Hainan Airlines

[Dobbo]

Some great infographics, demonstrating that the MAN-China market is stronger than initially forecast.

View attachment 6557

 

[User001]

Makes it even more confusing as to why they need to reduce the flight this winter....

 

[Dobbo]

Wasn't there a maintainence issue?

 

[Land23R]

I think it would be interesting to see that graph for May-Sep this year, as to whether the budget was increased in year 2 of operation and whether actual continued to beat it over the summer.

That said, the figures shown so far are very encouraging.

 

[Aceshigh]

I'm as bemused as everybodyelse. If it is apparen't above forecast, why on earth chop it back ? Unless there feed the alternate days onto the "daily" Brussels flight ?

It almost feels like marching up the hill simply to march back down again.

 

[Jerry]

Do Hainan have 787s with the Rolls Royce engine problem? Something to do with the blades?

 

[David_itl]

This blurb actually carries a direct quote from Hainan:

http://www.adsadvance.co.uk/manches...rs-china-dividend-to-northern-powerhouse.html

"Ryan Zhang, UK General Manager for Hainan Airlines, said: “We have been extremely pleased with the Manchester-Beijing route, which has been one of the most successful we have launched in recent years. It has massively surpassed our predictions and expectations, which prompted us to making it daily over the summer months. Manchester has proved to be an extremely popular destination for our Chinese customers, whether they be students, business travellers or people visiting friends and family based in the North of England or wider UK. We look forward to continuing to grow the route out of Manchester in the coming years and are delighted it has had such a positive impact on the region."

And in terms of actual O+D on Beijing-MAN and vice versa

"The total number of passengers travelling from Manchester Airport’s catchment area to Beijing (either directly or indirectly in both directions) has risen by 20,415 (+38% uplift) to 74,055 since the introduction of the route. This means the opening of the direct route has stimulated an estimated 28,838 net additional passengers travelling directly between Manchester and Beijing."

 

[Aviador]

Research reveals direct flights between the North and Beijing are delivering a "China Dividend"

• Two years since visit of Chinese President, trade and tourism between the North and China has boomed thanks to direct flight service
• Benefits set to multiply as UK-China relationship is further strengthened and increasing numbers of Chinese visitors begin and end their ‘UK tour’ in the North
• Study launched as Ministerial delegation heads to Shanghai to participate in ‘Northern Powerhouse Day’ at China International Industry Fair
• Report calls for the prioritisation of further direct links to China and other key growth markets so as to drive Northern prosperity and balance the UK economy.

KEY REPORT FINDINGS

UK export values from Northern Hub soar 265% to £200m per month

Visitor spend of £140m – double expected value

40% more people in the North now travelling to China than prior to commencement of the route

Passenger volumes 15% higher than predicted

Inward investment pipeline doubles in 12 months

International student numbers grow at twice national average

Almost exactly two years since President Xi Jinping visited the North and announced the UK’s first direct flight to China outside of London, research released today reveals that the connection is delivering a significant economic reward, or ‘China Dividend’, to the Northern Powerhouse.

The study by the economic consultancy Steer Davies Gleeve is the most comprehensive analysis ever undertaken into the economic and social impact of a brand new direct, long haul route between two countries. It has revealed that in its first year of operation the Manchester-Beijing air route, operated by Hainan Airlines, has driven a significant increase in exports, inward investment, and international student numbers into the North.

In addition, the direct flights have delivered a substantial increase in the number of inbound tourists to the North, with many lured by the region’s natural and historic attractions, luxury shopping sites and Premier League football teams.

Already worth hundreds of millions of pounds a year to the North, this “China Dividend” is predicted by researchers to grow substantially in the years ahead as the profile of the region increases further in Asia and as civic and business ties between the North and China are strengthened further.

The report, called ‘The China Dividend: One Year On’, is being launched as a Ministerial delegation from the UK Government heads to Shanghai to promote trade and investment opportunities in the Northern Powerhouse.

Led by Trade Minister Baroness Fairhead and Northern Powerhouse Minister Jake Berry, the group will meet with prospective investors and trading partners at the China International Industry Fair, where the impact study will also be presented.

The report found that in its first year of operation, the Hainan Airlines route delivered the following benefits:

Passenger numbers

• The route has carried 90,000 passengers between Manchester and Beijing, 15% higher than anticipated and delivering an increase in frequency that has seen the service fly daily between the two cities.
• The total number of passengers travelling from Manchester Airport’s catchment area to Beijing (either directly or indirectly in both directions) has risen by 20,415 (+38% uplift) to 74,055 since the introduction of the route. This means the opening of the direct route has stimulated an estimated 28,838 net additional passengers travelling directly between Manchester and Beijing.

Exports

• The value of goods exported by businesses across the North from Manchester Airport to China has increased by 265% to nearly £200m every month.

FDI

• The pipeline of inward investment projects is increasing. Inquiries from China to Manchester property and investment agents have doubled, with the current pipeline potentially capable of creating 850 new jobs in the City Region; a similar picture is likely in the other cities of the North.
• Department for International Trade data demonstrates that the Northern Powerhouse is experiencing a marked uplift in inward investment projects (a 24% increase in 2015/16 over the previous year), and in 2016 accounted for 25% of total UK exports to China (£12.7bn for the UK as a whole, £3.1bn for the Northern Powerhouse).
• There has been a 54% increase in Chinese investments in property in Manchester in 2016, compared to a year earlier.

Students

• The number of Chinese students enrolling at the University of Manchester is double the rate of other universities in the UK.

Tourism

• Since the beginning of the route, Chinese tourists contribution to the region’s visitor economy has doubled to £138.68m p.a, with a further contribution of £626m anticipated over the next five years
• Chinese tour operators such as Nanhu are now incorporating Northern cities and attractions as a core component of their UK leisure tour programme.

Based on the range and scale of benefits realised in just 12 months, the report recommends that securing further direct links to China and other key growth markets should sit at the heart of strategies to drive Northern prosperity and rebalance the UK economy.

The report goes on to conclude that its findings strengthen the case for large-scale investment in infrastructure projects like Northern Powerhouse Rail, which would dramatically improve journey times between the North’s major towns and cities and Manchester Airport, and in turn help attract new long haul air services.

Another key finding of the study is that the Manchester-Beijing route is increasingly being viewed as not just an entry point to the North for the Chinese visitors, but the country as a whole, indicating Manchester Airport could have a critical role to play in strengthening the UK-China relationship in years to come, especially as other airports are at full capacity.

Manchester Airport Press Release

 

[Aceshigh]

"Almost exactly two years since President Xi Jinping visited the North and announced the UK’s first direct flight to China outside of London, research released today reveals that the connection is delivering a significant economic reward, or ‘China Dividend’, to the Northern Powerhouse."

Being a pedant I'm sure that should say "mainland China" ?

Last time I looked Hong Kong was also a part of that country.

The China Forum also failed to mention Hong Kong !!!!

 

[David_itl]

Can someone show this report off to Lord Adonis?

"The chair of the National Infrastructure Commission warned today that Heathrow's competitiveness is at stake if stalling on expansion continues, as its European rivals fly ahead on connections to the likes of China."

Seems a bit at odds with what the Northern Powerhouse minister said!

http://www.cityam.com/275294/lord-adonis-warns-stalling-heathrow-expansion-means-airport

 

[David_itl]

I believe at least 2 , possibly 3, of those cities you listed will be on MAN''s on boards in the near (up to 3 years) future operated by Hainan.

Guangzhou won't be Hainan so outside the thread scope.

 

[Land23R]

After the positive stories recently on the success and wider benefits of the MAN route, has anyone read this thread on A.Net?

HNA's airlines miss lease payments

 

[Scottie Dog]

Not seen it before, however it makes for slightly disturbed reading. Hopefully all will be sorted before real problems hit them.

 

[Aceshigh]

It could only happen at Manchester

18 months into a route and we normally get;

A Coup de'tat

Civil war

Sanctions

A breakdown in international relations with the country involved

Or in this case a "rock solid" company suddenly and completely out of the blue indicating a financial issue !

God help us if Korean announce Seoul.
I would fear a nuclear war inside 6 months !

Words fail !

 

[David_itl]

Hainan has applied for 3 weekly Guangzhou-MAN from December

 

[Tom Whitelegge]

David, I thought Guangzhou, was not happening with Hainan? It would be excellent if it happens, though considering the cut backs on the present route it's a concern.

 

[gonetech]

2+2=7 Perhaps?

 

[David_itl]

i was expecting Guangzhou to happen, but not for a while. Hainan appears to be the chosen "instrument" for secondary ops in countries but the one that MAN is probably wanting to secure is Shanghai as it's potentially a bigger market than Guangzhou and on a par with Beijing but for whatever reason Air China really do not want to give up their rights and I don't think PVG-MAN would fall under the category of having an allowable 2nd Chinese carrier on the route.

 

[Aceshigh]

Could we speculate as to why Air China don't just start the service ?

Is it protecting LHR ?

Given they alrwady have rights and the fact it would be a money spinner given they must be aware of Hainan figures, it seems odd they don't take up the service ?

 

[Land23R]

In view of a post on another forum, I was curious to get a perspective on distances, being ignorant on such matters.

According to web sites, HKG to CAN is only 74 miles but then I'm not sure of immigration / border controls between HK and mainland China and how much of a bind that would be for current pax using CX.

Beijing to Shanghai is given as 664 miles as the crow flies but 819 miles by Bullet Train.

Beijing to Guangzhou as 1,170 miles direct and 1,428 miles by train.

Given other stats such as populations, potential traffic etc, as Aces suggests, it is frustrating that Air China are just sitting on their licence.