Flying starts: new Chinese carriers replace state monopoly

Article Abstract:

Three carrier groups were created by the Chinese government when the Civil Aviation Authorty of China was dismantled. The first is composed of seven semi-autonomous airlines, which includes international carrier China Eastern Airlines (CEA). CEA has 60 planes, 24 of which are from the US' McDonnell Douglas and Europe's Airbus Industrie. It has relatively more autonomy in choosing aircraft and managing profits as compared to the second group of subsidiaries and joint ventures of the seven airlines. The third group is composed of independent carriers which does not receive government management input nor financing.

China, Analysis, Civil aviation

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Awaiting takeoff

Article Abstract:

Philippine Airlines is working to emerge from the troubles that have dragged down its reputation and profitability. A vicious boardroom battle ended with Lucio Tan in charge, but Carlos Dominguez was chosen as chairman and seems to be cutting costs, improving cash flow and raising the level of service. Partial government ownership has burdened the airline with required routes and low fares, while an ageing fleet demands replacement, but prospects are improving.

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Routes up for grabs

Article Abstract:

Philippine Airlines is considering releasing its so-called missionary routes to smaller carriers, and a number of local ones are interested. Each faces obstacles, however. PacificAir is the largest and most experienced of these, but a move to larger planes entails other costly changes, and the government might not approve a higher fare structure. Cebu Air has no aircraft and no traffic rights, just an international franchise.

Transportation

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