Connect with us

Airline Operation

The Battle For International Routes At Beijing’s New Daxing Airport

Published

on

Restrictions on resources and policies have been the biggest obstacle to most of China’s airlines, entering Beijing, one of China’s most attractive aviation hubs. However, with the completion of Daxing International Airport, the resource restrictions are obviously no longer a major problem. In order to increase the volume of the new airport as soon as possible, the industry regulators also encourage airlines to adopt a series of new policies in air resource allocation to allow as many routes and capacity as possible to the new airport, this has also led to fierce competition around the operation of the new intercontinental routes.

Four airlines compete for “Daxing-Paris”

On March 20th, the Civil Aviation Administration of China (hereinafter referred to as the Civil Aviation Authority) announced the latest application for international airline operating licenses. The most striking of these is that Beijing Daxing-Paris has four airlines applying at the same time, including not only China Eastern Airlines Co., Ltd. (hereinafter referred to as China Eastern Airlines), which is considered to be the most likely to obtain the right to operate this route, and China Southern Airlines Co., Ltd. (hereinafter referred to as China Southern Airlines), which has long decided to develop Daxing Airport as its core hub. It also includes the private airline Juneyao Airlines Co., Ltd. (hereinafter referred to as Juneyao Airlines), which is based in Shanghai, and Beijing Capital Airlines Co., Ltd. (hereinafter referred to as Capital Airlines).

This is also a new change that has begun to appear on the application of popular route resources since the implementation of the new measures for the use and management of International Air Rights in October last year. According to the new rules, the international routes are divided into two categories, category one and two, and gradually break the unwritten “one route and one carrier” rule on the previous intercontinental line. In particular, the European routes are classified into the second category. Resources and openness are all greater, so there are more opportunities.

China and France have previously increased the number of weekly flights from no more than 50 to 126 through new air rights negotiations, which has greatly released the space chosen by airlines, and has made France the most popular in Europe. The tourist destination is able to accommodate more new routes. According to the newly announced route application, including the newly opened route and the additional flights, the airlines have proposed a new application for 72 flights per week. The departure airport includes Nanchang, in addition to the first-line hubs such as Beijing and Shanghai. Direct flights from sub-junctions such as Wenzhou and Nanjing, the destination has also expanded from Paris to a destination that includes direct flights to Nice and Marseille.

“The special thing about Daxing Airport is that many companies hope to use this as an important point for future development, so there will be a lot of companies applying for new routes here,” said Liu Wei, deputy general manager of China Eastern Airlines Beijing Branch on March 18. In an exclusive interview with the reporter of China Times, “but the air traffic distribution policy is continuous, which also determines the concept of the main base airline is different, so the state will still consider these problems when assigning navigation rights to Daxing Airport.”

At present, according to the Daxing Airport air rights distribution plan, China Eastern Airlines and China Southern Airlines respectively obtained a 40% share. Compared with the two airlines currently established on the domestic route network, how can they win more international routes at Daxing Airport become a key issue. Judging from the recent application of several international airline operating licenses issued by the Civil Aviation Authority, the two companies have already competed in this tit-for-tat.

In addition to the Beijing Daxing-Paris route, the two companies have also applied for both Moscow and several South Korean routes. As the new airport’s opening date is approaching, there will definitely be more new routes to become the focus of competition.

There also has been the problem that it is impossible for all airlines to obtain the qualifications for airline operations. “If the air rights application before the new regulations is that the airlines have done a lot of preparatory work in the early stage, they already know the results.” After the application is applied, it is basically not likely to be rejected. Now, after introducing the scoring mechanism and publicity, there may be some variables, which makes the airline dare to try.” A person from the marketing department told the China Times reporter.

In Liu Wei’s view, “Daxing Airport will take into account some factors in the process of air rights allocation. In addition to the hard indicators of the on-time rate of flights, which airlines have played a major role in the construction of the new airport, and which airlines have the ability to weave networks, and which are more suitable for point-to-point operations, which will be a factor to consider.”

The current “Measures for the Administration of the Allocation and Use of International Air Rights Resources” also clearly states that when two or more airlines compete for the same right to operate in accordance with the navigation rights regulations, the Civil Aviation Administration will comprehensively evaluate the four types of indicator to determine the allocation. Including consumer interest indicators, hub development indicators, resource use efficiency indicators and business performance quality indicators.

China Eastern Airlines’ dual hub ambition

Although the ownership of many popular international routes has not yet been finalized, the strategic intention of CEA in Beijing has actually begun to appear.

According to a set of data released at the Beijing route promotion meeting held on March 18th, China Eastern Airlines, Shanghai Airlines and China United Airlines carried 20 million passengers in Beijing in 2018, accounting for one-fifth of the Beijing market throughput. Among them, only the Beijing-Shanghai route, China Eastern Airlines can provide 7,500 seats per day, more than half of the total capacity of 12,000 seats per day.

During the interviews with the media during the two sessions of the country, Liu Shaoyong also made it clear that the construction and operation of Daxing Airport is a major historic opportunity for China Eastern Airlines and will open a new stage for the future development of China Eastern Airlines.

Liu Shaoyong said in an interview with the media that he would “use the power of the whole company to force the Beijing market and transform the two core hubs of Shanghai and Beijing into a spatial pattern of ‘two dragons going out to sea’.”

It is not difficult to see the ambition of China Eastern Airlines in the international business of Daxing Airport from the “going out to sea”. Although China Eastern Airlines and China Southern Airlines had start-ups in Beijing earlier, they have not had too many opportunities in the international business of long-haul routes. Although China Eastern has a total of 13 international routes originating in Beijing, it is mostly in Southeast Asia, Japan and South Korea. If you want to connect to Europe and the United States, you still need to dock other domestic destinations or share code with partners.

In fact, China Southern Airlines and even more other medium-sized airlines obviously have the same idea. Otherwise, there will be no competition for four airlines on the Paris route. For the mainstream purpose of the first release from Daxing Airport like Paris. Local resources, whoever can succeed will also take the lead in the layout of the new airport.

Liu Wei told this reporter that “Paris is the main hub of the SkyTeam Alliance. It is obviously more suitable for the members of the SkyTeam Alliance to fly. There are strong partners in the local area. The competitiveness of non-alliance partners will decline. It will also appear in other hubs. A similar situation.”

According to the plan announced by China Eastern Airlines, 200 large and medium-sized passenger aircrafts will be put into operation at Daxing Airport, and routes connecting the America, Europe, Oceania, Southeast Asia, Japan and South Korea, and Hong Kong, Macao and Taiwan regions of China will be opened.

As Liu Shaoyong disclosed before: “According to the market share of Beijing Daxing International Airport’s passenger throughput of 72 million in 2025 and China Eastern Airlines’ 40% market share, we will carry more than 28.8 million passengers at Daxing International Airport. The passenger traffic at the airport is equivalent of what we have in Shanghai Pudong, which is the largest increase in the future development of China Eastern Airlines.”

Albert K. Field Albert is my name, and travel the world is my game. I began my passion for travel at a very young age, I started this website as a strong means to further explore the world of frequent flyers programs (FFP). The relationship between customers and service providers in the aviation and hospitality industry always seems to be in opposition, however, since the introduction of United Airlines’ Frequent Flyers Programm since 1972*. This has significantly eased the middle spectrum between 2 parties. While the aim of airlines is still to generate more revenue; but for us,as consumers, are also given the opportunity to participate in the bargaining and exploiting from service providers. Living in a world of globalization where big data becomes vital for simulating successful economical activities, most of us will have to travel to other locations whether willingly or unwillingly, while you hearing all this fascinating stories about others, In fact, you too, can blend into the trend. It may not sound like how media illustrates, but indeed there are possibilities for us to have more spontaneous travel without getting held back by financial situation. My website consists of reviews of airline premium cabin products,airport lounges and stay reports of 5-star hotels and their executive lounges across the globe. In addition to all of that, I care the most about their frequent flyers program and loyalty program, which also includes banking partners. Plus, I spontaneously put up reviews and news update regarding premium water brands and restaurants. The purpose of this website is to share all of this information with my audience as well as inviting you to be part of my journey.

Continue Reading
Click to comment

Leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Airline Operation

SAS Presents New Livery After 21 Years

Published

on

For the first time in 21 years, SAS has launched a brand new visual identity and revealed a new design for its aircraft exterior. The new livery is a modern take on classic Scandinavian design, and to highlight the future of SAS, the new Airbus A350 and A320neo, the market’s most modern and fuel-efficient aircraft, will be the first to feature the new design.

Rickard Gustafson, President and CEO at SAS
Rickard Gustafson, President and CEO at SAS

“The new livery design is a symbol of our future, a more sustainable and competitive future for SAS, but one that also embraces our heritage. Travelers from Scandinavia will recognize their home, while global travelers will encounter the renowned feeling of the Nordics,” says Rickard Gustafson, President and CEO at SAS.

“Crucial to the successful relationship with our travelers, is the thousands of SAS employees who provide passengers with top class travel experiences and service every day. They are the face of our brand and their commitment is key to a more sustainable and competitive future,” Rickard Gustafson says.

The new SAS livery features several updates, including:

 The previous grey color used on the fuselage has been updated to a fresher shade of grey. 
SAS New Silver Logo
 A big proud and confident SAS logo has been placed at the front of the plane, in a silver grey tone.
 Analysis and customer feedback showed that the unique SAS blue color is strongly recognized by the community of SAS travelers. The new SAS livery embraces this unique relation between SAS and true travelers by enhancing and extending the blue color of the tail further down the belly of the plane. 
The earlier red engines have now been turned into silver grey and dressed with SAS blue crowns to harmonize with the SAS current visual identity, and to also embrace the connection to the SAS blue for SAS true travelers. 
The word mark “Scandinavian” is still located on the engines, but it is now in dark grey, in order to provide sufficient contrast to the light grey and silver color of the fuselage and to flirt with the SAS interior design color scheme. 
The word “Scandinavian” has also been largely and proudly placed under the plane on the belly as a symbol for SAS’s Scandinavian heritage and for clear visual identification from the ground. 
 The Scandinavian heritage is also shown in the three Scandinavian flags that have been updated in a modern, elegant way.

Explore The New Livery Here

Continue Reading

Route Network

SAS Relocates Its Stockholm – Los Angeles Route To Copenhagen

Published

on

SAS A330-300

SAS is opening a year-round route to Los Angeles from Copenhagen. The first flight will be in January 2020. Big demand from leisure travelers in Denmark and a more attractive timetable with daily flights mean that the route will be part of the flight program from the new year.

SAS PRESS RELEASE

From 13 January 2020, SAS will be moving its route between Stockholm and Los Angeles to the Danish capital. This won’t be the first route SAS decided to relocate due to the previously introduced Swedish aviation tax(Lag (2017:1200) om skatt på flygresor) which carriers has to pay up to SEK400 (EUR39) on long haul routes departing from Swedish airports. The non-existent flight SK963 was flying between Stockholm – Hong Kong before was moved to Copenhagen under a better time slot in October 2018.

A320neo SAS
A320neo SAS

However, this won’t be the only reason for SAS to make the decision of moving its long haul operation from Stockholm, the “Greta Thunberg effect” has been impacting Swedish travel habits, new buzzwords in Swedish mainstream media like flygskam (flight shame) and tågskryt (train bragging) has made the global air travel industry worried.

SAS is also moving its Los Angeles route to Copenhagen at a strategic time as the other big carrier at CPH – Norwegian will suspend 3 long haul destinations in winter season 2019, routes being canceled are Copenhagen to Fort Lauderdale, New York JFK and Los Angeles. This was seem as a move that the low cost carrier is shifting from growth to profitability, something SAS is also keen on after the week-long strike earlier (from April 26 to May 2) in the summer season.

The ‘new’ route will have an improved timetable from six to seven departures a week from Copenhagen Airport(CPH) starting next March.

“By opening a year-round route to Los Angeles from Copenhagen we are increasing availability and enabling growth. The timetable is attractive, and thanks to the economies of scale we can achieve in fully utilizing our fleet, we are in a position to provide a daily service from Copenhagen Airport,” says Karl Sandlund EVP Commercial, SAS.

“Los Angeles is one of the most in-demand intercontinental routes from Copenhagen, and an important route for our leisure customers in particular, who are keen to visit the American West Coast. We continuously assess our offering in order to optimize our network for our travelers,” says Karl Sandlund.   

Flights from Copenhagen to Los Angeles can be booked from 3 September 2019. The first flight departs 13 January 2020. Passengers with already purchased tickets from Stockholm to Los Angeles, will be rebooked via Copenhagen.

A350-900 SAS
A350-900 SAS

The new time schedule for the route starting January 13th:

Flight SK931 departs from CPH 09:35 and arrives in Los Angeles 12:15 the same day. 
Flight SK932 departs from Los Angeles 14:00 and arrives in CPH 10:10 the day after.

There will be daily departures on the route SK931/932 between Copenhagen and Los Angeles starting on March 31st 2020, something suggests that their newly received A350s next year will come into play here.

Continue Reading

Trending