This article is from WeChat official account:Wings of Civil Aviation (ID: caacwing) , of: a Ka words, the subject map from: IC photo

The South of Colorful Clouds.

I am afraid that among all the provinces in the country, no name is more poetic and picturesque than Yunnan.

There are many places in Yunnan Province that are enough to attract people to visit by name alone.

Shangri-La, Xishuangbanna, Lijiang, Dali…

Fuxian Lake, Lugu Lake, Erhai Lake, Dianchi Lake…

Jade Dragon Snow Mountain, Meili Snow Mountain, Balagezong Snow Mountain…

From these names, it can be seen that Yunnan must be a sacred place for tourism.

Although there have been a lot of negative news about Yunnan tourism, tourism in Yunnan is still the first choice of many people.

Yunnan has many mountains and underdeveloped ground transportation, so the first choice for travel to Yunnan must be airplane.

So, although Yunnan’s economy is underdeveloped, the development of the civil aviation industry in Yunnan has always been at the forefront of the country.

From the perspective of passenger throughput, Yunnan Province has always been among the best, overwhelming many economically strong provinces and major tourist provinces.

In 2019, the passenger throughput of Yunnan Province was 70.52 million, ranking 4th in the country after Guangdong, Shanghai and Beijing.

The number of people flying to Yunnan is not only higher than Zhejiang, Jiangsu, Shandong and other economically powerful provinces, but also higher than that of large tourist provinces like Sichuan.

From the perspective of the number of people flying by plane, Yunnan is still very powerful.

I. There are many airports in Yunnan

Yunnan has beautiful scenery, many mountains and inconvenient ground transportation. Therefore, Yunnan has built many airports.

From a national perspective, YunnanThere are only fewer airports in Xinjiang than in Xinjiang and Inner Mongolia, but the airport density is much higher than in these two places.

Currently, There are 15 airports in Yunnan, with an average of 26,000 square kilometers per airport.

Kunming Changshui, Lijiang Sanyi, Xishuangbanna Gasa, Dali, Baoshan Yunrui, Tengchong Tuofeng, Pu’er Simao, Lincang, Lancang Jingmai, Diqing Shangri-La, Zhaotong, Cangyuan Wa Mountain, Wenshanpu 15 airports including Zhehei and Ninglang Lugu Lake.

In 2020, the passenger throughput of Yunnan’s airports was 49.84 million, a year-on-year decrease of 29.33%, which was far smaller than the industry average and performed well.

Among them, Kunming Changshui ranks 6th in the country with a passenger throughput of 32.99 million passengers.

In addition, Lijiang Sanyi Airport has 5.04 million passengers, ranking 45th in the country.

Xishuangbanna Gasa Airport has 4.09 million passengers, ranking 48th in the country.

Dehong Mang City Airport has 1.89 million passengers, ranking 56th in the country.

Dali Airport has 1.31 million passengers, ranking 72 in the country.

Baoshan Yunrui Airport has 980,000 passengers, ranking 86th in the country.

Tengchong Tuofeng Airport is 770,000 passengers, ranking 99 in the country.

Among the top 100 airports, Yunnan Province accounts for 7 of them, indicating that the overall strength of Yunnan’s airports is relatively strong.

The production situation of Yunnan Airport in 2020

Second, the airline fled Yunnan?

The development of Yunnan’s aviation market is very distinctive. It focuses on the tourism market and also has international transit to Southeast Asia, but it is also mainly tourism.

The tourism market has low prices and fierce competition.

In a sense, Yunnan was the first province to have local airlines.

Many people are optimistic about the aviation market in Yunnan, so they have established airlines.

Yunnan has become the province with the largest number of main base airlines in China, and the competition is not without fierce.

At a time, there were as many as six airlines with independent carrier qualifications, which is in sharp contrast to many provinces where there are no airlines.

China Eastern Airlines Yunnan Company, Lucky Air, Kunming Airlines(under Shenzhen Airlines), Ruili Airlines, Hongtu Airlines, British Airways, in addition to China Southern Airlines, Companies such as Sichuan Airlines also entered heavily.

So it is very difficult to make money in the Yunnan market.

As a result, Yunnan airlines have left Yunnan in recent years. For example, Hongtu Airlines became Hunan Airlines and Ruili Airlines was acquired by Wuxi State-owned Assets Supervision and Administration Commission.

In addition, British Airways was revoked as an air carrier by the Civil Aviation Administration, and Lucky Air was bankrupt and reorganized due to the drag of HNA.

The once-hot Yunnan civil aviation industry seems to be in a trough.

Not only does it give people a sense of airlines fleeing Yunnan, but what happened to Yunnan airlines?

1. The road to reorganization of Yunnan Airlines

Yunnan Airlines was established in 1985 and was called Yunnan AirlinesUnder the dual leadership of the Civil Aviation Administration of Chengdu and the Yunnan Provincial Government, it is the first local airline of China’s civil aviation.

In 1992, it was renamed China Yunnan Airlines.

Picture from Wikipedia

At that time, Yunnan Airlines and the airports in Yunnan Province were one unit, so they also managed 8 airports in Yunnan Province.

Brother Yi remembers that when he was in school, a foreign teacher at the school once told us that he thought that the best airline in China at that time was Yunhang.

After working, everyone envied Yunhang’s classmates. First, they had high income, second, good welfare, and third, high status in Kunming.

Of course, an important reason for the high level of profitability of Yunhang is that the airlines in Yunnan Province can only fly by Yunhang alone.

At that time, traveling to Yunnan was very hot.

At that time, there were a dozen flights a day on the Kunming-Xishuangbanna route, almost full without discounts.

Except for one of these dozen classes, which is operated by Xinhua Airlines, the others are operated by Yunhang.

In 2002, the civil aviation industry initiated the largest reorganization and integration to date.

Including the establishment of three major aviation groups.

Yunhang was reorganized by China Eastern Airlines and became today’s Eastern Airlines Yunnan Company.

Later, the Yunnan SASAC increased its capital in China Eastern Airlines Yunnan Company.

Currently, China Eastern Airlines Yunnan Company has a registered capital of 3.66 billion yuan, with China Eastern Airlines accounting for 65% and Yunnan State-owned assets accounting for 35%.

China Eastern Airlines Yunnan Company still retains the qualification of an independent carrier, but the two or three-character codes areThe parent company used by China Eastern Airlines.

At present, China Eastern Airlines Yunnan Company manages a total of 82 aircraft and has the largest domestic B737 fleet.

It is worth noting that China Eastern Airlines Yunnan Company also owns 3 B787 aircraft.

At present, China Eastern Airlines Yunnan Company is the largest main base airline in Kunming and even Yunnan.

Picture from Wikipedia

2. Lucky Air’s bankruptcy and reorganization

In June 2004, Lucky Air’s predecessor, Yunnan Shilin Airlines, was established with a registered capital of 770 million yuan at the time of establishment, of which:

HNA invested 377 million yuan, accounting for 48.87%;

Shanxi Airlines invested 390 million yuan, accounting for 51.00%;

Yunnan Shilin Air Travel Service invested 1 million yuan, accounting for 0.13%.

On May 10, 2005, Shilin Airlines changed its name to Yunnan Lucky Air.

In February 2006, Lucky Air’s maiden flight.

In May 2008, Lucky Air became a wholly-owned subsidiary of Grand China Air.

In June 2008, the Yunnan Provincial State-owned Assets Supervision and Administration Commission invested 235 million yuan in shares, accounting for 32%. Since then, Yunnan Provincial State-owned Assets Supervision and Administration Commission has become a shareholder of Lucky Air.

In 2014, Lucky Air Chengdu Branch was established. Since then, Lucky Air has seized the best terminal of Southwest Civil Aviation.

2016, Lucky Air officially transformed into a low-cost airline.

After several equity transfers, Lucky Air’s total equity is currently 3.495 billion yuan. The equity structure is as follows.

HNA Holdings holds 70.1923% of the shares.

Yunnan Pengxia Yuanhao Investment, which is controlled by China Securities Co., Ltd., holds 16.4893% of the shares.

Yunnan State-owned Enterprise Yunnan Provincial Communications Construction holds 13.3184% of the shares.

Currently, Lucky Air’s fleet size is 51, of which:

12 Airbus A320 series

5 Airbus A330-300s

34 Boeing B737 series

In March 2016, Lucky Air announced the transformation of low-cost airlines and gradually grew into one of the important participants in the civil aviation industry in Southwest China.

From 2015 to 2017, Lucky Air’s performance was good.

But there has been a downward trend since then.

In 2019, Lucky Air’s revenue was 7.62 billion yuan, and the net profit was -130 million yuan.

Entering 2020, the liquidity crisis and the impact of the epidemic have brought a very big impact on Lucky Air.Impact.

In the first half of the year, Lucky Air’s total profit was -1.65 billion yuan, and the net loss was 1.403 billion yuan, which was higher than that of Shandong Airlines and Shanghai Airlines, which are much larger than their own.

It is not difficult to find that Lucky Air in the first half of the year was extremely difficult.

Entering the third quarter, as the domestic civil aviation industry continued to pick up, Lucky Air quickly stopped its revenue decline, and Lucky Air’s performance was still very outstanding. .

The total profit in the third quarter was 210 million yuan, which is one of the few domestic airlines that can achieve profitability, and the amount is not small.

Lucky Air’s performance has improved.

However, affected by the overall liquidity crisis of HNA, Lucky Air is also unable to survive alone.

On February 10, 2021, the Hainan Provincial Higher People’s Court held that:

Lucky Air is seriously inadequate in funds, has difficulty in realizing property, is unable to pay off due debts and is obviously lack of solvency, which meets the requirements for reorganization.

and rule:

According to relevant regulations, it was ruled to accept creditors’ applications for bankruptcy and reorganization of Lucky Air, and the HNA Group’s liquidation team was appointed as the administrator.

3. Clay Air’s renaming road

Hongtu Airlines was established in March 2015 and officially put into operation on May 21, 2016.

Flying Hongtu Airlines quickly faced several major problems:

One is the conflict between shareholders.

Hongtu Airlines has many shareholders, and the composition of directors is more complicated.

In addition, many small shareholders themselves are not strong in their financial strength, and various disputes between shareholders and external parties can easily involve Hongtu Airlines. In 2017, many lawsuits broke out.

The second is the lack of a professional management team.

The shareholders of Hongtu Airlines are all ticket agents and freight forwarders, and they are concerned about how to operate and manage airlines.Not good at it.

From the very beginning, Hongtu Airlines encountered problems such as low aircraft utilization and poor operating conditions. The most troublesome problem was the repeated problems in safety.

The bureau has imposed penalties on Clay Air on many occasions.

Thirdly, continuous development is under pressure.

In the initial stage of airlines, most of the losses are relatively serious, which requires strong financial support at the shareholder level. However, the overall strength of the shareholders of Hongtu Airlines is relatively weak, and it is difficult to meet the development needs of Hongtu.

In addition, the shareholder’s involvement in Hongtu Airlines due to the borrowing dispute has also seriously affected the development of Hongtu.

Hongtu Airlines, which made its maiden flight in 2016, did not introduce a single aircraft in 2017.

In July 2017, there were two major events in Hongtu Airlines.

First, Tongcheng became a controlling shareholder.

The second is to introduce a professional civil aviation senior management team.

However, Hongtu Airlines did not realize the strategic synergy with Tongcheng as expected. In addition, the development of the civil aviation industry is facing greater challenges, and Hongtu Airlines is also facing a development dilemma.

Maybe relying on state-owned assets is the best choice.

In 2019, Hunan state-owned assets entered the red soil, accounting for 26% of the shares.

On December 1, 2020, Hunan Airlines completed the supplementary operation certification work, obtained the operation certificate after the main operating base and the name of the air carrier were changed, and all the rename procedures were completed.

From “Yunnan Hongtu Airlines” officially changed its name to “Hunan Airlines”, Hunan officially ushered in the first local airline.

Currently, Hunan Airlines operates 14 A320 series aircraft.

Picture from: Hunan Airlines official website

4. Ruili Airlines from private to state-owned

In May 2013, Yunnan Jingcheng Group prepared for the establishment of Ruili Airlines.

On May 18, 2014, it was officially put into commercial operation.

In the early days of its establishment, Ruili Airlines had a relatively fast development speed. In only three years of work, it had 15 aircraft in 2017.

However, Ruili Airlines has slowed down after 2017.

In the first three years of its establishment, 15 aircraft were introduced, and only 5 aircraft were introduced in the following three years. Currently, there are 20 B737 aircraft.

Ruili Airlines has also encountered a dilemma of greater financial pressure, coupled with the impact of the epidemic, facing an existential crisis.

On August 4, 2020, Ruili signed an agreement of intent with the Wuxi Municipal Government to transfer the controlling rights to Wuxi State-owned Assets.

On January 15, 2021, Wuxi Transportation Group acquired the shares of Ruili Airlines to complete the industrial and commercial change registration.

The original major shareholder Jingcheng Group’s shareholding ratio dropped from 70% to 13%.

Dong Lecheng holds 30% of the shares.

Wuxi Transportation Industry Group becomes the new major shareholder with a 57% shareholding ratio.

This is the first case in which a state-owned enterprise in Jiangsu Province has acquired a private airline. Wuxi has thus become the first city in Jiangsu Province to have a local airline.

Picture from: Wikipedia

5. The mystery of British Airways’ disappearance

Nowadays, most people don’t know that there was an airline company named Ying’an in Yunnan.

In December 2010, the Civil Aviation Administration of China issued a public announcement regarding the proposed approval of Yunnan Ying’an Airlines Co., Ltd., and the predecessor, Yunnan Ying’an General Aviation Co., Ltd. officially changed its name and set foot in a public air transportation company.

In April 2014, British Airways made its maiden flight.

According to the plan, Yunnan British Airways will use the Xinzhou 60 aircraft as a development platform to make full use of Yunnan’s location, region, topography, resources, and route advantages to develop Yunnan’s regional aviation.

And build a feeder route network with Yunnan as the center and radiate surrounding areas, making the Yunnan feeder route network a fast air route connecting Southeast Asian countries and China’s southwestern region for bilateral tourism and economic and trade development.

However, no matter how perfect a plan is, the cruel reality is hard to beat.

Due to the large loss of management personnel and professionals of British Airways, it does not meet the requirements of safe operation.

On December 24, 2015, Civil Aviation decided to cancel the business license of Yunnan British Airways Public Air Transport Enterprise.

In less than two years of sailing, it quickly “fallen down”, and British Airways has become the shortest-lived airline in the history of my country’s civil aviation.

6. The challenge of Kunming Airlines

On February 25, 2007, Kunming Airlines was established by Shenzhen Airlines(80%), Wang Qingmin(20%) is jointly funded and established with a registered capital of RMB 80 million.

Mainly engaged in domestic air passenger and cargo transportation business, officially put into operation on February 15, 2009.

Currently, Kunming Airlines is in charge of 30 aircraft, all of which are B737 series aircraft, of which twoA B737 aircraft.

The scale of the five original base airlines of Kunming Airlines in Yunnan is second only to China Eastern Airlines Yunnan and Lucky Air, higher than Ruili Airlines and Hongtu Airlines, ranking third.

12 years of development, the scale of 30 aircraft.

This speed is not slow, but it is not fast either.

Actually, the current role of Kunming Airlines is a bit embarrassing. The scale is small, but not small.

In 2019, when the civil aviation industry was still in the business cycle, Kunming Airlines had revenue of 3.608 billion yuan and a loss of 38 million yuan.

3. Why did the airlines flee Yunnan?

Objectively speaking, there are too many airlines in Yunnan, not less.

For Yunnan, which has a throughput of 70 million passengers, five airlines, and many branch companies, this kind of market share is too scattered, which is not conducive to the development of an aviation hub in Yunnan, especially Kunming Airport.

From a global perspective, any excellent aviation hub is built with one or two main base airlines.

Too many airlines will only cause homogeneous and inefficient competition.

Everyone will only dig into the homogeneous routes with high revenue, no one will think about building a network and building a hub.

Because it takes time to build a network and build a hub, it also requires cost investment.

You have worked so hard to build a hub here, and new entrants simply copy your high-quality routes to lower your income quality. How can you have the motivation to build a hub?

From the point of view of Brother Yi, there are essentially three types of airline passengers in the Yunnan market.

One is OD passenger.

That is, passengers from other cities directly to the airport in Yunnan Province, of which Kunming travels to and from Kunming.

The second is domestic transit passengers.

After arriving at Kunming from other airports, transfer passengers from airports in Yunnan Province through Kunming Airport.

Because Yunnan is rich in tourism resources, there are many small and medium-sized airports in the province, and transit through KunmingThe number of passengers is also a lot.

The third is international transit passengers.

Passengers transferring to Southeast Asia through Kunming Changshui Airport.

Because Kunming is located in the southwest, it is a better choice for other cities in China to transit to Southeast Asia via this.

Among them, direct passengers are the foundation of Yunnan civil aviation, domestic transit is the advantage of Yunnan civil aviation, and international transit is the development direction of Yunnan civil aviation.

The problem is that the Yunnan market has strong tourism attributes and low prices. In addition, the Southeast Asia route is one of the lowest quality routes.

If Yunnan Civil Aviation does not rely on a single main base airline to integrate, increase market share, grasp a certain degree of dominance, and build a transit market from home and abroad to Southeast Asia on this basis, this market will only be handed over.

How can it be possible to build an aviation hub by relying on 5 or 6 airlines to fight price wars.

Moreover, the competition in the hub is a higher level of competition. It is not only a competition for ticket prices, but also a competition for transfer efficiency, and it is also a competition for comprehensive strength in shopping and travel during the transfer period.

More importantly, everyone is now engaged in hubs. In fact, it is a competition among many large international airports. If Yunnan is not integrated, how can it be possible to build an aviation hub for Southeast Asia.

So the Yunnan aviation market is in urgent need of integration.

Neither Hongtu Airlines nor Ruili Airlines, withdrawing from the Yunnan civil aviation market is a good thing for the Yunnan civil aviation industry.

Similarly, if we seize the opportunity of Lucky Air’s bankruptcy and reorganization, if the Yunnan local government can play a role and play an integrated role, it will definitely be a great thing for the Yunnan civil aviation market to integrate Lucky Air with China Eastern Airlines Yunnan Company.

Once this is the case, it can fill the market gap left by the withdrawal of Hongtu Airlines and Ruili Airlines, and integrate existing resources to increase the market share of Yunnan’s main base airlines to more than 50%. Then Yunnan, especially Only Kunming Changshui Airport has the foundation to build an aviation hub, and it has the strength to challenge other large aviation hubs.

Of course, this is just wishful thinking of Brother Yi.

This idea is basically impossible to realize.

Therefore, many airports, including Kunming Changshui Airport,To build an international aviation hub is a long way to go, and it cannot be achieved overnight.

The epidemic is a danger to the civil aviation industry, and it is also an opportunity for the civil aviation industry. Originally, the civil aviation industry could take this opportunity to integrate.

It’s a pity that such a window opportunity was abandoned in vain.

This article is from WeChat official account:Wings of Civil Aviation (ID: caacwing) , author: Yoshiyuki a language