Shenzhen Airlines speeds up domestic expansion

Published on June 21, 2009 by brooks | This story has been viewed 125 times

Shenzhen Airlines is taking advantage of the upturn in Chinese domestic demand and is ramping up its expansion, announcing an agreement yesterday with the Harbin municipal government to establish a branch company in the northeastern city.

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The carrier will add nine aircraft to its Harbin base and plans to operate 12 by 2016. It will expand its domestic network to include Xi’an, Dalian and Sanya among other cities, and also will fly to Russia. It launched a branch company in Nanjing in March and in Xinning last month and plans to establish branches in Chengdu and Changcha by year end.

The strategy has proven rewarding as Shenzen earned a CNY200 million ($29.2 million) profit through the first four months of 2009 . “We are confident that we will report a net profit this year owing to the drop in fuel price,” Chairman Li Kun told ATWOnline. It reported CNY28 million in net earnings last year.

Separately, the company sold its 46% stake in Yalian Business Jet Co., launched in 2007, to New Epoch Leasing Co. for CNY66 million.

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