Shenzhen Airlines yesterday said it signed a purchase agreement with Airbus for 10 A320s and announced that it had an operating profit of CNY520 million ($79 million) in the first half, crediting strong domestic market demand growth and its merger with Air China for the result.

CA this year boosted its profile in the Pearl River Delta region by taking control of Shenzhen with a CNY682.1 million investment that raised its stake in the country’s fifth-largest carrier from 25% to 51% (ATW Daily News, March 23).

Shenzhen’s first-half 2009 financial figures are not readily available for year-to-year comparisons. But when announcing its takeover, CA said that Shenzhen suffered a full-year 2009 loss of CNY863.7 million that followed a 2008 deficit of CNY31.3 million.

Shenzhentransported 8.18 million passengers in the six months ended June 30, up 17% over the year-ago period, while cargo traffic volume climbed 22.3% to 102,400 tonnes.

The 10 A320s are expected to be delivered in 2012 and 2013. Currently, the carrier operates a fleet of 109 aircraft. “We aim to expand Shenzhen Airlines’ fleet to 180 by 2015,” CA Chairman Kong Dong said. He explained that “100 aircraft will be operated in Shenzhen airport as its second runway is scheduled to be operational next year, while the rest of the aircraft will be allocated to Shenzhen’s other domestic bases” comprising Nanning, Wuxi, Guangzhou, Changzhou, Shenyang and Zhengzhou.

Looking ahead, the carrier said it expects to reap benefits from the continued growth of domestic traffic. It plans to introduce five new aircraft in the second half of this year and 11 next year.

Source: atwonline.com