A Famous Chinese Brand and Fleets
ASCEND I PROFILE y most accounts, the first double-digit passenger traffic growth from decade of the 21st century 2004 through 2010, according to the Civil presented unprecedented chal- Aviation Administration of China (CAAC). While lenges for the global airline that growth has slowed during the last two industry worldwide. In fact, years, it is still the highest in the world. Total manyB industry analysts have labeled the first profits for China’s airline industry in 2011 alone 10 years of this century as the “lost decade,” are an estimated US$7.2 billion, accounting citing: for more than half the profits of the entire Massive layoffs, worldwide airline industry. Staggering financial losses, Leading the way are China’s “big three” Record numbers of bankruptcies and con- carriers — Air China, China Southern Airlines solidations, and China Eastern Airlines, followed by a Skyrocketing fuel prices, strengthening number of second-tier carriers. Declining consumer confidence, While expansion has been a major focus Widespread service disruptions attributed to of China’s aviation industry during the first pandemics, volcanic ash and wild weather decade, flexibility — the ability to adapt quickly patterns. to the volatile marketplace — continues to be Along with the challenges, the decade also a priority. brought myriad opportunities for the industry. China Eastern was the first Chinese civil The tragic events of Sept. 11, 2001, in the aviation company to be listed simultaneously United States, it appears, were the first of on the Hong Kong, New York and Shanghai many catalysts that drove airlines worldwide stock exchanges. It has carefully and success- to evaluate and fundamentally restructure the fully navigated the industry’s last few turbulent way they do business.
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