Chinese airlines plan stricter cost control on yuan, competition
Airlines in China plan to exercise stricter control over their costs and debt structures as part of measures to cope with a weaker yuan and stiffer competition. China Eastern Airlines will strengthen research on oil prices and exchange rates, the carrier said Tuesday, a day after China Southern Airlines said it will consider hedging for fuel. Air China is transforming its business model in response to “intensified industry competition,” it said Tuesday. The nation’s ‘Big Three’ airlines saw passenger yield drop during the first 6 months of this year as they expanded routes globally. They also saw their combined foreign-exchange losses widen to CNY4.9b (US$733m) in the period following a surprise devaluation of the Chinese currency in Aug 2015. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-09-01/sky/chinese-airlines-plan-stricter-cost-control-on-yuan-competition
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Chinese airlines plan stricter cost control on yuan, competition
Airlines in China plan to exercise stricter control over their costs and debt structures as part of measures to cope with a weaker yuan and stiffer competition. China Eastern Airlines will strengthen research on oil prices and exchange rates, the carrier said Tuesday, a day after China Southern Airlines said it will consider hedging for fuel. Air China is transforming its business model in response to “intensified industry competition,” it said Tuesday. The nation’s ‘Big Three’ airlines saw passenger yield drop during the first 6 months of this year as they expanded routes globally. They also saw their combined foreign-exchange losses widen to CNY4.9b (US$733m) in the period following a surprise devaluation of the Chinese currency in Aug 2015. <br/>
