Summary
- China Southern to speculate $659 million in Sichuan Airlines, including a transfer of an Airbus A330-300, to complement working capital and reduce financial risks.
- Sichuan Airlines, based in Chengdu, operates from two airports in town and offers direct international services to numerous destinations, including Vancouver and Melbourne.
- Sichuan Airlines currently operates an all-Airbus fleet of 195 planes, with additional orders for Comac C919s and Airbus aircraft. It’s the parent company of Chengdu Airlines.
Chengdu-based Sichuan Airlines has welcomed the news that one among its largest shareholders, China Southern, will invest roughly CN 4.7 billion yuan ($659 million) into the carrier. The agreement may even include transferring an Airbus A330-300 to the fleet.
As noted in a filing from China Southern, the investment will occur over three separate tranches, starting mid-January, with a preliminary money investment of CN 2.3 billion yuan ($332 million); this can be followed by a mid-year transfer of a sole A330, and CN 919 million yuan ($128 million). The ultimate money injection is predicted to be transferred by March 2025.
Photo: Telsek | Shutterstock
More capital expected
Sichuan Airlines’ largest shareholder, China Southern, which currently owns 39% of the carrier, may even receive further capital from other shareholders, including Shanghai-based China Eastern, Beijing’s Air China, and an education group, Chengdu Gingko.
China Southern has reiterated its vision from the investment, which is to “complement working capital and reduce financial security risks,” plus increase Sichuans’ “scope of corporate development.” Once the capital infusion is accomplished, CN has confirmed that this mustn’t affect its money flow, and Sichuan Airlines will remain an associate airline.
Photo: Telsek | Shutterstock
The Chengdu-based carrier was making losses for 2022, hitting a net lack of CN 10 billion yuan ($1.4 billion), which exceeds greater than double for the troubled carrier in 2021.
Chengdu’s Recent Tianfu Airport – The whole lot You Need To Know
Taking off from two Chengdu airports
Town of Chengdu, home to greater than 16.3 million people, now has two airports where Sichuan Airlines operates. Chengdu Shuangliu International Airport (CTU), currently serving predominantly domestic traffic, was once the first airport serving town before the opening of Chengdu Tianfu International Airport (TFU), which now sees most international services to the town. From here, Sichuan Airlines operates direct international services to Bangkok, Cairo, Chiang Mai, Dubai–International, Ho Chi Minh City, Hong Kong, Istanbul, Kathmandu, Krabi, Los Angeles, Melbourne, Moscow–Sheremetyevo, Osaka–Kansai, Phuket, Rome–Fiumicino, Saint Petersburg, Seoul–Incheon, Singapore, Sydney, Taipei–Songshan, Taiyuan, Tokyo–Narita, and Vancouver.
Vancouver (YVR), Canada, was the primary long-haul service for the carrier, launched in June 2012 and closely followed by Melbourne (MEL), Australia, in February 2013.
An all-Airbus fleet
Data retrieved from ch-Aviation shows that the airline currently operates an Airbus fleet of 195 planes, including 18 inactive aircraft. Including:
Aircraft type |
Lively |
Inactive |
Average Age |
A319-100 |
23 |
– |
14.4 years |
A320-200 |
50 |
2 |
10.6 years |
A320-200N |
20 |
7 |
3.3 years |
A321-200 |
42 |
1 |
9.3 years |
A321-200(PCF) |
– |
1 |
20.9 years |
A321-200N |
15 |
5 |
4.5 years |
A321-200NX |
7 |
– |
1.8 years |
A330-200 |
4 |
– |
8.8 years |
A330-200F |
2 |
1 |
11 years |
A330-300 |
7 |
– |
8.2 years |
A330-300(P2F) |
1 |
– |
15.5 years |
A350-900 |
6 |
1 |
3.6 years |
The airline also has 20 Comac C919s on order, alongside a combination of further Airbus aircraft, including two A319-100N, one A320-200N, three A321-200N, and 7 A350-900.
Photo: Markus Mainka | Shutterstock
Sichuan Airlines is the parent company of domestic carrier Chengdu Airlines, based at Chengdu Shuangliu International Airport. It operates 75 aircraft across its fleet, including being the launch customer for the COMAC ARJ21-700.