZONG BAO WHO RETIRED.
STARTS NEW REGIONAL SERVICE TO HIGH ALTITUDE, DIQING AIRPORT, SERVING ZHONGDIAN CITY IN NORTHERN PART OF YUNNAN PROVINCE. CITY IS NEW TOURIST ATTRACTION, AS REDISCOVERED SHANGRI-LA. (APU) LIMITATIONS PREVENT SIMULTANEOUS USE OF ELECTRICAL & PNEUMATIC POWER ABOVE 10,000 FEET GROUND ALTITUDE.
NEW KUNMING AIRPORT OPENS.
"D" CHECK MAINTENANCE CONTRACT TO (GAMECO) (GUN), GUANGZHOU, FOR 737-300, GECAS (GEH) LEASED, TO BE RETURNED IN SEPTEMBER 1999.
JUNE 1999: FISCAL YEAR (FY) 1998 = +$24 MILLION. EXPECT TO DOUBLE PROFITS IN 1999.
3RD OF 4 737-7WO'S, (292-30074, B-2503), 140Y, DELIVERIES.
JULY 1999: 1st 6 MONTHS = 47.99 MILLION (FTK) FREIGHT TRAFFIC.
4TH 737-7W0 (30074, B-2503) DELIVERY.
AUGUST 1999: CIVIL AVIATION ADMIN CHINA (CAAC) APPROVES THE MERGER OF AIR CHINA (BEJ) WITH CHINA SOUTHERN AIRLINES (GUN). RUMORS IT WILL BE FOLLOWED BY CHINA NORTHERN AIRLINES (SHY) WITH CHINA EASTERN AIRLINES (CEA), AND CHINA NORTHWEST AIRLINES (CNW); AS WELL AS CHINA SOUTHWEST AIRLINES (XIN) WITH YUNNAN AIRLINES (YUN) AND SICHUAN AIRLINES (SIC).
SEPTEMBER 1999: 1ST 8 MONTHS = 2.80 BILLION (RPK) TRAFFIC, 80.23 MILLION (FTK) FREIGHT TRAFFIC, 3.36 MILLION PASSENGERS (PAX).
737-3YO (26068), RETURNED TO (GECAS) (GEH).
JANUARY 2000: 1ST 10 MONTHS 1999 = 3.13 BILLION (RPK) TRAFFIC, 97.40 MILLION (FTK) FREIGHT TRAFFIC, 3.85 MILLION PASSENGERS (PAX).
1 737-300 (PM412), RETURNED TO BABCOCK & BROWN (BBB), LEASED TO CHINA SOUTHERN AIRLINES (GUN), WET-LEASED TO SHANTOU AIRLINES (SHT).
FEBRUARY 2000: RUMORS OF POSSIBLE MERGER WITH CHINA SOUTHERN AIRLINES (GUN).
APRIL 2000: 2,300 EMPLOYEES. SITA: KMGTFCA.
1ST QUARTER = 543.6 MILLION (RPK); 19.18 MILLION (FTK) FREIGHT TRAFFIC; 674,000 PASSENGERS (PAX).
MAY 2000: 737-300 "D" MAINTENANCE CHECK CONTRACT TO (AMECO) (BEJ), IN JUNE 2000.
JUNE 2000: TO CHENGDU - JINZHOU (WEEKLY).
12-MEMBER (CAAC) (CAC) TEAM AUDIT, OF AIRPLANE MAINTENANCE ENGINEERING, AND FLIGHT OPERATIONS.
5 ORDERS 717-200'S, PEMBROKE (PEB) LEASED.
JULY 2000: 1999 = 3.37 BILLION (RPK) PASSENGER TRAFFIC (+28.6%); 65.6% LF LOAD FACTOR; 113.07 MILLION (FTK) FREIGHT TRAFFIC (+9.9%); 4.34 MILLION PASSENGERS (PAX) (+31.6%); 2,300 EMPLOYEES. +40 MAINTENANCE TECHNICIANS (MT) FOR TOTAL 600 (MT) EMPLOYEES.
FARNBOROUGH AIR SHOW ANNOUNCEMENT OF 10 ORDERS CRJ-200'S.
SEPTEMBER 2000: 1ST 6 MONTHS = 1.26 BILLION (RPK) (-16.2%); 43.28 MILLION (FTK) FREIGHT TRAFFIC (-10%); 1.56 MILLION PASSENGERS (PAX) (-20%).
DECEMBER 2000: LUO CHAOGENG PRESIDENT & GENERAL MANAGER REPLACES CAPTAIN LI CHANGXIN ON HIS RETIREMENT. MR LUO WAS PREVIOUSLY DEPUTY DIRECTOR OF THE (CAAC) (CAC) NORTHWEST REGION, WITH AN AIRPLANE MAINTENANCE ENGINEERING BACKGROUND.
FEBRUARY 2001: TO MERGE WITH CHINA EASTERN AIRLINES (CEA).
MARCH 2001: 1ST CHINESE DOMESTIC CODE SHARE WITH CHINA SOUTHERN AIRLINES (GUN), TO GUANGZHOU.
APRIL 2001: 2,300 EMPLOYEES.
SELECTS (GAMECO) (GUN), FOR 35-DAY "D1" STRUCTURAL INSPECTION MAINTENANCE CHECKS ON 737-300.
MANAGEMENT SIGNS UP FOR myboeingfleet.com TECHNICAL WEB SITE.
JUNE 2001: 1ST QUARTER = 626.99 MILLION (RPK) TRAFFIC, 20.7 MILLION (FTK) FREIGHT TRAFFIC, 754,000 PASSENGERS (PAX).
+57 MAINTENANCE TECHNICIANS (MT) EMPLOYEES FOR ENGINEERING DIVISION. NOW, TOTAL 650 (MT) EMPLOYEES.
JULY 2001: SIGNS BUSINESS INITIATIVE WITH CHINA EASTERN AIRLINES (CEA) AND CHINA NORTHWEST AIRLINES (CNW), INCLUDING ENGINEERING, MAINTENANCE, POOLING OF SPARES, AND GROUND HANDLING.
NOVEMBER 2001: RECEIVES 1ST 2 (OF 6) BOMBARDIER CRJ-200'S.
JANUARY 2002: 2001 = 3.12 BILLION (RPK) TRAFFIC; 90.71 MILLION (FTK) FREIGHT TRAFFIC; 3.8 MILLION PASSENGERS (PAX).
FEBRUARY 2002: GOVERNMENT FINNALY OK'S CONSOLIDATION OF CHINA'S AVIATION BY MERGER OF ITS 9 (CAAC) (CAC) CONTROLLED OPERATORS INTO 3 GROUPS: CHINA SOUTHERN AIRLINES (GUN), AIR CHINA (BEJ), & CHINA EASTERN AIRLINES (CEA), WHO HAVE 80% OF DOMESTIC MARKET: (GUN), INCLUDING CHINA NORTHERN AIRLINES (SHY) & XINJIANG AIRLINES (XIJ), WITH LARGEST FLEET OF 180 AIRPLANES, 50.1B YUAN/$6.05 BILLION ASSETS, & >34,000 EMPLOYEES; (BEJ), INCLUDING CHINA SOUTHWEST AIRLINES (XIN) & CHINA NATIONAL, WITH FLEET OF 118 AIRPLANES, 56.05 BILLION YUAN ASSETS, & >20,300 EMPLOYEES; & (CEA), INCLUDING CHINA NORTHWEST AIRLINES (CNW) & YUNNAN AIRLINES (YUN), WITH FLEET OF 118 AIRPLANES, 47.3 BILLION YUAN ASSETS, & >25,000 EMPLOYEES.
APRIL 2002: TO MANDALAY, BURMA (CRJ-200, 2/WEEK).
2001 = +$12 MILLION/+99.2 MILLION YUAN.
June 2002: To Hong Kong (daily).
"C4" structural, maintenance check contracted to Air New Zealand (ANZ) for 2 of 3 767-300's by the end of 2002. Will be done at recommended 6 year interval, instead of of 24,000 flight hours, due to Yunnan Airlines (YUN)'s relatively low utilization. Airplane is expected to have only 16,000 flight hours, by August 2002.
Merger with China Eastern Airlines (CEA) is expected to be finalized by August 2002.
4th of 6 CRJ-200 (7647, B-3070) deliveries.
July 2002: 2001 = +$11.97 million: 3.88 billion (RPK) traffic; 61.2% LF load factor; 3.80 million passengers (PAX); 103.06 million (FTK) freight traffic.
August 2002: 767-300 to Air New Zealand (ANZ) for 13 day, "C4" maintenance check. Relatively low utilization results in 72 month service interval, instead of 24,000 flight hours interval. 8 Yunnan Airlines (YUN) technical personnel will accompany the airplane.
September 2002: Eastern Air Group begins to take shape with consolidation of China Eastern Airlines (CEA) with Yunnan Airlines (YUN) and China Northwest Airlines (CNW).
October 2002: The (CAAC) (CAC) announces the formation of 6 aviation groups: Air China Group (China National Aviation Holding Company); China Eastern Airlines; China Southern; China Aviation Oil Group; China Aviation Information Group; and China Aviation Equipment Group. These groups will operate independently. The (CAC) no longer owns the state-owned assets of these groups, and will not take responsibility for their operating losses. The (CAC) cuts its economic ties with these companies, and retreats to functioning only as an industry regulator. The assets of the 3 consolidated airline groups, comprise 80% of the industry's total assets. Their strength and ability to compete internationally, has been significantly enhanced through this restructuring.
2nd 767-3WOER "C4" maintenance check completed after 22 days at Royal Brunei Airlines (RBA).
Accepts myboeingfleet.com on-line techical data.
5th CRJ-200LR delivery.
November 2002: 6th and last CRJ-200LR (7684, B-3071) delivery.
April 2003: 4,500 employees.
July 2003: 2002 = 4.01 billion (RPK) traffic (+3.3%); 61.3% LF load factor; 3.93 million passengers (PAX) (+3.5%); 96.02 million (FTK) freight traffic (+.4%).
2002 TOP WORLD AIRLINES TRAFFIC (RPK) (Billion):
114 (BNG) 4.33; 115 (FUA) 4.28L 116 (RJA) 4.21; 117 (CSA) 4.18; 118 (YUN) 3.97; 119 (VOZ) 3.92; 120 (CDF) BERLIN) 3.92; 121 (XIJ) 3.88; 122 (STG) 3.87; 123 (MCR) 3.87; 124 (TAC) 3.85.
August 2003: China Eastern Airlines (CEA) expects to conclude the integration of China Northwest Airlines (CNW) and Yunnan Airlines (YUN) by the end of 2003.
July 2004: 2,300 employees.
2003 = 3.96 billion (RPK) traffic (-1.1%); 67.1% LF load factor; 3.77 million passengers (PAX) (-4.2%); 86.93 million (FTK) freight traffic (-9.5%).
October 2004: Its name has been changed from "Yunnan Airlines" to "China Eastern Yunnan Airlines."
6 orders (April 2005) 737-700, (ILF) 10 year leased.
November 2004: ACCDT: CRJ-200LR (7697, B-3072) crashed on takeoff and crashed into a frozen lake in a nearby park near Batou Airport in western China, = all 6 (FC) - (CA)/47 passenger fatalities.
March 2005: 737-700 (ILF) leased, delivery.
June 2005: 2 737-700's deliveries included modifications for 1 hour of additional emergency oxygen supply and enhancements to the cabin pressure control system for operations to high-altitude remote airports such as Lhasa and Bangda.
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 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.
October 2006: China Eastern Yunnan Airlines (YUN) provides a scheduled domestic network serving trunk and secondary routes. Flies tourist routes from Kunming to SE Asia.
(IATA) Code: 3Q - 592. (ICAO) Code: CYH (Callsign - YUNNAN).
Parent organization/shareholders: China Eastern Airlines (CEA) (100%).
Alliances: China Eastern Airlines (CEA).
Domestic, Scheduled Destinations: Baoshan; Beihai; Beijing; Changsa; Changzhou; Chengdu; Chongqing; Dali City; Dalian; Diqing; Fuzhou; Guangzhou; Guilin; Guiyang; Haikou; Hangzhou; Harbin; Hefei; Jinan; Jinghong; Jinzhou; Kunming; Lanzhou; Lijiang City; Lincang; Luxi; Luzhou; Nanchang; Nanjing; Nanning; Ningbo; Qingdao; Shanghai; Shantou; Shenyang; Shenzhen; Shijiazhuang; Simao; Tianjin; Tunxi; Urumqi; Wenzhou; Wuhan; Xi An; Xiamen; Xuzhou; Yibin; Yichang; Zhanjiang; Zhaotong; Zhengzhou; & Zhuhai.
International, Scheduled Destinations: Bangkok; Hong Kong; Kuala Lumpur; Macau; Mandalay; Seoul; Singapore; & Vientiane.
March 2008: Hainan Airlines (HNA) is in crisis following the appeal of 6 pilots (FC) to the Haikou arbitration committee to have their labor contracts terminated. The 6 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, 1 of the 6 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 the (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 (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 3 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).
(CEA) admitted that recent "disgraceful" incidents at its Yunnan Branch Company, where 21 flights departing the airport turned around and returned, were the result of a "human factor," most likely disgruntled pilots (FC). The flights, which were scheduled to leave Kunming for Dali, Lijiang, Banla, Mangshi, Simao, and Lincang, took off, but then returned, causing significant delays at the airport. (CEA) originally cited weather as an explanation, even though other carriers operating from the provincial capital completed their flights successfully. (CEA) said the incidents are under investigation and that it already has dismissed two senior officials from the Yunnan Branch Co. The (CAC) also is investigating, and both (CEA) and the regulator noted that "severe punishments" await the responsible parties once the events become clearer. (CEA) is not alone in suffering from pilot (FC) discontent. Last month, 11 pilots (FC) from East Star Airlines (ESR) took "collective leave" due to a labor dispute with the carrier while >40 Shanghai Airlines (SHA) pilots (FC) staged a sickout citing unfair treatment. In addition, 22 Hainan Airlines (HNA) pilots (FC) have resigned since 2006 without 1st securing permission from the company.
April 2008: The (CAAC) (CAC) announced it will transfer rights to routes operated by China Eastern Airlines (CEA) in Yunnan Province to other carriers and impose a fine of CNY1.5 million in response to a March 31 - April 1 incident in which pilots (FC) returned outbound flights to Kunming. The (CAC)'s investigation concluded that the "disgraceful incident," involving 21 flights largely was the fault of disgruntled (CEA) pilots (FC). It said one of the 21 flights returned for "technical reasons" and 2 could be attributed to weather. But 9 were found to have problems with Quick Access Recorder (QAR) equipment, making it difficult for investigators to pinpoint the reason for return, and 9 others were attributable to "human factors." The (CAC) told (CEA) to upgrade its (QAR) equipment within 3 months. (CEA) has dismissed 2 senior officials from its Yunnan Branch Co and suspended 11 pilots (FC).
Later, (CEA) said it will "take the lesson seriously" as it apologized for the March 31 to April 1 flight returns, that resulted in (CAC) sanctions. "We would like to express our deep regret for any negative impact and inconvenience caused by this incident," (CEA) said in a statement. It admitted that the incident, in which 21 flights returned to Kunming shortly after takeoff, exposed management problems at its Yunnan Branch Co (YUN) and promised to reach a settlement with inconvenienced passengers. An industry insider who refused to be named, revealed that the routes (CAC) decided to transfer to other carriers are from Kunming to Xishuangbanna and Lijiang (the most profitable for (CEA)'s Yunnan Branch Company (YUN)). It also imposed a CNY1.5 million/$214,500 fine. (CEA) has played a dominant role in the Yunnan market. For example, it operates 11 of the 16 daily flights to Lijiang, with 5 other carriers each operating 1. It also operates 11 daily flights to Xishuangbanna. Industry analysts have pointed out that an increased presence on either route could help another airline establish a foothold in Yunnan, and break (CEA)'s quasi-monopoly position in the market.
February 2009: Undeterred by the operating environment that has resulted in steep losses at Chinese carriers, Shenzhen Airlines (SHZ) plans to go ahead with the launch of its Kunming Airlines (KMG) subsidiary on February 15 as it searches for a foothold in the Yunnan market. The new venture has registered capital of CNY80 million/$11.7 million, with Shenzhen holding an 80% stake. Private investor, Wang Qingmin will take the remaining 20% with a CNY16 million investment.
(KMG)'s inaugural flight will be a Kunming - Changsha - Harbin routing. It initially will operate 2 737-700s and 1 737-800 provided by (SHZ), which also will furnish cabin crew (FC)/(CA) and Maintenance, Repair & Overhaul (MRO) support.
(SHZ) has ambitious plans for Kunming. (KMG) will operate 10 airplanes by year end on 10 domestic routes, 30 to 40 airplanes by the end of next year, 80 to 100 by 2015, and 150 to 200 by 2022.
Located in SW China, Yunnan is home to numerous resorts and is a popular tourist destination. (KMG) will face competition. China Eastern Airlines (CEA), which boasts the largest share (39.5%) of the Yunnan market, plans to turn its provincial branch company into a separate subsidiary by selling shares to the Yunnan government. Hainan Airlines (HNA) signed an agreement with the provincial government last June to launch Yunnan Airlines, which will be comprised mainly of the assets of Lucky Air (LKY), which accounts for a 9.6% share of the market.
June 2009: China Eastern Airlines (CEA) has partnered with the Yunnan provincial government to launch a joint venture based on (CEA)'s Yunnan branch subsidiary (YUN) that will endeavor to build Kunming into a regional hub. (CEA) is expected to sell a stake in the branch company to the government, although it is widely speculated that (CEA) will remain the controlling shareholder.
In February, (CEA) Chairman Liu Shaoyong noted that (CEA) is looking to buttress its network with regional hubs at Kunming and Xi'an. Its Yunnan branch commands 45% of the provincial market and was profitable in the 1st quarter, although it did not disclose that figure. The new venture will face competition. Hainan Airlines (HNA) signed an agreement with the provincial government last June to launch its Yunnan Airlines. It will be comprised mainly of the assets of Lucky Air (LKY), which accounts for 9.6% of the market.
Shenzhen Airlines (SHZ) launched Kunming Airlines (KMG) on February 15 and is looking at expanding its fleet to 10 airplanes by year end operating 10 domestic routes. It hopes to be operating 30 to 40 airplanes by the end of 2010, 80 to 100 by 2015, and 150 to 200 by 2022. It currently operates two 737-700s and one 737-800 provided by Shenzhen (SHZ).
(CEA) is expected to hold 65% of its new Kunming-based joint venture with the Yunnan provincial government, with which it signed an agreement recently. The government will hold the remainder and is investing both real estate and cash. The new carrier will not fly with (CEA)'s logo nor code but will use the green logo of Yunnan Airlines, the predecessor of (CEA)'s local branch company that merged with the larger airline in 2002. It will adopt its own name and flight code.
(CEA) Chairman Liu Shaoyong shrugged off the competition the new venture will face in the Yunnan market. The government reportedly was expected to inject capital into Lucky Air (LKY), which will form the foundation of its joint venture with Hainan Airlines (HNA). Shenzhen Airlines (SHZ) subsidiary Kunming Airlines (KMG) launched in February. "We are open to market competition, as no company can monopolize the market. But our new venture will be the 'national team' of Yunnan province, which will definitely make it better positioned compared with other companies," Liu said.
(CEA)'s Yunnan branch currently operates 37 airplanes and transports approximately 6 million passengers annually. It plans to expand the new carrier's fleet to 50 airplanes next year and increase passenger boardings to 8 million in the same time frame. In addition, it is committed to boosting its share of the Yunnan market from 45% to 50% this year.
Hainan Airlines (HNA) subsidiary Lucky Air (LKY) received a CNY290 million/$42.4 million capital injection from the Yunnan provincial government. (LKY) now has registered capital of CNY906 million, with (HNA) subsidiary Grand China Airlines (GCH) the controlling stakeholder at 68%. Yunnan will hold the remainder. The parties reached an agreement last June to launch a new carrier (Yunnan Airlines) based on (LKY)'s assets. A Yunnan official said that the (LKY) name will be maintained for the time being. (LKY) held an 18% market share as of March, second to China Eastern Airlines (CEA)'s Yunnan branch (45%). (CEA) and the government announced their own joint venture. (LKY) currently operates 10 airplanes on 448 weekly flights across 24 routes. (LKY) plans to expand to 30 airplanes over the next 3 years. This marks the 3rd time (HNA) has received financial support from the government. Hainan Province injected CNY1.5 billion, while the Tianjin government put CNY200 million into Grand China Air (GCH).
737-79P (39735, B-5822), (CEA) leased in orange peacock colors.
July 2010: China Eastern Airlines (CEA) launched a Yunnan subsidiary (YUN) based on a framework agreement (CEA) signed with the Yunnan local government in May 2009. (CEA) said its initial investment will be CNY2.38 billion/$35 million to hold a 65% stake in the new entity. The Yunnan local government holds the remaining 35%. The deal still needs approval from (CEA)ís minority stakeholders. The (CEA) Board Secretary Luo Zhuping said it will be able to expand its market share in Yunnan (it now has about a 50% share) by launching the subsidiary.
August 2011: China Eastern Airlines (CEA) formally launched China Eastern Yunnan Company, a joint venture (JV) airline (YUN) set up with the Yunnan provincial government based on assets of CEA's previous branch company in Yunnan. The move aims to enhance Kunming as a (CEA) regional hub.
The (JV) airline has a registered capital of CNY3.66 billion/$570 million, in which (CEA) holds a 68% stake with an investment of CNY2.38 billion. (CEA) unveiled the (JV) last year and (YUN) received an air operating certificate (AOC) last month.
(YUN) operates a fleet of 41 airplanes comprising 3 767-300s, 22 737-700s, 11 737-300s and 5 CRJ-200s. (YUN) plans to expand its fleet to 80 airplanes by 2015 to transport 17 million passengers and 162,000 tonnes of cargo annually.
August 2014: China Eastern Yunnan Airlines ((IATA) Code: MU) (YUN) took delivery of a brand new Boeing 737-700 airplane at Kunming airport on August 29, bringing its fleet size up to 62 airplanes. The new airplane, registration number (B-5821), is the 5th 737-700 airliner delivered to (YUN) this year.
The newly-introduced airplane is the same model with other Boeing airplanes serving in (YUN). Painted with a golden peacock in the fuselage, the 737-700 airplane, as the embodiment of most advanced technology in single-aisle airplanes market, has increased its engine thrust and installed special winglets, suitable for operation at high-altitude plateau airports. Moreover, the airplane, equipped with the (RNP AR) system, can guide takeoffs and landings in poor conditions, improving safety and efficiency.
July 2015: China Eastern Yunnan Airlines (YUN) took delivery of a new 737-800 airplane at Kunming Changshui International Airport (KMG) on July 27, which is the 71st airplane for the regional carrier.
The new 737-800 (B-1792), is the 6th airplane (YUN) introduced in 2015, with +10 more jets to be delivered in the near future. (YUN) is expected to own 100 airplanes by the end of the "13th 5-year," which is bound to let it step into the medium-sized airlines.
As the largest base airline in Yunnan province, China Eastern Yunnan (YUN) is sparing no effort to build Kunming into a regional hub. In recent years, (YUN) has made phenomenal progress. It constantly optimizes the fleet structure and speeds up the introduction of new airplanes.
The arrival of the new 737-800 will strongly boost (YUN)'s transport capacity and meet the growing travel demand in summer.
September 2015: The Yunnan Airport Group, the operator of 12 airports in Southwest China's Yunnan province, posted +16.9% passenger growth for the two-month summer travel season.
According to the Yunnan Airport Group, passenger numbers rose +16.9% year on year to 9.76 million in July and August. Aircraft movements increased +7.9% to 77,385. Cargo volume amounted to 66,120 tonnes, a year-on-year growth of +10.3%.
October 2016: The Civil Aviation Administration of China (CAAC) has penalized China Eastern Yunnan Airlines (YUN) for a Boeing 737-700 landing incident at Dali Airport on September 20.
737-79P (36269, B-5442) overran the end of the runway at Dali Airport during landing on flight MU5935 from Kunming, said the (CAAC). It has classified the case as a "serious incident".
The (CAAC) the pilots (FC) involved would be penalised, and have stopped (YUN) from applying for additional services and new launches in 3 months, as well as cut its flying hours, during this period.
The aviation watchdog also encouraged (YUN) to strengthen its safety culture and organization management, to effectively control operational risks and eliminate safety hazards.
March 2018: China Southern Airlines (GUN) has set up a branch company in the SW Chinese province Yunnan, a stronghold of rival China Eastern Airlines (CEA).
8 new (GUN) domestic routes from Yunnan will be opened in March and a service to Islamabad, Pakistan, from provincial capital Kunming will begin in June. These moves by (GUN) support a government policy to use Yunnan as a hub through which to connect with the economies of neighboring countries in S and SE Asia.
The branch company was established in Kunming March 6. Branch companies are treated by authorities preferentially in the allocation of service rights and runway slots. Yunnan is also growing strongly as a domestic market for air transportation, because of its tourism attractions.
(GUN) has not said what aircraft it will assign to the branch.
In 2005, China Eastern (CEA) acquired Yunnan Airlines (YUN), giving it a stronger presence in the region. It now operates under the name China Eastern Yunnan Airlines (YUN).
Click below for photos:
YUN-737-800 - 2015-07-A.jpg
5 ORDERS 717-200, (PEB) LSD.
3 737-33A (CFM56-3C1) (2687-27453, /95 B-2955; 2690-27907, /95 B-2956; 2765-27462, /96 B-2966), (AWW) LSD. 135Y.
9 737-3WO (CFM56-3B1) (1166-23396, /85 B-2517; 1193-23397, /86 B-2518; 2040-5090, /91 B-2538; 2377-27127, /92 B-2589; 2400-27139, /93 B-2540; 2727-27522, /95 B-2958; 2919-28972, /97 B-2981; 2941-28973, /97 B-2983; 2945-29068, /97 B-2985; 2951-29069, /97 B-2986). 135Y.
1 737-341 (CFM56-3C1) (2275-26853, /92 B-2594). 135Y.
3 +3 ORDERS 737-700 (CFM56-7B) (ILF) 10 YR LSD.
15 737-700 (CFM56-7B).
4 737-7W0 (CFM56-7B22) (140-29912, /98 B-2639) (148-29913, /98 B-2940; 292-30074, /99 B-2503; 311-30075, /99 B-2502). 135Y.
9 737-79P (CFM56-7B) (29357, B-5093; 29358, B-5094; 29361, B-5095; 29362, B-5096; 29365, B-5054; 33008, B-5074; 33009, B-5084; 33045, B-5225; 33046, B-5231), (ILF) LSD.
4 737-79P (CFM56-7B22) (36269, B-5242; 36271, B-5245; 36772, B-5271; 39735, B-5822, 2014-06).
1 737-800 (CFM56-3C1) (B-1792, 2015-07.
2 737-85P (CFM56-7B27) (36769, B-5515; 36771, B-5527), 2011-11.
2 +/3 OPTIONS 767-3W0ER (RB211-524D4D) (620-28148, /96 B-2568; 627-28149, /96 B-2569; 644-28264, /97 B-5001), 28264; TO MNG. NOT (ETOPS) EQ'PD. 18C, 241Y.
0 FAIRCHILD SA-227 DC METRO 23 (DC-888B, /95), 3 RTND.
5 +4 OPTIONS BOMBARDIER CRJ-200LR (CF34-3B1) (7571, B-3013, 2001-11). 7596, B-3021. (7647, B-3070, 2002-06). 1 AT SHANGHAI FOR (CEA) OPS. 7697, B-3072; DESTROYED 2004-11 W/O. 50Y.
XUE XIAOMING, PRESIDENT/GENERAL MANAGER.
MING LIU, VICE PRESIDENT.
ZHANG GUANG YUN, VP FLIGHT OPERATIONS (2001-12).
ZHAO BAO, VP MAINTENANCE .
LIU MING, VP COMMERCIAL AFFAIRS.
YUAN JIAQU, DIRECTOR FLIGHT OPERATIONS.
ZHONG SUO GAO, FLIGHT TECHNICAL TRAINING DIRECTOR.
LI JUN MING, DIRECTOR AIRCRAFT MAINTENANCE (2002-04), (firstname.lastname@example.org).
DUAN SHU PEI, DIRECTOR AIRCRAFT MAINTENANCE ENGINEERING
QUAN ZHONG LI, DIRECTOR PERSONNEL & ADMINISTRATION.
HUANG XIAO DONG, DEPUTY DIRECTOR MAINTENANCE ENGINEERING (1996-07).
ZHANG ZONG MING, DEPUTY DIRECTOR MAINTENANCE SHOPS
ZHONG JIA QI, VICE DIRECTOR PLANNING.
DOU HAIDONG, TECHNICAL SERVICES MANAGER (2001-03) (email@example.com) (firstname.lastname@example.org).
ZHONG SUO GAO, MANAGER FLIGHT SAFETY (email@example.com).
ZHENG SHI-XIONG, MANAGER QUALITY CONTROL (QC).
GUAN PIN, MANAGER PLANNING.
S CHEN, MANAGER AIRCRAFT MAINTENANCE.
X XIE, MANAGER AIRCRAFT MAINTENANCE SHOPS.
YANG QING-LIN, CHIEF ENGINEER.
MENG SHI LONG, CHIEF TOOL & EQUIPMENT DEPT.
LI PING PING, MANAGER MATERIAL PROVISIONING
LI HUAI YONG, MANAGER FLEET TECHNICAL LIBRARY