Company Watch - Business in China.

 
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New York (AirGuideBusiness - Company Watch) Oct 16, 2011

A survey of IT service providers in 50 countries finds that companies are relying less on India for their outsourcing needs, with many transitioning to locales that are closer to their clients -- a trend called "nearshoring" -- or in some cases shifting work back to their home countries, including the U.S. Respondents to the survey, conducted by Duke University, said the shift is being driven in part by the rise of new offshoring entrants such as China and Chile. The increased competition is stressing earnings growth for Indian outsourcers, which saw profit margins decline 8 percentage points between 2007 and 2010. Oct 13, 2011

The U.S. Department of Energy hopes to give America a competitive boost with a new push to create the world's fastest supercomputer -- a distinction currently held by China. The Titan, which is being developed at the DOE's Oak Ridge National Laboratory, will employ graphic-processing units typically used for high-end gaming and will be capable of processing a thousand trillion operations per second. Nvidia and Advanced Micro Devices have been chosen to supply chips for the Titan, which is expected to be complete next year Oct 12, 2011

Air China Launches Airport Self Check-in Available at Haneda Tokyo. Since being named the pilot carrier of IATA's "Easy Travel" project in 2009, Air China had made airport self check-in available to its passengers at Tokyo Narita Airport, Hong Kong Airport and Frankfurt Airport outside Mainland China by December of this year. On November 21, 2011, Air China added Tokyo Haneda Airport to the list. The user-friendly system, which features Chinese, English and Japanese, also supports transfer to other domestic Chinese cities via Beijing. It allows passengers to select their preferred seat, accrue Air China kilometers and print boarding pass, sparing them the trouble of having to queue in front of the traditional check-in counters. Oct 12, 2011

Air China will launch 2 weekly rotations between Beijing and Okinawa using 737-800, starting January 11, 2012. The new service will bring the number of Japanese cities served by Air China up to 8 and the number of round-trip direct flights a week between the two countries up to 260. The other 7 Japanese cities are Tokyo, Osaka, Nagoya, Fukuoka, Hiroshima, Sendai and Sapporo. Sitting on the coast of the Pacific Ocean, Okinawa is one of the world's most visited destinations that boasts beautiful sceneries, mild climate and rich cultural heritage. Oct 11, 2011

Air China will introduce four weekly direct rotations with 757 airliner between Beijing and Phuket, Thailand starting November 18. Oct 10, 2011

Air China to Open Rotations Beijing-Okinawa. Air China will launch 2 weekly rotations between Beijing and Okinawausing 737-800, starting January 11, 2012. The new service will bring the number of Japanese cities served by Air China up to 8 and the number of round-trip direct flights a week between the two countries up to 260. The other 7 Japanese cities are Tokyo, Osaka, Nagoya, Fukuoka, Hiroshima, Sendai and Sapporo. Sitting on the coast of the Pacific Ocean, Okinawa is one of the world's most visited destinations that boasts beautiful sceneries, mild climate and rich cultural heritage. In addition to commercial operations, it also provides special flight services for the country's state leaders on official visit to other countries. By a fleet of 290 Airbus and Boeing aircraft (including 280 passenger airliners and 10 freighters), 1 training planes and 6business jets, we run 285routes - 72 international, 14 regional, and 199 domestic - serving a total of 137 cities, including 43 international, 4 regional and 93 domestic, in 30 countries and regions. We offer over 6,900 flights with over 1, 100,000 seats every week. Thanks to our admission to the Star Alliance, our route network, with Beijing as its hub, is able to place 1,160 destinations in 181 countries within our reach. Oct 11, 2011

Beijing cuts domestic jet fuel prices by 2.2%. The Chinese government cut domestic jet fuel prices to CNY7,503 ($1,174) per ton, down 2.2% from CNY7,670 in September, the second price reduction this year. Fuel costs comprise more than 40% of Chinese carriersO operating expenses. China Southern Airlines, which operates 80% of its flights on domestic routes, could see fuel costs reduced by CNY440.5 million annually because of the change. Air China and China Eastern Airlines, which operate 70% of their flights on domestic routes, could see annual fuel costs cut by CNY373.7 million and CNY384.1 million, respectively. Since July, Beijing has made monthly adjustments to domestic fuel prices based on fluctuating international fuel prices. With the cut in domestic jet fuel prices, Chinese carriers are reducing fuel surcharges correspondingly. ChinaOs big three carriers are reportedly considering restarting fuel hedging, but first must receive government approval. Oct 11, 2011

Arik Air orders two 747-8Is. Nigeria's Arik Air was revealed as the previously unidentified customer for two Boeing 747-8 Intercontinental aircraft. It joins Korean Air and Lufthansa as airlines with the passenger version of the 747-8 on firm order. The order is valued at $635 million at list prices. Boeing has sold 36 747-8Is including nine for VIP customers. In addition, Air China earlier this year announced its intention to order five 747-8Is. Lagos-based Arik carried just over 1 million passengers in the 2011 first half. It operates 120 flights daily. It said it plans to use the 747-8Is on "key long-haul routes." It currently operates A340-500 flights from Lagos to both London Heathrow and New York JFK. According to the carrier, it has traffic rights to Johannesburg, Houston, Paris and Beijing. Oct 10, 2011

Boeing Opens China Service Center in Beijing. Boeing opened a new service center in Beijing today to provide enhanced product support to China's growing commercial aviation industry. The new Boeing China Service Center comprises highly qualified pilots and experts in flight operations, spare parts and maintenance engineering who are dedicated full-time to serving airlines in China. With Beijing-based experts who are fluent in Chinese and knowledgeable about customers' concerns and issues, the team will enhance Boeing's day-to-day support of more than 800 Boeing airplanes currently in service in China. The Boeing China Service Center also will work closely with the Boeing engineering teams in Seattle, Wash., and Long Beach, Calif., on unique customer requirements and to develop products and services to further the reliability, efficiency and safety of the Chinese commercial airline fleet. "The center is another important step in the overall partnership of Boeing with China," said Boeing China PresidentMarc Allen. "Having a support center in China will help us bridge language and time-of-day barriers." Boeing projects that China's demand for air travel will grow at an annual rate of 7.6 percent during the next 20 years, creating the need for more than 5,000 new airplanes by 2030. Oct 11, 2011

Boeing Unveils Newest Business Jet for Chinese Charter Market. Boeing Business Jets unveiled the latest BBJ to enter the Chinese charter market at the National Business Aviation Association (NBAA) conference in Las Vegas this week. The new BBJ, owned and operated by Deer Jet of Beijing, is the second of four BBJs for the airline making it the largest BBJ charter operator in China. "BBJ can carry more people than traditional business jets, as well as having cabins that are around twice as wide with unequaled comfort, space and freedom of movement, which makes them ideal for carrying business teams," said Steve Taylor, BBJ president. BBJ customers work with designers and interior completion centers to develop personalized interiors. The interior of Deer Jet's new BBJ was completed by Associated Air Center of Dallas, Texas and features 28 seats, a bedroom suite and full sized bathroom with a shower.

Korean Airlines, Beijing Airlines and Metrojet also charter BBJs in Asia. Sales of BBJs to private individuals in Asia are extremely strong as well. One reason is that the BBJ can fly further than its competitor's airplanes. Range is very important to buyers in the region, due to the great distances from Asia to Europe and North America. Oct 10, 2011

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