Shanghai-based China Eastern Airlines (MU) has relaunched China United
Airlines (KN) after purchasing a 20% stake from parent company China
Eastern Air Holding in August (ATW Daily News, Aug. 27).
Through this transaction, MU consolidated the assets of its former
Beijing-based KN subsidiary with Hebei Branch Co. to further expand into
the Beijing market.
KN was launched in 2004 by Shanghai Airlines and China Aviation Supplies Holding Co. Its main operating base was Beijing Nanyuan Airport, a former military airport. When Shanghai Airlines merged with MU in 2009, KN became a wholly owned subsidiary (ATW Daily News, Oct. 12, 2009).
An MU insider said, “As Hebei province is quite near to Beijing geographically, it is necessary to consolidate our Hebei Branch Co. with Beijing-based China United Airlines to better explore the Beijing market.” The deal expands KN’s fleet from eight to 23 aircraft.
Beijing is widely believed the best market in China due to the fast growth of passenger traffic, especially premium traffic. Beijing Capital Airport handles an estimated 8 to 10 million passengers annually.
KN was launched in 2004 by Shanghai Airlines and China Aviation Supplies Holding Co. Its main operating base was Beijing Nanyuan Airport, a former military airport. When Shanghai Airlines merged with MU in 2009, KN became a wholly owned subsidiary (ATW Daily News, Oct. 12, 2009).
An MU insider said, “As Hebei province is quite near to Beijing geographically, it is necessary to consolidate our Hebei Branch Co. with Beijing-based China United Airlines to better explore the Beijing market.” The deal expands KN’s fleet from eight to 23 aircraft.
Beijing is widely believed the best market in China due to the fast growth of passenger traffic, especially premium traffic. Beijing Capital Airport handles an estimated 8 to 10 million passengers annually.
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