Air China Passenger Numbers May Rise 15% Next Year - ResearchInChina

Date:2007-10-19liaoyan  Text Size:

Air China Ltd., the nation's biggest international carrier, said it aims to raise passenger numbers at least 15 percent next year as economic growth fuels demand for holidays and business trips.

The carrier will likely fly 35 million to 38 million travelers this year, Chairman Li Jiaxiang told reporters in Beijing late Thursday. The airline also expects to make a profit on overseas routes next year, he added.

Chinese airlines have boosted passenger numbers on domestic and international routes as rising wages make flights affordable to more people. Outbound journeys from China have almost tripled in the last five years and may rise threefold to 100 million by 2015, according to the World Tourism Organization.

"We have witnessed fast growth over the past five years," Li said.

The carrier plans to make a profit on European routes this year and to cut losses on flights to North America and Australia, Li said. It expects to make a profit on overseas routes overall next year, depending on fuel prices and other factors, he added.

Air China Cargo, the airline's freight unit, will probably make a profit in the second half, Li said. Still, the profit is unlikely to be enough to offset its first-half loss, he added, without elaboration.

Air China's parent is yet to decide how it will vote on Singapore Airlines Ltd.'s plan to buy a stake in China Eastern Airlines Corp., the country's third-largest carrier, Li said. The company owns 11 percent of China Eastern's Hong Kong-listed shares.

"We should take a friendly approach to ensure the mutual and beneficial development of the parties concerned," Li said.

Singapore Airlines and parent Temasek Holdings Pte agreed to buy a 24 percent stake in China Eastern for about $918 million last month. The deal needs approval from two-thirds of minority investors.

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