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Hainan Airlines Overview . ACI International Air Service Program December 6, 2012 Washington DC. HNA Group Overview. Hainan Airlines. Fleet. Codeshare and Interline Partners. Service and Product. Frequent Flyer Program. Honors and Awards. North American Operations. Market Trends.
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Hainan Airlines Overview ACI International Air Service Program December 6, 2012 Washington DC
HNA Group Overview Hainan Airlines Fleet Codeshare and Interline Partners Service and Product Frequent Flyer Program Honors and Awards North American Operations Market Trends Going Forward – Challenges and Opportunities
1993 2007 2011 2000 Total Assets: 260 Billion RMB (approx. 41.3 Billion USD) Founding of Hainan Airlines 8 Business Segments In HNA Group Founding of HNA Group HNA Group Overview Total Revenue : 100 Billion RMB (approx. 15.4 Billion USD) Employees: around : 110,000
HNA Group Overview Business Segments HNA Aviation Group
Capital Airlines— Fleet:25 Deer Jet— Fleet:31 Hainan Airlines— Fleet:115 Tianjin Airlines— Fleet:83 Leading Airline in HNA Group, International and domestic trunk lines Charter flight, regional combined trunk and feeder routes Business charter Flight Regional combined trunk and feeder routes HNA Group Overview
HNA Group Overview Beijing Capital Helicopter:5 Hong Kong Airlines— Fleet:22 Regional flights between Mainland China and Hong Kong Expanding International routes Provide exclusive and customised helicopter tours Hong Kong Express— Fleet:6 Charter flights between Hong Kong and Taiwan Regular flights to Southeast Asia Lucky Air— Fleet:17 AigleAzur:12 Based in Orly Airport to operate regional and intl routes Regional combined trunk and feeder Routes West Air— Fleet:9 ACT Air:4 Hong Kong Corporate Jet:9 Regional Airlines, operate feeder routes Cargo Transportation in Turkey Business charter Flight based in HKG Africa World Airlines:2 Yangtze River Express— Fleet:17 Ghana LLC, operate regional routes Cargo Transportation
13 countries, 19 destinations, 9 Operation Bases, 62 domestic destinations 478city pairs350flights per day, 70flights per day in PEK connect 50 cities
9 Operation Bases 62 domestic destinations 478city pairs350flights per day 70flights per day in PEK connect 50 cities
F8/C60Y219 3 A340-600 F32/Y259 5 A330-300 F36Y185 6 A330-200 F34/Y198 3 B767-300 87 F8/Y155 B737-800 Y147 3 B737-700 F8/Y137 4 B737-400 Y143、147 14 B737-300 Seats NumberA/C Type 115 Total Note: Update to 2012.04.16
Hainan Airlines has 10 code-share partners and 112 interline partners. Airline Partners
Frequent Flyer Programs Fortune Wings Club was launched in 1999. Currently10 million membersmainly based in China.
Frequent Flyer Programs Major airline partners Air Berlin, China Airlines…… • Over 60 partners in eight different categories Airline, hotel, car rental, travel services, financial, telecom, entertainment etc.
HNA Style Products & Services Air To Rail integrated booking service. Complimentary ground transfers via Mercedes Benz limousines to and from Beijing Airport for First and Business class passengers. Exclusive transfer lounge for connecting passengers in Beijing. VIP Lounges which combine business, entertainment, leisure and catering functions in Beijing, Haikou - Xian and Urumqi. 180 degree first and business class seats. Personal and thoughtful turndown service. Designer Amenities. Advanced in-flight entertainment system. Newly-introduced tableware perfectly integrates Chinese culture with HNA features. Improves special transportation service standards. “Care More” Five-star service for passengers traveling with pets.
Honors and Awards 1. SKYTRAX 5-STAR Airlines in 2011 & 2012 2. Won the “Best Airlines in China ”and “Excellent Service Award” Awarded by SKYTRAX for consecutive 3 years 3. Best Airline in China, Global Traveler – Twice 4. Best Airline in China 2012, Premier Traveler Top Prize for Safety Record in 2009, BCIA Skytrax 5 star 1. 60 Years 60 Brands in China,the only airline honored 2. SKYTRAX 4 star Golden Eagle Cup, best safety record in Chinese airline industry, CAAC Best Airline in China in 2008,Global Traveler Passenger Satisfaction Award in ten consecutive years, CAAC & CCAA
North American Operations Beijing - Seattle Service started with Airbus A330 four times a week June 9, 2008 Current schedule varies between 4 times a week to daily, depending on season. Authorized to serve. Authorized to serve. Beijing - Honolulu Beijing - Chicago
Market Trends Chinese are becoming world travelers. In 2011, 70 million Chinese traveled abroad and spent $69B By 2020, WTO predicts that China will be the world’s biggest destination AND source of visitors Chinese visitors to the US in 2011 totaled 1.1MM, up 36% from 2010, the highest increase of the top 25 countries, down from a 53% increase the year before. Most Chinese travel in large groups.
Market Trends In 2010, 3MM Americans visited China vs. 2.5MM in 2009. Forecast growth for Chinese visitors to US from 2012-2016 is 274% according to the US Department of Commerce. US visa issuance has been simplified, time reduced By July 2012 US visas reached 1MM
Market Trends Average spend of Chinese visitors is Among the highest. Chinese travel to the US exploded after ADS approval in 2007. As of 2011, China is the 9thlargest source of visitors to the US Flight POS ratio is shifting to China from the US.
Market Trends Types of Travelers VFR – Peaks in summer. Business Travel: 25% Pleasure Travel: 57% traveled on pleasure Students
Business Travel Key Points about Business Travel GBTA BTI™ Outlook - China. Domestic business travel is increasing faster than international. China’s economy has slowed in lockstep with Europe’s woes. GDP growth has slowed in Q1-Q2 to 8.1%, 7.6% respectively Chinese authorities manage their economy through the global slowdown
Business Travel Key Points about Business Travel GBTA BTI™ Outlook - China. Chinese business travel will show strong growth over the next 6 quarters
Business Travel Key Points about Business Travel GBTA BTI™ Outlook - China. China’s business travel market is only second to the US and will exceed $200 billion in 2013 vs. $173 billion In 2012
Business Travel Key Points about Business Travel GBTA BTI™ Outlook - China. Capacity at China’s four largest airports (PEK, PVG, SHA, CAN) has doubled in the past 10 years. Second and third tier airports have Also doubled or tripled in capacity. New airports being built in China (82 new, 101 enlarged 2011-15)
Going Forward Challenges US – China Aviation policy is still not “open skies” Slot / airport congestion problems in China and the US Limited air route availability (CAAC “non-compete” policy) Lack of TRWOV shifts some international traffic to Europe and other midpoints Aircraft / airport range / performance limitations / crew rest Fuel costs & pilot shortage
Going Forward Opportunities Boeing predicts Chinese carriers will grow at an average annual rate of 8.9% over the next 20 years. Secondary markets, CAAC policy changes? New aircraft Growth of Chinese traveling internationally and potential new visa agreement