Real pilot shortage on the Mainland
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Real pilot shortage on the Mainland
Published in SCMP. Friday, July 8, 2011
Spring Airlines reins in growth plan
Budget carrier says pilot shortage is cause for halving the number of planes it aims to have in the air by 2015
Bloomberg in Shanghai
Spring Airlines, China’s biggest low- cost carrier, slowed expansion because of a shortage of pilots in the world’s fastest-growing aviation market.
The airline now intends to have as many as 50 planes in service by 2015, compared with a previous target of 100, Chairman Wang Zhenghua said yesterday in an interview in Shanghai. The carrier may need to more than double its number of pilots from about 130 in the period, based on figures he gave.
“The shortage of pilots is a problem for the whole industry after years of rapid growth,” he said. “It is the biggest restriction to our development.”
The Shanghai-based carrier has already hired more than 20 foreign crewmembers to help fly its 24 Airbus SAS A320s, and it plans to support training for as many as 150 cadets a year to ease future growth, Wang said. Nationwide, China will need 72,700 new pilots over 20 years, according to Boeing Co., as airlines expand their fleets to support surging travel demand.
“The thing that is saving us a little bit at the moment is that America is slow, Europe is slow, and we can get some pilots from them,” said Peter Harbison, executive chairman of the Sydney-based Centre for Asia Pacific Aviation. “But that’s very short-term.”
Profit may decline from last year’s 470 million yuan ($73 million) after the Shanghai Expo helped boost fares in 2010. The airline has earned 160 million yuan of profit so far this year.
The carrier intends to hold a Shanghai initial public offering this year or next to support growth plans, Wang said. It has hired brokerages to arrange the sale, he said, declining to elaborate further.
“Shareholders want to see Spring have a good and stable development,” he said. “They don’t want to see any damage caused by overly aggressive expansion.”
The carrier has 10 A320s on order, according to Airbus’s website. Wang owns 30 percent of the airline, while managers and senior staff hold 65 percent. The remaining 5 percent is owned by the Shanghai Changning district government.
The airline, which began flights to Hong Kong last year, aims to add services to Taipei and is in talks to fly to Kyushu in southwestern Japan, Wang said. In total, it operates more than 50 routes, according to its website.
Spring also plans to phase out the sale of goods onboard planes because of complaints about noise, Wang said. The carrier will lose as much as 40 million yuan in net profit because of the move, which it intends to offset by winning more corporate passengers.
“We used to only care about price-sensitive leisure travelers, but now we want to tap business travelers who want good prices.”
Spring Airlines reins in growth plan
Budget carrier says pilot shortage is cause for halving the number of planes it aims to have in the air by 2015
Bloomberg in Shanghai
Spring Airlines, China’s biggest low- cost carrier, slowed expansion because of a shortage of pilots in the world’s fastest-growing aviation market.
The airline now intends to have as many as 50 planes in service by 2015, compared with a previous target of 100, Chairman Wang Zhenghua said yesterday in an interview in Shanghai. The carrier may need to more than double its number of pilots from about 130 in the period, based on figures he gave.
“The shortage of pilots is a problem for the whole industry after years of rapid growth,” he said. “It is the biggest restriction to our development.”
The Shanghai-based carrier has already hired more than 20 foreign crewmembers to help fly its 24 Airbus SAS A320s, and it plans to support training for as many as 150 cadets a year to ease future growth, Wang said. Nationwide, China will need 72,700 new pilots over 20 years, according to Boeing Co., as airlines expand their fleets to support surging travel demand.
“The thing that is saving us a little bit at the moment is that America is slow, Europe is slow, and we can get some pilots from them,” said Peter Harbison, executive chairman of the Sydney-based Centre for Asia Pacific Aviation. “But that’s very short-term.”
Profit may decline from last year’s 470 million yuan ($73 million) after the Shanghai Expo helped boost fares in 2010. The airline has earned 160 million yuan of profit so far this year.
The carrier intends to hold a Shanghai initial public offering this year or next to support growth plans, Wang said. It has hired brokerages to arrange the sale, he said, declining to elaborate further.
“Shareholders want to see Spring have a good and stable development,” he said. “They don’t want to see any damage caused by overly aggressive expansion.”
The carrier has 10 A320s on order, according to Airbus’s website. Wang owns 30 percent of the airline, while managers and senior staff hold 65 percent. The remaining 5 percent is owned by the Shanghai Changning district government.
The airline, which began flights to Hong Kong last year, aims to add services to Taipei and is in talks to fly to Kyushu in southwestern Japan, Wang said. In total, it operates more than 50 routes, according to its website.
Spring also plans to phase out the sale of goods onboard planes because of complaints about noise, Wang said. The carrier will lose as much as 40 million yuan in net profit because of the move, which it intends to offset by winning more corporate passengers.
“We used to only care about price-sensitive leisure travelers, but now we want to tap business travelers who want good prices.”
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They are short of pilots because the global pilot population has realized that a chinese contract is worth less than toilet paper. They can promise you the sky, and probably will, but it is just words on paper in the mainland.
The problem is, once you get a reputation like this it is very hard to shake it. Even if a carrier chose to honor and abide by their employment contract, it is still tainted by the abuse of others.
And by the way, Hong Kong is no different than the mainland. Just look at all the abuses against the 49ers and even more recent cases. Keep in mind that a court in HKG found executives of Cathay GUILTY of perjury yet did not charge them for it!
Different part of the world boys and girls, keep it mind when coming over.
The problem is, once you get a reputation like this it is very hard to shake it. Even if a carrier chose to honor and abide by their employment contract, it is still tainted by the abuse of others.
And by the way, Hong Kong is no different than the mainland. Just look at all the abuses against the 49ers and even more recent cases. Keep in mind that a court in HKG found executives of Cathay GUILTY of perjury yet did not charge them for it!
Different part of the world boys and girls, keep it mind when coming over.
