TravelNews

[Travel News]: China Express bets on subsidised routes, home-grown jets as path to profits

TheTourAttraction.com aims to provide the latest global travel and free travel news, travel and visa policies, and flight information. We hope to provide insights into tourism market, technology and development trends with everyone by providing the latest relevant information. Despite the raging COVID-19 epidemic in 2020, we always firmly believe that mankind will overcome the disease and the tourism market will definitely recover. TheTourAttraction.com look forward to your attention and support, and witness the development of the global tourism industry with us. Looking forward to the information TheTourAttraction.com provide can help you. We will continue to follow up and obtain the latest data, and look forward to your attention and support.

The following is the [Travel News]: China Express bets on subsidised routes, home-grown jets as path to profits from [Reuters] recommended by TheTourAttraction.com:

China Express predicts COMAC planes will account for the majority of its fleet by 2025.

China Express Airlines, a regional carrier based in the southwestern city of Chongqing, is betting that its business model of flying heavily subsidised routes using an increasingly Chinese-made fleet will give it an edge over rivals.

The airline reported a 22% rise in annual profit last year – a near-impossible feat in the pandemic-ravaged aviation industry – thanks to subsidies of more than RMB 625 million (USD 97.14 million) that accounted for 87% of its total profits before tax.

Routes in third and fourth-tier cities, 90% of which are monopolies, helped fuel growth and made it the only listed Chinese airline to make a profit in 2020.

That put the previously obscure carrier on the radar of investors seeking faster-growing, domestic-focused alternatives to China’s three biggest airlines.

Shares in China Express, with a fleet of 52 mostly Western-made planes as well as 100 domestically manufactured jets on order, surged 56% last year and have risen close to 20% this year.

It is benefiting from Beijing’s drive to develop new airports in regional areas, as well as a push for locally built jets to challenge the dominance of Airbus, Boeing and Brazil’s Embraer.

In a sign of its strategic importance, China Express was the first private airline in China to take delivery of the home-grown ARJ21 regional jet; it plans to buy a mix of 100 ARJ21s and C919s, a boost to state plane maker Commercial Aircraft Corporation of China (COMAC).

China Express predicts COMAC planes will account for the majority of its fleet by 2025.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button