In the first half of 2013, the aviation market is not optimistic

In the first half of 2013, the aviation market is not optimistic “It is expected that the aviation market in the first half of 2013 will not be optimistic. The second half of next year may be better than this year.” During the 2013 Eastern Airlines Working Conference held at the end of last year, Chairman Liu Shaoyong of Eastern Airlines made an estimate of the aviation market in 2013.

Under the more pessimistic industry expectation, China Eastern Airlines is speeding up its internal integration. The general manager of the company, Ma Xulun, disclosed that on the basis of traditional air cargo, it will speed up the construction of express transportation neutral platform, strengthen the truck business, and start the civilian biological flow. Form new profit growth points for freight transportation.

For the first half of this year

The CAAC internal statistical data obtained by the reporter showed that in November 2012, the airline suffered a loss of 570 million yuan (a loss of 1.22 billion yuan in the same period in 2011). It is expected that the airlines will still lose money in the traditional off-season in December.

According to the statistics of the Civil Aviation Administration, the total transport volume in November was 522,000 person-times, an increase of 8.2% year-on-year. Passenger transport volume was 25.84 million person-trips, an increase of 8.9% year-on-year, and cargo and mail throughput was 51.4 tons, a year-on-year increase of 5.7%. However, fuel costs in November increased by 530 million yuan year-on-year, but exchange gains reached 440 million yuan (compared with exchange losses of 650 million yuan in the same period of 2011).

In this regard, an airline marketing department analyst told the reporter that the loss in November was more normal, mainly due to the decline in ticket prices under the influence of the off-season. It is expected that the situation in December will be about the same as in November.

Liu Shaoyong pointed out that the current aviation market situation is even worse than the market at the end of 2008, and it is expected that the first half of 2013 will be more difficult, especially in the first quarter.

The reporter learned that throughout 2012, Eastern Airlines is expected to achieve a transportation turnover of 14.42 billion tons kilometers, a year-on-year increase of 5%, passenger traffic of 73.14 million passengers, an increase of 6.5% over the same period of last year. The increase in transport volume and income is higher than the increase in capacity investment. As the passenger load factor of the industry decreased, the passenger load factor increased by 0.9% year-on-year. In 2013, the total turnover volume and passenger transport volume index set by the Civil Aviation Administration of China increased by 8.0% and 9.4% respectively year-on-year.

“Overall, the situation facing 2013 is relatively difficult, the growth rate of the civil aviation industry is declining, and the contradiction of oversupply of the overall capacity is even more pronounced. The scope of the new high-speed railways such as Beijing-Guangzhou opened to expand the scope of aviation, and the recovery of China-Japan routes is still seen. Without hope, these will impact our domestic and foreign markets.” Ma Xulun, general manager of Eastern Airlines, told reporters, but for China Eastern itself, it will control the introduction of speed in the speed of about 8% to 10%, while accelerating passenger and freight transport The transformation.

Eastern Airlines integration
According to report, Eastern Airlines is currently planning the internal integration of the tourism sector and the freight logistics sector. Recently, Eastern Airlines has been listed on the Shanghai Stock Exchange and plans to transfer its controlling domestic largest cargo airline China Cargo at a price of 951 million yuan. Airline Co., Ltd. (hereinafter referred to as "China Airlines") owns 51% of the shares, and the purchaser is expected to be the Eastern Airlines Logistics Co., Ltd. (hereinafter referred to as "Yanghang Logistics") which is engaged in the logistics business of China Eastern Airlines.

“Integrating the company's logistics and air cargo business is to transform the business model, take the road to 'integration of the world' and transform it into a modern logistics service provider.” Ma Xulun disclosed that on the basis of traditional air cargo, the company It will expedite the construction of a neutral platform for express delivery, strengthen the truck business, start the flow of people's livelihoods, and form a new profit growth point for freight transportation.

At the same time, the restructuring of the tourism industry under the original Eastern Airlines and Shanghai Airlines has also entered the implementation phase. A number of Eastern Airlines management revealed to reporters that the tourism business of CEA’s current Tourism Investment (Group) Co., Ltd. will be integrated into Shanghai Airlines International Travel (Group) Co., Ltd., a subsidiary of Shanghai Airlines, and will strive to create high-end tourism.

“China Eastern’s tourism products and financial products and other business entities have broad space for development. We must adopt a combination of transformation and aviation business to establish a business model for the entire industry chain.” Liu Shaoyong pointed out that the realization of meeting the “single demand” to satisfy "Integrated demand" extension.

In addition, in addition to the traditional airline passenger and cargo business, China Eastern Airlines also plans to expand its non-navigable related business to counter the risks of the main business. Liu Shaoyong revealed that in 2013 the reform of subsidiary companies of the Eastern Airlines Group was also one of the important tasks. “The other plates were small and scattered in the past. I hope that through the establishment of some industrial groups, we will cultivate several related business units that can become bigger and stronger. ."

According to report, at present, the subsidiary companies of the Eastern Airlines Group mainly include financial control companies, food companies, import and export companies, media companies, and investment companies. In 2012, it is expected to achieve a profit of 450 million yuan.

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