Hong Kong-listed aviation holding firm China National Aviation Company (CNAC), the main shareholder in Dragonair, is expanding its investment base by buying Air Macau from its parent.
CNAC, which is controlled by Beijing-based China National Aviation Corporation, agreed to acquire the 51% of fast-growing Air Macau in a deal that primarily covers the transfer of property assets. It will leave CNAC with control of two fast-growing regional airlines in the Special Administrative Regions of Hong Kong and Macau, the other being Dragonair in Hong Kong. Both carriers operate extensive services to China with fleets that are primarily made up of Airbus aircraft.
CNAC already holds 43.3% of Dragonair, making it the largest single shareholder. Although Dragonair suffered a third fall in profits in 2001, mainly down to delays in securing additional rights to operate between Hong Kong and Taiwan - an issue that has not yet been settled - CNAC has made no secret that it eventually wants to increase its stake.
Air Macau now operates passenger services to 13 Asian destinations including nine in mainland China. It will add four more passenger routes and additional aircraft this year. New services are planned to Chongqing, Zhangjiajie and Xian in China, as well as Singapore. Air Macau also plans to launch dedicated cargo services this year to Taipei in Taiwan, a destination it already serves with passenger aircraft. Air Macau began operating in 1995 as the first airline in Macau, which late in 1999 became a Special Administrative Region of China. Its fleet is made up of five Airbus A321s, three Airbus A320s and one Boeing 757.
The carrier is scheduled to take delivery of two new Airbus A319s in June and August this year, followed by three more Airbus narrowbodies early next year. It makes most of its money from carrying passengers between Taiwan and China via its home base. China considers Taiwan a renegade province and there are no non-stop flights between the two sides, forcing transit stops in third points, usually Hong Kong or Macau.
Source: Airline Business
