NICHOLAS IONIDES SINGAPORE
Hainan Airlines is seeking to establish itself as China's fourth largest carrier once it has completed a sweeping consolidation exercise. The airline is starting its expansion by making a move into the international market.
The carrier will launch international services with thrice-weekly flights to Seoul, South Korea, using Boeing 737-800s. Services will operate between Sanya on Hainan Island and Seoul's Incheon International Airport.
Hainan only launched domestic services in the early 1990s but has expanded rapidly and operates an extensive fleet of 737s and Fairchild Dornier 328JETs. Government approval for international services was secured in 1999. Hainan has since been carrying out market studies and considering the addition of widebody aircraft. It recently agreed to order up to 10 Boeing 767-300ERs, which start arriving next year.
Hainan, which includes a group led by US financier George Soros as a key shareholder, plans to operate its widebodies to Seoul, and elsewhere in Asia. It has also sought approval to be designated the fourth Chinese carrier to operate to the USA, although US rights are considered unlikely for at least a few years yet.
The carrier is publicly saying it wants to establish itself as China's fourth largest carrier after majors Air China, China Southern and China Eastern Airlines. The three main airlines are expanding as a result of a government-ordered consolidation where they will take over seven other state-controlled airlines during the next year.
Second and third-tier carriers are also being urged to consolidate, and Hainan has already taken over two smaller players and is working to acquire a third. Other carriers are vying to become the country's fourth major airline grouping including independents Shanghai and Shandong Airlines.
Source: Airline Business
