Congestion at China’s three major international airports–Beijing Capital, Shanghai Pudong and Guangzhou Baiyun–has quashed Xiamen Airlines’ plans to offer long-haul nonstop flights from the People’s Republic using Boeing 787s starting next August. Increasing demand for slots from foreign airlines and China’s four big carriers to operate point-to-point services from the three big airports leaves smaller carriers such as Xiamen no choice but to look at other Chinese cities as ports of entry into China.
China’s Xiamen Airlines has signed a letter of intent with GE Aviation for GEnx-1B engines to power its six Boeing 787s, along with a 10-year service agreement for the airline’s GEnx-powered fleet. The list price of the order and service agreement is valued at more than $560 million. Delivery of the aircraft is to begin incrementally starting in July 2014.
Boeing is preparing to invest more than $100 million in a new MRO joint venture in Shanghai. The U.S. airframer will have a 50-percent stake, with the balance held by Shanghai Airlines and Shanghai Aviation Authority, according to David Wang, president of Boeing China.