News Content
Plans underway to reform Air China's freight unit
AIR China, is currently drawing up reform plans for its freight logistics business to meet demands from the central government, a senior executive at the state-owned airline said.
The nation has prioritised implementing mixed-ownership reforms to revamp the country's bloated and debt-ridden state sector. The reforms envision private capital investment in firms run directly by the central government, Reuters reported.
"We have set up a special team to come up with a plan," Sun Yu, deputy general manager of strategy and development at the carrier said.
Air China received the green light from Beijing in April to push ahead with mixed-ownership reforms. Hong Kong's Cathay Pacific Airways, in which Air China holds a cross-shareholding, owns a 49 per cent stake in its cargo subsidiary.
China's three largest carriers are facing declining yields on international routes due to their capacity expansion, competition and higher costs, although resurgence in air cargo demand is bolstering earnings at Asian airlines.
"The market is there but its growth has not yet caught up to that of capacity, especially in Australia and the United States," said Luo Yong, managing director of the carrier's marketing department.
He said it was likely that passenger traffic and ticket prices on domestic routes would continue growing in the second half of the year, but the company would consider different strategies for various overseas regions and routes.
"We hope that we can maintain reasonable price levels on international routes," he said.
The nation has prioritised implementing mixed-ownership reforms to revamp the country's bloated and debt-ridden state sector. The reforms envision private capital investment in firms run directly by the central government, Reuters reported.
"We have set up a special team to come up with a plan," Sun Yu, deputy general manager of strategy and development at the carrier said.
Air China received the green light from Beijing in April to push ahead with mixed-ownership reforms. Hong Kong's Cathay Pacific Airways, in which Air China holds a cross-shareholding, owns a 49 per cent stake in its cargo subsidiary.
China's three largest carriers are facing declining yields on international routes due to their capacity expansion, competition and higher costs, although resurgence in air cargo demand is bolstering earnings at Asian airlines.
"The market is there but its growth has not yet caught up to that of capacity, especially in Australia and the United States," said Luo Yong, managing director of the carrier's marketing department.
He said it was likely that passenger traffic and ticket prices on domestic routes would continue growing in the second half of the year, but the company would consider different strategies for various overseas regions and routes.
"We hope that we can maintain reasonable price levels on international routes," he said.
Latest News
- For the first time, tianjin Port realized the whole process of dock operati...
- From January to August, piracy incidents in Asia increased by 38%!The situa...
- Quasi-conference TSA closes as role redundant in mega merger world
- Singapore says TPP, born again as CPTPP, is now headed for adoption
- Antwerp posts 5th record year with boxes up 4.3pc to 10 million TEU
- Savannah lifts record 4 million TEU in '17 as it deepens port
