Air China (CA, Beijing Capital) chairman, Wang Changshun, has disclosed that his airline is not considering entering the Low Cost Carrier market "for the moment" adding that the domestic Chinese operating environment is not ideal for LCCs. Speaking on the sidelines of the recently ended IATA 69th AGM held in Cape Town, South Africa, Mr Wang went on to say that "Chinese carriers are not able to reduce costs relating to the introduction of aircraft, landing fees and fuel prices among others." On the issue of South African flights, Mr Wang said that Air China would only enter the South African in an "appropriate way at a right time if conditions permit." While China has often touted its strong economic, diplomatic, and in some cases historical, relations with Africa, Air China, its flag carrier, has yet to operate any scheduled flights to the continent.

Air China (CA, Beijing Capital) is set to acquire one hundred new aircraft from European manufacturer, Airbus Industrie (AIB, Toulouse Blagnac), in a deal worth USD8.9billion. Under the terms of the agreement, Air China will purchase 60 Airbus A320 aircraft for USD5.37billion with delivery due from 2014 to 2020. Subsidiary Shenzhen Airlines (ZH, Shenzhen) will also buy 40 A320s for USD3.48billion with delivery due between 2016 and 2020. Earlier this year, Air China firmed a USD4.8 billion order with US manufacturer, Boeing (BOE, Chicago O'Hare), for 31 aircraft due from 2014/2015.

Air China (CA, Beijing Capital) along with its unit, Shenzhen Airlines (ZH, Shenzhen), is to acquire one hundred Airbus Industrie (AIB, Toulouse Blagnac) aircraft, to "mainly consist of A320 narrow-bodies" in a deal that could be worth over USD9billion at list prices. The Airbus deal comes on the back of a move by the Chinese carrier in March to acquire two B747-8s, one B777-300(ER), 20 Next-Generation B737-800s and eight B777-Fs from Boeing (BOE, Chicago O'Hare) worth USD4.83 billion. The acquisition is part of the airline's plan to expand capacity and improve efficiency which will also result in the retirement of its four A340-300s.

China Southern Airlines (CZ, Guangzhou) may deploy its A380-800 onto flights between Guangzhou and Sydney Kingford Smith as early as October following "fruitless" talks with Air China (CA, Beijing Capital) over a possible Beijing Capital to Paris CDG route partnership. China Southern's Chief Financial Officer, Xu Jiebo, said his airline had been studying the feasibility of flights to Sydney but had deferred their launch pending the outcome of talks with Air China over the possible deployment of China Southern's A380s, first to Beijing, and then to Paris, planned to have launched in October 2012. The talks have since collapsed over a lack of common ground apropos flight-connecting times. As a result of the Chinese regulator's policy of avoiding direct or major competition among domestic players on key routes, since taking delivery of its A380s in 2011, China Southern has been forced to deploy the aircraft on domestic Chinese routes and on flights to Los Angeles Int'l.

Air China (CA, Beijing Capital) chairman Wang Shunchang has confirmed that the carrier in now in negotiations with China Southern Airlines (CZ, Guangzhou) about the wet-lease of two A380-800s to replace its own B777-300(ER)s on the daily service linking Beijing with Paris CDG. Air China and China Southern had originally planned to operate the service as a joint venture but have so far failed to receive approval from Chinese regulators.