Next year could be called the Year of the Phoenix on the Chinese calendar. Air China, bearer of the Phoenix logo and the official carrier of the 2008 Olympic Games in Beijing, could see record profits during the second and third quarter thanks to the expected crowds of tourists.
But with competition for US-China travel becoming a high stakes contest, will Air China be in the industry spotlight for long?
Once the international division of the General Administration of Civil Aviation of China, Air China now serves 74 domestic destinations in China and 38 international cities in 22 countries. In the first six months of 2007 its stock rose 17.17 percent over the same period last year. It registered a 14 percent year-on-year increase in passengers in the first four months of 2007.
As Air China celebrated the seven-year anniversary of its nonstop service from Beijing to New York, the US Department of Transportation approved six new nonstop routes from China to the US in September.
Also looking at golden opportunities next year, DeltaAirlines announced that it will begin nonstop service from Atlanta to Shanghai on March 30, 2008.
Northwest, which has a code-sharing agreement with Air China, began nonstop service from Detroit to Beijing in 1996. Continental Airlines , flying from Newark, and United Airlines out of from Chicago are also battling for Chinese and American passengers headed for the Far East.
Competition from US-based airlines before held Air China at bay, but with the success of its nonstop flights, impeccable safety record - one accident in 50 years - and a revamped in-flight experience, sales are up 20 percent, according to sales manager Elio Usalj.
Zhao Xiancheng, general manager of Air China New York, was on Air China's first nonstop to New York on September 27, 2000. That flight laid the groundwork for the airline's growth in the US, as the company also developed daily non-stops from Los Angeles and San Francisco to Beijing. Five years into its non-stop service from JFK to Beijing, Air China is providing customers with greater comfort, convenience and luxury. It started with the idea of a direct flight.
"It was not convenient for passengers to go from New York to Beijing. They had to connect somewhere, either in Detroit with Northwest or on the West Coast. With a direct flight it's easy for them to go from here straight to Beijing in less than 13 hours, depending on the weather," Zhao says.
Since Zhao has presided over the growth of the airline's service and US customer base, Air China has boosted its passenger comfort, flight quality and service to new levels - so much so that he insists that their seats are much better than United's and that United has tried to emulate Air China's cabins.
Concerns were addressed and a global competitor was born. Zhao believes that Air China needed to improve, but British Airways and Air France led them to do it as the major international carriers were offering sleeper seats on their flights while Air China did not.
"First we raised our rates. Second we got very positive, important feedback from passengers. Third, more passengers came to first- and business-class," he says.
Usalj, who strongly believes Air China would benefit from creating a New York to Shanghai route, attributed New York's executives and business travelers with the success of premium seating.
"On the West Coast, tour groups are leading the way in sales, but here in New York it's first class and business class," Usalj says.
Air China's first class used to have 18 seats but it now has a maximum of 10 seats, and it was up to Zhao to decide whether it should be removed altogheter in favor of an all-business class. With the needs of passengers on long-haul flights, first class remained but was reintroduced with new amenities.
First class or "Forbidden Pavilion" features seats that can be adjusted to a lie-flat position and personal high-definition TV's with a selection of games, DVDs and CDs. Business class or "Capital Pavilion" features wide seats that recline 170 degrees with adjustable headrest supports.
Zhao says Air China's flights are nearly sold out for the Beijing 2008 Olympic Games, and "hot dates"- next summer into next fall - are mostly booked.
Yet Beijing Capital International Airport still needs more preparation. The International Herald Tribune reported that the airport handles 13 million more passengers a year than it was designed to support. Its current two terminals carried 48.7 million people in 2006 and projections are that up to 60 million could pass through its gates beginning next year.
Zhao says that extremely busy times will not hurt the airline's performance. He notes that Air China will move to Terminal 3, one of the world's biggest at 986,000 sq m. That will provide more space, more gates, transit areas, specialized procedures and better check-in and baggage claim services. "Operations will begin in February. We still have six months for testing the airport - plenty of time," he says.
In the spring of 2009 Air China is scheduled to debut nonstop service from Beijing to Washington D.C., Toronto, Manchester in the United Kingdom, Zurich, Dusseldorf, Vienna and Milan, and from Shanghai to San Francisco and Rome.
A 200-person central call center with representatives available 12 hours a day is also in the works. Zhao says it will most likely be located in Los Angeles.
