Wednesday, December 15, 2010

Long-term look at the aviation industry will not be the country back into

 February 23, Wang Zhenghua, chairman of Spring Airlines accepted an interview Tencent Finance, talked about the plight of the private aviation business, prospects and his hopes.
Guests view
We believe that the impact of the private airlines are secondary, the most important influence on two aspects: First, doubling the aircraft capacity, and second, the major government funding to support state-owned airlines. Generally speaking, private airlines that can still, whether it is safe, or in the passenger business organization, I think we basically have this five or six, or can be. Of course, in the context of the current economic crisis, their funding is more prominent . We hope the Government worth mentioning, no matter whether banks should try to take some support options, including support, enabling them to solve financial problems. I do not think is is 6 years later, we still hope we can have 80 and 100 aircraft. because a large market development situation and look great, there must be a possibility. : Dear friends Hello everybody! This is the financial channel Tencent jointly with the China Economic Times business section for the winter, the fifth into our interview room of the guest was Mr. Wang Zhenghua, chairman of Spring Airlines.
Wang, chairman of your Well, welcome to interview you accept Tencent Finance. We know that the financial crisis on the domestic economic impact of the gradual deepening. widespread loss of state-owned airline last year, private, low-cost airline, private airlines have also appeared in many problems. But we see that Spring Airlines is thriving. First, please tell us about Wong Tung & Partners, after the Spring Festival Golden Week has ended, the price of each airline ticket is not cool down? current needs of the aviation market is significantly down?
of private The most important impact of airlines has two aspects: the aircraft capacity growth, government funding to support state-run airline
Wang Zhenghua: Yes. Now the aviation industry, apart from the financial crisis other than, more importantly, have increased their capacity very powerful. the capacity now, almost four years ago than we are when you have just joined the air force has doubled. capacity can not suddenly increase so fast. This is very serious for us.
Moderator: For Statistics show that China will increase this year, about 180 aircraft?
Wang Zhenghua: Yes. Therefore, the Government also adopted many measures to reduce imports, internal regulation and other measures as much as possible. aircraft and more capacity to increase, competition is particularly tragic. Another convenience, some large companies, also received the injection of state funds, several billion injection of funds, which the original balance of the market, the old have more severe damage sustained. So now the competition really tragic.
Moderator: For Spring Airlines, the impact of external economic environment of great influence, such as excess capacity, the economic crisis for many companies is also the problem of excess capacity, Spring Airlines is also facing such a situation, you how do they respond?
Wang Zhenghua: on the one hand, as internal, it is how to further reduce costs. External, from the open source, we would like to develop some more tourism products, expand the air source. from the present situation, the gold on Monday before, there is a demand for The company is also selling a relatively low price.
Moderator: We all go to work after the Spring Festival, the school reopened, so the fault that we can imagine. can not compare, the fault of the situation and last year, there is no a shrinking?
Wang Zhenghua: the price should be lower than last year, said a into to a five percent or so, such as the status of our company. Last year, after the basic play tied the Golden Week, Golden Week this year, hit hard after the draw. @ @
Moderator: Spring Airlines also has a good, unique advantages, that is, with very closely with the tourism industry. Under the present economic crisis, some experts pointed out that the weakness of our tourism market may also run for three years, This Spring Airlines will not have been affected?
Wang Zhenghua: these are influential, but we think not the main. whether it is financial crises, natural disasters, for whatever reason, we think that is secondary. more important reason is that the two reasons I said earlier, the aircraft capacity doubled, large companies and government funding.
Moderator: private airlines can be understood as the two most important threat is the capacity of a excess, a type of large-scale state-owned national airline for a strong policy support?
Wang Zhenghua: Yes.
Moderator: Civil Aviation Authority in addition to these major airline to support, but also exempt from the fuel surcharge tax, the implementation of price regulation fees, etc., all these private airlines have no real benefit?
Wang Zhenghua: Civil Aviation Administration late last year, policy, the first is fair, many visitors you are big companies, so they returned to the airport construction fee you more. our small company,bailey UGG boots, less tourists, such as about 300 million last year, I can not, back then a lot less than others. < br> This series of policy, we think, very just and fair. The there are tens of millions of profits. The problem is 11 months later. Therefore, the Government in such a mark on the second half of last year's civil aviation construction funds returned to us, just so that we can continue to maintain profitability, it is very important. Last year we take into account the end, the basic is to be able to flat, on the basis of the flat, with the tens of millions down, is very useful to us.
Moderator: Let us put aside these objective constraints, Wang you think At present, low-cost aviation market in the country, from the maturity of the market, consumers for the degree of maturity, and a few years ago than when you first enter, what significant changes?
Wang Zhenghua: the original low the cost of aviation, only a handful of returnees would be more natural to accept that most people are not easy to understand. tickets are very happy when prices are low, but when the plane he still wants full service company. This situation should be said at that time more serious. after all these years, should say step by step to being mature, especially some of our eastern coastal cities.
example, we route from Shanghai to Xiamen, before we fly, AirAsia of Malaysia has been asked to fly , and fly AirAsia after the general assessment that Xiamen is very civilization and progress, but in fact people online awareness,UGG boots, particularly awareness of online booking is very, very poor. So he was looking for an agent and some further remedy, after a years later, he withdrew from the market.
we do now, the general feeling is that our visitors will have a familiar process. from Xiamen situation, the development of our online payment very fast. Now is the day four cruises, more than 80% of our online payment, that is, almost every day, 1200,1300 people come and go through the online payment. only two places in Shanghai and Xiamen. We believe that the Chinese visitors online payment capacity is still very strong. This is a guide, it requires a process.

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