In response to China's worsening markets, Beijing will approve no more aircraft orders for China's airlines, says Liu Wanming, planning division chief for the Civil Aviation Administration of China (CAAC)
Liu stresses that the CAAC's freeze does not affect existing orders, but several carriers are already trying to defer delivery of ordered aircraft. China Eastern has persuaded Airbus to stretch delivery of 10 A320s so that it can limit capacity growth to 10% annually between now and 2000. China Northern reportedly is also trying to slide delivery of an A321. China Southern has deferred no deliveries, but elected in the first half of this year not to renew three operating leases. It plans early termination of two more leases, and hopes to outlease several other jets.
China's airlines lost ´1 billion ($120 million) in the first half of this year due to the country's slower economic growth, Asia's malaise on foreign traffic as well as the impact of fare discounting, which the CAAC has since restricted. Hainan, Shenzhen, and Sichuan Airlines were the only Chinese carriers to show first half profits, and they are all domestic airlines that rely less on overseas markets.
Source: Airline Business
