David Fullbrook/SINGAPORE
China's Shandong Airlines is to expand its passenger fleet with 10 Boeing 737-800s and more Bombardier CRJs, and move into cargo services this year with two 737 freighters.
Shandong, based in Jinan near Shanghai, is seeking government approval to buy or lease 10737-800s subject to market conditions.
Converting 10 options for Bombardier CRJ-700s into firm orders also remains subject to State Development Planning Commission approval, the airline says.
This is thought to be forthcoming as the government is pushing development of regional airline services. Shandong is already taking delivery of CRJ200s from a five-aircraft order with Bombardier and will lease two more from General Electric Capital Aviation Services (GECAS).
Fast-growing Shandong also intends to enter the cargo market by leasing two 737Fs from GECAS as part of an expansion plotted in its 2001 development plan. The airline sees cargo services as an important new profit stream.
China's dedicated air cargo services market is considered underdeveloped. There is only one all-cargo airline, China Cargo Airlines (70%-owned by China Eastern Airlines), and a handful of freighters.
As Shandong is independent of direct Beijing control, it is not subject to the Civil Aviation Administration of China's directive that state-owned airlines be merged into three groups led by Air China, China Eastern Airlines and China Southern Airlines.
It is, however, one of a number of smaller carriers seeking to expand through mergers of their own.
Source: Flight International
