Latest news with #CAAC
Asia Times
20 hours ago
- Business
- Asia Times
Chinese state-owned airlines join price war in national mission
Chinese state-owned airlines have joined an intensifying price war, although unwillingly, amid challenges including local passengers' weakening spending power and rising market competition. Air China, Southern Airlines and Eastern Airlines have been facing huge losses for five years since the Covid-19 pandemic broke out in early 2020. Although China canceled all epidemic rules in early 2023, the three firms still recorded net losses in the past two years. They carried more passengers last year than in 2023, but had to lower air ticket prices due to rising competition from budget airlines and China State Railway Group, the country's high-speed train operator. The price war is intensifying this year. Many Chinese airlines now offer domestic round-trip tickets at about 200 to 300 yuan (US$28 to US$42), as it is a low season before the summer holidays. Round-trip tickets to remote cities are 80- 90% off, while those to key cities like Beijing are 40-50% off. Budget airlines such as Spring Airlines and Juneyao Air are growing fast in this price war. a unit of the People's Daily, reported in late May that Chinese airlines have started offering significant discounts to customers. For example, a ticket for a round trip between Chengdu and Kunming costs only 222 yuan, and between Chengdu and Haikou, it costs 237 yuan. Kunming and Haikou are famous for their natural attractions. A Chongqing-based writer said air tickets departing from Chengdu are about 70% off on average from the high season. He said a Beijing-Sanya round trip ticket is only 230 yuan, down from 2,000 yuan during the Spring Festival in late January. He said the competition intensifies as Chinese airlines keep opening new routes this year. Citing Civil Aviation Administration of China (CAAC) data, Xinhua reported in March that 38 airlines will open 640 new domestic flight routes this year, connecting key cities such as Chongqing, Changsha and Tianjin with tourism cities in Xinjiang, Inner Mongolia, Guizhou, Sichuan and Yunnan provinces. The CAAC also allowed 193 local and foreign airlines to add 22,946 new international passenger and cargo flights per week in 2025, or 33% more than in the same period last year. These new routes cover 78 foreign countries, 57 along the Belt and Road. 'Do you think the three state-owned airlines don't want to make a profit?' a Shandong-based columnist called Xiao Song says in an article. 'They have their difficulties.' 'Despite losing money, some routes had to be launched for political reasons, such as those to Xinjiang and Tibet, and those to African and South American countries,' he said. He added that budget airlines and state-owned airlines operate their businesses differently. For example: Spring Airlines targets low-cost tourists who travel to remote cities, while state-owned airlines mainly compete in key cities. Juneyao Airlines offers one-day trips for businesspeople at prices lower than those of the high-speed railway. Budget airlines mainly use Airbus A320, which can fly up to 12 hours per day, compared with state-owned airlines' 10 hours. State-owned airlines deploy domestically some of their long-range Boeing 787 planes, which burn more fuel than narrow-body aircraft. State-owned airlines operate less efficiently than private firms. He said these are reasons why budget airlines can make a profit and pay their pilots 15,000 yuan per 90 flight hours, while state-owned airlines lose money and can only offer their pilots 10,000 yuan. He said state-owned airlines now realize these problems and try to provide more low-cost packages. In 2024, the top seven Chinese airlines, including state-owned and private ones, recorded combined revenues of 587 billion yuan, up 13.6%. Spring Airlines was the most profitable, with a net profit of 2.27 billion yuan. In fact, Air China, Eastern Airlines, and Southern Airlines successfully narrowed their net or before-tax losses last year from 2023. The number of passengers carried was 155 million (+23.8%) for Air China, 141 million (+21.6%) for Eastern Airlines, and 165 million (+16%) for Southern Airlines. According to the CAAC, the total number of flight passengers grew 5.8% to 246.8 million in the first four months of 2025 compared with last year. Currently, the central government does not intend to stop the price war or reduce competition in the airline industry. 'The decline in air ticket prices is good news for the tourism market as it can effectively boost the number of tourists and create growth for related industries such as hotels, catering, transportation and retail,' a Yunnan-based writer says in an article. She thinks the trend will also help diversify the tourism market, as new and small tourism sites can emerge. However, Hsieh Chin-ho, a Taiwanese commentator, said the falling prices of air tickets and hotels will worsen China's deflationary problem, which was caused by the burst of the country's property bubbles several years ago. Hsieh said China's consumer price index (CPI) decreased by 0.1% year-on-year in May, and its producer price index (PPI) dropped by 3.3% year-on-year, showing weak domestic consumption. He said a vicious cycle created by weakening consumption and falling property prices could further drag down the Chinese economy – resulting in a lost decade of slow or negative GDP growth, such as was experienced by Japan from the 1990s to the 2010s. Read: China's fast-growing high-speed railway network faces reality
The Star
13-06-2025
- Business
- The Star
China approves world's biggest amphibious plane, AG600, for mass production
China's home-grown AG600, the world's largest amphibious aircraft, has been given the green light for mass production, marking a step forward in building an independent and globally competitive aviation industry. The Civil Aviation Administration of China (CAAC) certified the plane on Wednesday, confirming that its developer, the state-owned Aviation Industry Corporation of China (Avic), has established a reliable system to consistently produce aircraft that meet safety standards, according to state broadcaster CCTV. Avic said the approval was a milestone towards a 'more high-end and standardised' civil aviation manufacturing sector, and that it 'strengthened China's ability to independently build a complete civil aviation ecosystem', CCTV reported. The development is part of China's broader push to build a self-reliant civil aviation industry and position itself as a major player in the global sector. The goal has gained urgency in light of the United States' recent technology curbs, including restrictions on jet engine exports. The AG600 is one of three large aircraft developed domestically, alongside the Y-20 strategic transport plane and the C919 narrowbody airliner – both in active service. China developed the AG600 to meet urgent needs in emergency rescue and natural disaster prevention and control, state media previously reported. With a maximum take-off weight of 60 tonnes and a practical range of 4,500 kilometres, the aircraft can carry up to 12 tonnes of water for firefighting missions. The AG600's development involved hundreds of supporting enterprises and tens of thousands of components, underscoring China's ability to coordinate the design and manufacturing of large specialised aircraft, as well as managing their complex supply chains, according to state news agency Xinhua. The project also provided 'replicable management experience and technical standards for future domestically developed aircraft', the report added. The AG600 entered batch production and final assembly in July last year, with the CAAC issuing a type certificate – confirming its design meets airworthiness standards – in April. Avic now plans to expand the AG600 product line and strengthen the country's aviation-based emergency response capabilities, according to Xinhua. - SOUTH CHINA MORNING POST
&w=3840&q=100)
Business Standard
12-06-2025
- Business
- Business Standard
China clears world's largest amphibious aircraft AG600 for production
China's domestically developed AG600, the world's largest amphibious aircraft, has received approval for mass production. This marks a major step forward in the country's aim to build a self-reliant and competitive aviation industry, the South China Morning Post reported. On Wednesday, the Civil Aviation Administration of China (CAAC) certified the AG600, confirming that its developer, the state-owned Aviation Industry Corporation of China (Avic), has a dependable production system in place. According to state broadcaster CCTV, this means Avic can now consistently manufacture aircraft that meet national safety standards. Avic described the approval as a major breakthrough in advancing China's civil aviation sector. The certification would help create a 'more high-end and standardised' industry and 'strengthened China's ability to independently build a complete civil aviation ecosystem", CCTV reported. A push for aviation independence The AG600's clearance comes at a time when China is focused on building its own aviation capabilities. The government has been working to reduce reliance on foreign technology, especially after the United States imposed export restrictions, including limits on jet engine supplies. Designed for rescue and firefighting China created the AG600 to support emergency rescue missions and natural disaster management. State media have reported that the aircraft was designed with firefighting and relief operations in mind. The aircraft can carry up to 12 tonnes of water, with a maximum take-off weight of 60 tonnes. It has a flying range of up to 4,500 km, making it ideal for wide-area operations. According to state news agency Xinhua, the AG600 project involved hundreds of companies and tens of thousands of components. This highlights China's ability to manage large-scale, complex aviation programmes and coordinate extensive supply chains. Xinhua also noted that the aircraft's development has helped China create 'replicable management experience and technical standards for future domestically developed aircraft'. Production milestones and future plans The AG600 moved into final assembly and batch production in July last year. In April this year, the aircraft received its type certificate from CAAC, confirming that its design meets the required airworthiness standards. Looking ahead, Avic plans to expand the AG600 product line. It also aims to boost China's aviation-based emergency response systems, Xinhua reported.
South China Morning Post
12-06-2025
- Business
- South China Morning Post
China approves world's biggest amphibious plane, AG600, for mass production
China's home-grown AG600, the world's largest amphibious aircraft, has been given the green light for mass production, marking a step forward in building an independent and globally competitive aviation industry. Advertisement The Civil Aviation Administration of China (CAAC) certified the plane on Wednesday, confirming that its developer, the state-owned Aviation Industry Corporation of China (Avic), has established a reliable system to consistently produce aircraft that meet safety standards, according to state broadcaster CCTV. Avic said the approval was a milestone towards a 'more high-end and standardised' civil aviation manufacturing sector, and that it 'strengthened China's ability to independently build a complete civil aviation ecosystem', CCTV reported. The development is part of China's broader push to build a self-reliant civil aviation industry and position itself as a major player in the global sector. The goal has gained urgency in light of the United States' recent technology curbs, including restrictions on jet engine exports. The AG600 is one of three large aircraft developed domestically, alongside the Y-20 strategic transport plane and the C919 narrowbody airliner – both in active service. China developed the AG600 to meet urgent needs in emergency rescue and natural disaster prevention and control, state media previously reported.
Al Arabiya
09-06-2025
- Business
- Al Arabiya
Boeing plane lands back in China for delivery as tariff war eases
A new Boeing 737 MAX landed back in China on Monday, flight tracking data showed, a sign the US planemaker was resuming deliveries to Chinese customers as Beijing and Washington ease their tariff war. Boeing, which halted deliveries of new planes to China in April as the world's two largest economies ramped up tariffs on each other, said at the end of May deliveries would resume in June after the tariffs were temporarily scaled back for 90 days. The plane, painted in the livery of Xiamen Airlines, landed at Boeing's Zhoushan completion center near China's commercial hub of Shanghai, after leaving Seattle on Saturday, and halting to refuel in Hawaii and Guam as it crossed the Pacific. Data from tracking app Flightradar24 shows Boeing had originally ferried the craft to Zhoushan in March, before its return to the United States in mid-April, when Chinese airlines stopped taking new Boeing aircraft. Boeing, Xiamen Airlines and regulator the Civil Aviation Authority of China (CAAC) did not immediately respond to requests for comment. China represents about 10 percent of Boeing's commercial backlog and is an important and growing aviation market. Representatives of China and the United States will meet in London on Monday to discuss a trade deal. At least three 737 MAX jets were repatriated by Boeing to the United States in April from Zhoushan, where they were to receive final touches before delivery to Chinese carriers. The first to return was the same one that landed on Monday. Boeing has previously said customers in China would not take delivery of new planes due to tariffs, and it was looking to resell potentially dozens of aircraft. However, the planemaker had not sent the planes elsewhere, despite wanting to cut inventory. Beijing has not commented on why Boeing deliveries stopped, but said Chinese airlines and Boeing had been severely affected by US-imposed tariffs. In April, Boeing said it had planned for 50 jets to go to Chinese carriers during the rest of the year, with 41 in production or pre-built.
