CHINA: Air China Pilots Fired, After e-Cigarette Incident

China revoked the licences of two Air China pilots after a vaping incident in the cockpit forced an emergency descent.

A passenger flight from Hong Kong to Dalian had to drop more than 6500m due to a sudden loss of cabin pressure.

Investigators said it was caused by one of the pilots smoking an e-cigarette.

The Civil Aviation Administration of China (CAAC) will also launch a safety crackdown on the Chinese flag carrier for three months and fine the airline 50,000 yuan ($NZ10,964), China Central Television (CCTV) said on its WeChat account.

The cuts to the carrier's 737 flights amount to 5400 hours a month, it said.

The CAAC also suspended the licenses of other staff involved in the emergency incident that was linked to a co-pilot smoking in the cockpit, CCTV said.

It also ordered Air China to undertake a three-month safety review.

The mid-air drama unfolded when one of the pilots, who was vaping, tried to turn off a fan to stop his smoke reaching the passenger cabin.

Instead, he turned off the air-conditioning unit, causing a drop in the cabin's oxygen levels.

Emergency measures were triggered, and oxygen masks dropped.

The plane was forced to descend rapidly.

If a plane loses cabin pressure, the pilot has to bring the aircraft to a lower altitude to keep crew and passengers safe.

Once the crew saw that the air conditioning had been turned off, they reactivated it and brought the flight back to its normal altitude.

The plane went on to complete its flight as scheduled, and none of the 153 passengers or crew were injured.

A third pilot on board, who was not involved in the incident, had his licence revoked for six months and was banned by Air China for two years.

Chinese flight regulations prohibit all flight crew from smoking, and banned passengers from using e-cigarettes on board in 2006.

Air China shares fell as much as 1.4 percent in Hong Kong in response to the safety crackdown, before recovering slightly, against a flat Hang Seng index.

The stock is down nearly 40 percent in Shanghai so far this year, amid a falling yuan and higher oil prices.

BOCOM International analyst Geoffrey Cheng said the crackdown would likely have an impact on Air China's flight schedules, especially as it enters peak travel season, but could also prompt the airline to cut poorly performing routes.

It could have pros and cons, he said.

A Chinese aviation professor, who spoke on condition of anonymity as he was not permitted to speak to media, said the cuts appeared to only apply to Boeing 737 planes stationed at Air China's Beijing headquarters.

For a big company like Air China they can move some 737s to their companies in southwest China or Zhejiang which could lessen Air China's losses, he said.

Air China has several branch offices in places such as Inner Mongolia and Shanghai as well as number of subsidiary airlines.

It operated 269 Boeing 737s out of its 655-strong fleet at the end of December, according to its full-year report issued in March. It has 311 Airbus 320 and 321 jets.


Tourism Observer

CHINA: Hainan Airlines Introduces Flights To Edinburgh

Hainan Airlines inaugurated the first-ever direct flights between Scotland and China today with HU749, the first service between Beijing and Edinburgh.

The four weekly flights to the Scottish capital is the country’s first connection to the Far-East.

Gordon Dewar, Chief Executive of Edinburgh Airport said: This is a momentous day as we connect not only Edinburgh and Beijing for the first time, but Scotland and China too.

It is a route which has immense opportunities for our countries, from tourism and business to culture, education and more.

We know Edinburgh is second only to London for Chinese tourists and we are eager to welcome more people to our fantastic capital city, but it’s also about connecting people from Scotland to Beijing and wider China thanks to Hainan’s hub network.

Hainan is one of the world’s most prestigious airlines and we are proud to be working with them. This is something the city has worked towards for a number of years and we are delighted to see this day finally arrive.

Minister for Business, Innovation, and Energy, Paul Wheelhouse, said: Securing direct links between Scotland and China is one of our key priorities for route development.

This new direct Beijing to Edinburgh route is an exciting first chapter indirect air connectivity between Scotland and China. It will enable China and Scotland to become closer in partnership and in travel time, building upon existing strong links for business and tourism.

The Scottish Government and our agencies look forward to working with Hainan Airlines and Edinburgh Airport to make this route a great success.

Malcolm Roughead, Chief Executive of VisitScotland, said: This first direct service from China to Edinburgh represents a gear change for Scottish tourism and further cement Scotland’s reputation as a world-class destination.

As the Chinese market has grown over the years so too has the Scottish capital’s popularity with Chinese visitors and it continues to be the top destination outside of London.

Through our ongoing work with key Chinese tour operators, we have seen visitor itineraries extending over the years.

Bringing visitors from China directly into the heart of Scotland will create greater opportunities for tourism businesses right across the country, as visitors stay longer and explore further.

Paul Lewis, managing director of Scottish Development International said: We’re working hard to ensure that more Scottish companies can take advantage of trade and investment opportunities in China, while at the same time trying to attract more Chinese companies to base their European operations here.

A direct air route is a significant enabler of both these goals and we welcome Hainan Airlines’ first ever route between Edinburgh Airport and Beijing Capital International Airport.

The flight currently includes a stopover in Dublin after its arrival in Edinburgh due to excessive demand interest at that airport for Chinese flight.

On Tuesdays and Saturdays, the aircraft will arrive into Edinburgh at 0600 and will then depart at 0800 to Dublin, to which it will carry on to Beijing after departure from Dublin.

On Thursdays and Sundays, the flight arrives into Edinburgh from Dublin at 0910 before departing for Beijing at 1110.

This flight continues the carrier’s continued expansion out of the UK, having launched their first Manchester route over two years ago this month.

As the carrier is slowly receiving the licensing from the CAAC - Civil Aviation Administration of China, it is becoming a little clearer into where the carrier wants to start their expansion.

With services from Capital Airlines out of Gatwick being operated on already, they are starting to cover all areas of the UK. The other airports of interest could potentially be those such as Glasgow, Birmingham and potentially Stansted if the demand appeals to HNA.

In terms of investment, the carrier is definitely putting money into the route developments they establish.

This comes following the news that the HNA board are looking to raise over $1 billion in capital to fund certain elements of the airline, placing worries into the security of these routes in case the airline has to downsize.

However, Hainan seems to be playing the UK market very strongly and are slowly, one by one, opening up China to most of the UK and beyond.

Especially with the Dublin connection point, where they can capture some of the Irish catchment areas on top of this, thus boosting their presence into Europe as well.


Tourism Observer

Chinese Startup Airlines To Be Limited To Smaller Aircraft

Embraer Commercial Aviation CEO John Slattery believes a new rule, which initially limits Chinese startup airlines to smaller aircraft, could create opportunities for the Embraer E190.

Speaking on the sidelines of the European Regions Airline Association General Assembly in Madrid, Slattery said the Civil Aviation Administration of China (CAAC) issued a rule during the G20 meeting in early September that took immediate effect. This regulation restricts the size and number of aircraft that new air operator’s certificate (AOC) holders can operate.

“The restrictions prevent us from selling new Embraer E195s and restrict Bombardier from selling the CSeries [to Chinese startups], but our E190 is absolutely in the sweet spot of the policy. We’ve got very good penetration of the Chinese market with the E-190—it’s a recognized asset with very good support—so we’re hopeful that China will deliver a significant amount of activity for new and pre-owned aircraft,” Slattery said.

He added that there are currently around a dozen Chinese airline business plans that might result in an AOC application. “I’d be hopeful that we can capture at least half of those as Embraer customers,” he said. “We do think there will be a particular surge of activity in the Chinese market in the coming months.”

Over the 2016-35 period, Embraer is forecasting demand for 6,400 deliveries worldwide in the 70- to 130-seat segment, with 26% of that total—or 1,690 aircraft—destined for the Asia-Pacific region.

Civil Aviation Administration Of China Improves Standards For New Airlines

The Civil Aviation Administration of China (CAAC) is expected to raise the bar on approving new entrants in the domestic airline industry in light of market saturation and possible excessive competition.

The regulator is reportedly revising relevant provisions of the “Public Transport Enterprises Operation Permit Regulations,” which would disqualify more than half of new applicants. According to an industry insider, out of the dozen airlines that have submitted applications, only one or two would be able to secure approval in this year’s second half.

Earlier this year, the regulator tightened its grip on approving new entrants because of some aviation safety incidents.

Only two Guangzhou-based cargo carriers—AVIC Cargo Airlines and Longhao Air—have received approval from the regulator in the first half.

It is noteworthy the new approved entrants all have a registered capital of more than CNY100 million ($15.08 million), up from CNY10 million previously, which reflects how much the standards have been raised.

As early as 2004 CAAC began allowing privately run companies to launch carriers, which resulted in the prosperity of domestic privately run carriers, including Shanghai-based low-cost carriers Spring Airlines and Juneyao Airlines. However, to limit growth CAAC decided to bar most new domestic entrants from the market until 2010, except for cargo carriers and those that either operated China-produced aircraft or are headquartered in West China.

In 2011, the regulator began to loosen its grip on approving domestic airline entrants and opened the door for more new carriers in 2013, which enabled many airlines to spring up, mainly local carriers launched by domestic airlines in conjunction with different local governments.

CHINA: YTO Express and SF Airlines Plans More Cargo Flights to/from Beijing

China's two cargo carriers YTO Express Airlines and SF Airlines have submitted applications to the Civil Aviation Administration of China (CAAC) for operating more cargo rights to and from Beijing.

Pending final approval, YTO Express will win a new route permit for round-trip cargo service between Hangzhou and Beijing, with 14 flights weekly, according to a notice released by the aviation watchdog on February 6.

Meanwhile, SF Airlines will be granted a new route lience for 14 flights weekly on Wuxi-Beijing route, together with additional ten and six flights weekly on Beijing-Shenzhen and Beijing-Hangzhou routes.

The Air Transportation Department of CAAC is soliciting public comments on the application on February 16, 2016.

CHINA: Embraer Delivers First Legacy 500 Mid-size Business Jet To Jackie Chan

Embraer announced that Jackie Chan has become the first customer in China to take delivery of their mid-size business jet, Legacy 500.

Embraer Executive Jets President & CEO Marco Tulio Pellegrini said:

“The Legacy 500 features our best-to-date technologies and it incorporates designs that maximize passenger comfort and fuel efficiency.”

“This new aircraft, along with the Legacy 650 that we already delivered to Mr. Chan, will further facilitate his business development, as well as his humanitarian activities,” Marco Tulio Pellegrini added.

Embraer Executive Jets and Jackie Chan connection dates back to 2012, when Jackie Chan received an Embraer Legacy 650 as China’s launch customer and became Embraer’s brand ambassador.

Embraer Senior Vice President and President of Embraer China, Guan Dongyuan said:

“We feel privileged to deliver the Legacy 500 to Jackie Chan, who is not only a world-renowned star, business elite and philanthropist, but also Embraer’s old partner, loyal customer and brand ambassador.”

“I believe Jackie Chan’s choice reflects the changing mindset among Chinese customers that mid-size executive jets can fulfill most of their business missions with higher efficiency and greater flexibility.”

“I’m so thrilled to receive this Legacy 500, a state-of-art executive jet,” said Jackie Chan.

“In the past few years, my Legacy 650 has brought me fantastic traveling experiences and great convenience, allowing me to do more acting and philanthropic works around the world.”

“I’m sure that the performance of the new Legacy 500 will again exceed my expectations, and become a comfortable mobile home and office for me.”

Embraer Legacy 500 was granted Type Certificate Validation from the Civil Aviation Administration of China (CAAC) in July 2015.

The 12-passenger Embraer Legacy 500 is the fastest jet in its class, delivering a high-speed cruise of Mach 0.82, excellent runway performance, and US coast-to-coast range for eight.

Embraer Legacy 500 is the first mid-size business jet with digital flight control system, based on fly-by-wire technology, featuring side-sticks.

Rockwell Collins Pro Line Fusion avionics suite on four 15-inch high-resolution LCD displays allows graphical flight planning, and has options like paperless operations capability, auto brakes, and the E2VS (Embraer Enhanced Vision System), which includes a Head-up Display (HUD) with the Enhanced Vision System (EVS).

Embraer Legacy 500 has the best-in-class 6-foot flat-floor cabin, which is comparable to those of some aircraft in the super mid-size category.

The in-flight entertainment system of Embraer Legacy 500 consists of a high-definition video system, surround sound, multiple audio and video input options, a cabin management system, and three options for voice communications and connectivity.

Embraer Legacy 500 is capable of flying at 45,000 feet and is powered by two Honeywell HTF7500E engines, the greenest in their class. Taking off from airfields as short as 4,084 feet, Embraer Legacy 500 has a range of 3,125 nautical miles (5,788 kilometers) with four passengers, including NBAA IFR fuel reserves.

Embraer is one of the world’s leading executive jet manufacturers, having entered the business aviation market in 2000 with the Legacy jet, which led to the launch of Embraer Executive Jets in 2005.

Embraer Executive Jets global fleet exceeds 930 aircraft, which are in operation in more than 60 countries.

CHINA: Capital Airlines Applies For Australia Routes

Capital Airlines (China)
Type Scheduled Carrier
Base Beijing Capital
Aircraft 59
Destinations 64
Routes 162
Daily Flights 165

Capital Airlines (China) (JD, Beijing Capital) has applied to the Civil Aviation Administration of China (CAAC) for permission to start scheduled passenger flights to Australia during Summer 2016.

In its application, the Hainan Airlines (HU, Haikou) subsidiary said it was looking to connect Qingdao with Melbourne Tullamarine from July 1 of next year using its sole A330-200. It did not mention what frequencies the airline had requested.

Capital Airlines began long haul operations earlier this year with flights from Beijing Capital and Hangzhou to Copenhagen Kastrup. Other routes under consideration include a possible Hangzhou-Madrid Barajas which could launch in December of this year.

CHINA: Tianjin Airlines Applies For Long Flights From Chongqing To Vancouver

Tianjin Airlines
Type Scheduled Carrier
Base Tianjin
Aircraft 91
Destinations 101
Routes 257
Daily Flights 409

Tianjin Airlines (GS, Tianjin) has applied to the Civil Aviation Administration of China (CAAC) for permission to begin longhaul flights from Chongqing to Vancouver Int'l, Canada via Tianjin in June next year.

The carrier plans to operate the route 4x weekly using A330 plane. Should it secure the official greenlight, it would become the second Hainan Airlines (HU, Haikou) subsidiary to operate intercontinental services after Capital Airlines (China) (JD, Beijing Capital) which launched flights to Europe this past summer.

Tianjin Airlines currently operates a fleet of eighteen A320-200s, fifty EMB-190s, and twenty-two ERJ-145s on flights across China as well as to Japan, Thailand, South Korea, Russia, and Taiwan.

CHINA: Colorful Guizhou Airlines Orders GE CF34-Powered EMBRAER E190s

The newly established Colorful Guizhou Airlines in China announced an order of seventeen GE's CF34-10E-powered EMBRAER E190 aircraft, including 7 firm orders and 10 options.

The newly established Colorful Guizhou Airlines in China announced an order of seventeen GE's CF34-10E-powered EMBRAER E190 aircraft, including 7 firm orders and 10 options. The engine order is valued at $284 million (USD) list price. Aircraft delivery begins by end of 2015.

"We are pleased that the new started Colorful Guizhou placed the order of CF34-10E-powered E190 aircraft," said Chaker Chahrour, vice president and general manager of Global Sales & Marketing at GE Aviation. "CF34 engines have been performing extremely well since entering service in 2005. I'm sure its performance and high reliability will earn the trust from Colorful Guizhou and contribute to their early operations."

Colorful Guizhou Airlines is based in Guiyang, capital of Guizhou Province. The airline is jointly funded by Guizhou Industrial Investment (Group) Co., Ltd. and Weining County Construction Investment (Group) Co., Ltd. , and the preparation for operation was approved by Civil Aviation Administration of China CAAC on June 2, 2015. The airline will operate on trunk and regional routes for passenger and freighter service.

The airline was established in 1991 . It is owned by China Southern Airlines (60%) and Guizhou Xianfei Industrial (40%).

As of September 2014 the Guizhou Airlines fleet included

2 Boeing 737-700
2 Xian Y-7-100

Guizhou Airlines previously operated 1 Boeing 737-300 aircraft from July 1998 to March 2004, when it was returned to China Southern Airlines.

CHINA: China Southern Airlines Executive Vice-President Removed Over Bribery Probe

China Southern Airlines said on Friday evening that its executive vice-president Liu Qian had been removed from his position while a corruption investigation against him is under way, after the South China Morning Post reported on Monday that Liu had been taken away.

"A case on file for investigation against Liu Qian has been placed due to the suspicion of bribery crime. According to the relevant laws and regulation and the articles of association of the company, all eleven directors of the board considered and unanimously approved that Liu Qian be removed as the executive vice president of the company. The above matter does not affect the ordinary operation of the company," China Southern said in a notice to the Hong Kong stock exchange.

Liu, who was overseeing operations, is the fifth senior executive to fall at China's largest airline since a graft probe began late last year. In January the company announced four senior executives – chief financial officer Xu Jiebo and deputy managers Chen Gang, Zhou Yuehai and Tian Xiaodong – were removed and detained for “job-related crimes”, a euphemism for corruption.

Liu, 52, a veteran pilot, joined the airline in 2004 from the Civil Aviation Administration of China (CAAC) according to China Southern’s website. He received remuneration of 1.397 million yuan last year according to the company’s annual report, making him the highest-paid manager.

In April, Liu received a “serious warning” from the party and an administrative sanction for playing golf on public funds, while Zhang Zhong and Lin Qingtong, two managers at China Southern's Zhuhai Flight Training Centre, were also warned and made to return the funds, according to a notice on the website of the Central Commission for Discipline Inspection (CCDI). But it is understood Liu’s job had not been affected by the warning and he had been performing his role since April.

China’s booming aviation industry is among the latest targets of Communist Party graft busters who have been examining state-owned enterprises and government bodies across the mainland. The probe into the airline sector started with a visit to China Southern by the CCDI.

CAAC, Air China and China Eastern Airlines were among copmpanies visited by the CCDI in the latest round of inspections that started in July. At least three CAAC officials have since been taken away on suspicion of corruption according to mainland media.

Beijing Capital Airport said in a notice to the Hong Kong stock exchange on September 17 that its general manager, Shi Boli, had resigned from his post and all directorships at the company, after media reports emerged that Shi, a former CAAC official, had also been taken away for investigation.