Hainan Airlines has launched its first long-haul services, to the Hungarian capital Budapest, and is seeking US operating rights as part of its long-standing goal to become a major international player.
Hainan Airlines, which is based at Haikou on the southern island province of Hainan, launched thrice-weekly Beijing-Budapest services early in August, exercising rights granted early this year by the Civil Aviation Administration of China (CAAC). Fellow "independent" Shanghai Airlines was at the same time given rights to serve points in Germany and has said it hopes to launch passenger or cargo services to an unspecified destination in the country later this year.
The CAAC's award of European operating rights to Hainan and Shanghai represented the first time the regulator gave permission for long-haul services to airlines not linked to either Air China, China Eastern or China Southern Airlines, which are controlled by the central government.
This was seen as a "coming of age" of sorts for the two independent carriers, which have now firmly established themselves as the fourth and fifth largest airline groupings in the country. Both have extensive domestic networks but only limited international links serving destinations within Asia, however, and both have said they plan to progressively expand their international operations in the years ahead.
Hainan appears most aggressive, having now applied to the CAAC to be designated as a carrier for US services, taking advantage of rights made available from a recent expansion of the China-USA air services agreement. CAAC deputy director general of international affairs and co-operation Wu Zhou Hong told Air Transport Intelligence, the sister online service to Airline Business, that Hainan has applied for designation so it can serve New York Newark from Beijing and that its paperwork is likely to be approved.
The new China-USA air services accord allows for the number of designated airlines from each side to increase to nine from four by 2010. The four Chinese airlines currently designated for US services are Air China, China Eastern, China Southern and China Eastern subsidiary China Cargo Airlines. Hainan several years ago sought designation for US services when the fourth became available but it lost out to China Cargo.
Source: Airline Business
