Private aviation or Linda reshuffle stage

[May Point Network] On March 22, Air China (hereinafter referred to as "Air China") acquired 51% of Shenzhen Airlines (hereinafter referred to as "Shenzhen Airlines") and officially became the largest shareholder of Shenzhen Airlines, which is following Tianjin Datian Group. ..

[Maidian.com] On March 22, Air China (hereinafter referred to as "Air China") acquired 51% of Shenzhen Airlines (hereinafter referred to as "Shenzhen Airlines") and officially became the largest shareholder of Shenzhen Airlines. This was acquired by Tianjin Datian Group. Okay Airways and Sichuan Airlines Group (hereinafter referred to as “Chonghang Airlines”) acquired the example of Eagle Airways Limited (hereinafter referred to as “Eagle Air”) and a private airline was acquired by state-owned airlines. Yuan Yi, an Alibaba Consulting Industry analyst, told the China United Daily News that the future aviation industry will continue to face a major reshuffle situation, and privately-owned airlines (hereinafter referred to as “civil aviation” companies that are not well managed will be faster. Eliminated out.

Private aviation ills highlight

In March 2005, with the promulgation of the "Domestic Investment Civil Aviation Regulations (Trial)" issued by the Civil Aviation Administration of China (hereinafter referred to as "the Civil Aviation Authority"), the nerves of private capital began to be ignited. In the first 11 months of 2005 alone, six private airlines in China were eligible for construction. Later, more private airlines gradually set sail, but with the financial crisis, some private airlines gradually fell.

According to historical records, Air China’s acquisition of Shenzhen Airlines, Tianjin Datian Group’s acquisition of Okay Airways, and Sichuan Airlines’ acquisition of Eagle Airways, etc., with the large-scale collapse of private airlines, private airlines struggling in the quagmire of losses seem to have found a road to salvation – nationalization.

“Private airlines are looking for new investors, often focusing on state-owned airlines,” said Yuan Yi, an Alibaba consultant in tourism. This also reflects a common appeal of private aviation - relying on external investors to save themselves and get out of trouble.

Civil aviation has only a five-year life in China. With the gradual opening up of tourism in 2004, civil aviation airlines have been enjoying the sweetness. However, since 2008, under the impact of the financial crisis, civil aviation enterprises have experienced collective losses. "No private airlines dare to say that they are profitable, and no one dares to say that they are not short of money." An airline executive who did not want to be named told reporters.

It seems that the lack of funds has become one of the most important and non-negligible issues for civil aviation. According to Air China, in 2008, Shenzhen Airlines lost 440 million yuan. "Light is a high amount of rental fees, maintenance costs, so many private airlines are heavily in debt." Yuan Yi said.

According to the airline's financial Report published by the International Air Transport Association, the net loss of more than 230 airlines registered in the International Air Transport Association in 2008 was about US$5 billion. The annual market value of airlines “evaporated” more than half of the previous year. "In 2008, almost all private airlines in China suffered collective losses," Yuan Yi said. It is difficult for private airlines to lend to banks and no government subsidies, and it is difficult to compete with state-owned aviation in terms of funds.

In addition, Yuan Yi said that the domineering of private aviation and the collective dilemma encountered by the private aviation industry are not unrelated. Although the Civil Aviation Administration allows private airlines to set up and participate in competition, it has been strict in the approval of routes. The three “Golden Triangles” in Beijing, Shanghai and Guangzhou are only held in the hands of established state-owned airlines, and private airlines simply cannot apply. Can fly a small number of regional flights.

The external survival pressure and the lack of internal funds make the private aviation collective “gliding”.

The aviation industry faces challenges

Although there are private aviation mourning the wild, but there are also companies that have tasted the sweetness in this air cake's rushing action, Spring Airlines is a best example.

According to public information, Spring Airlines, which was inaugurated in 2005, is called “civilian aviation”. It rises in the global financial crisis with its cheap concept and differentiated service management.

Spring Airlines, which has 16 Airbus 320 large passenger aircraft, transported 4.3 million passengers in 2009, an increase of 46% over the previous year; operating income was 1.99 billion yuan, an increase of 2.7%; profit of 158 million yuan, It has an increase of 524% and an average passenger load factor of 95%.

"Spring and Autumn Airlines' debt ratio has remained below 50%, and it has never owed a penny to suppliers such as airports and jet fuel." Today, if private airlines dare to throw such a hard state, I am afraid that only Wang Zhenghua will be alone.

“Spring and Autumn have been immersed in the tourism industry for many years, and the development of the tourism industry has been very successful, and the parent company has sufficient funds. At the same time, it has occupied the geographical advantage of Shanghai. It has a good time when it was established. The talent reserve is also good. This is the reason for their survival.” Yuan Yi said.

Despite this, Spring Airlines, like other private airlines, did not occupy a congenital position in the battle with state aviation.

A few days ago, the Civil Aviation Administration of East China stated that in the initial stage of the Shanghai Hongqiao Airport Terminal 2, the airlines implemented a special policy of unconditional signing. The major state-owned airlines refused to accept the Spring Airlines passengers on the grounds that they had no signing agreement with Spring Airlines. "This is also a microcosm of the fierce competition between state-owned and private aviation." Yuan Yi said.

In addition, the operation of inter-city high-speed rail has also brought a heavy stick to private aviation, bringing unprecedented pressure to regional aviation in particular.

Under the influence of Zhengxi High Speed ​​Rail, all flights on the "Zhengzhou-Xi'an" route will be grounded. "High-speed railway has obvious advantages over regional aviation in terms of price, time cost, efficiency and convenience," said Yuan Yi.

"From the history of world transportation development, there is a process between high-speed rail and regional aviation, from the beginning of complete competition, and finally from competition to cooperation. If high-speed rail, aviation, regional aviation, international aviation form a comparison The relationship of good competition and cooperation is an opportunity for regional aviation," said Ma Guangyuan, an economic observer of China Voice. Despite the difficult survival of private aviation companies, Yuan Yi expressed optimism about the future.

"The key now is how the aviation industry can use its own advantages to respond to the competitive situation and change its business operation mode to make positioning adjustments." In addition, she said that private aviation should grasp the market with its own flexibility and other characteristics. “The future industry reshuffle is affirmative, but it is also a good opportunity for powerful private airlines.” (China United Daily News)

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