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China's Hainan Airlines Co., partly owned by financier George Soros, climbed back into the black last year and was looking at doubling its fleet size to 200 aircraft by 2010, the group's chairman said.
The group's listed unit, the carrier based on the sun-drenched resort island of Hainan, had made a 2004 net profit of 200 million yuan to 300 million yuan (US$24 million to US$36 million), group chairman Chen Feng said.
"We had an exceptional year," the executive said. Revenue last year had been 8 billion to 9 billion yuan, up from 5.33 billion in 2003, he said.
The company was currently restructuring after absorbing three smaller carriers, and the airline would change its name to Grand China Air by the end of 2005, Chen said.
Part of the seven-year restructuring plan, which began last year, would be the opening of more routes and the addition of new aircraft.
"We're too small," said Chen. "We want 200 aircraft. If we're too small there's not much we can do."
That would represent big potential orders for aircraft makers Airbus SAS and Boeing Co.
Hainan Air has China's fourth-largest fleet of civil aircraft, just over 100 aircraft. China Southern Airlines Co., China Eastern Airlines Ltd. and Air China are all bigger.
Hainan Air was also talking to foreign and domestic strategic investors, he said, and could not rule out an overseas listing as part of the reorganization. But he gave no details.
Chen said Hainan Air had already won approval to start flights to the United States, though he didn't disclose when those would begin or what other international routes it was eyeing.
"We'll fly to wherever we're allowed," he said.
Once mainly a domestic airline, Hainan Air has spread its wings to Bangkok, Kuala Lumpur and even Budapest.
But Chen ruled out looking overseas for acquisitions. "The domestic market is so good. Why should we go shopping overseas?" said 52-year-old Chen, who took his first flight when he was 15.
(Shenzhen Daily March 8, 2005)
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