Delta to help China Eastern in Beijing Daxing International Airport
Beijing - The new Beijing airport will increase the competition of the three state-owned airlines in China. China Eastern is now relying on a partner from the USA.
In 2019, Beijing's second international airport is set to open its doors. The new airport is expected to welcome 100 million passengers a year, according to plans, when it reaches its full capacity. The Beijing Daxing International Airport to become the new home for China Southern Airlines, whose base is currently Guangzhou, and for China Eastern, which is currently based in Shanghai. Air China will remain at the existing Beijing Capital Airport.
With this concentration in the capital, South China Morning Post expects a "murderous competition" between the three major state-owned airlines. However, China Eastern, the smallest of the three big companies, has now secured US aid: Delta Air Lines, based at the Hartsfield–Jackson, Atlanta, the world's largest airport, is to support China Eastern at the new airport with its experience.
China Eastern plans to deploy around 200 aircraft at the new base. Competitor China Southern plans 250 aircraft by 2025. The new infrastructure will give China Eastern a boost and enable it to build a larger network, said Delta's China boss Wong Hong.
We have a lot of experience in the US, we look forward to using this experience to work with China Eastern and expand into a market like Beijing,said Wong Hong, Delta's China Boss. He didn't remark how the partnership should look in detail..
A partnership between the two airlines already exists: Delta holds 3.55% of China Eastern and has a seat on the Supervisory Board. In addition, both airlines have shares in Air France-KLM. However, the other two major Chinese airlines also have partners in the United States: American Airlines invested in China Southern for the 2.76% of the company in March, and Air China has a codeshare agreement with United Airlines.