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Air China



Air China Ltd is a Chinese government owned and operated airline company. It is a flag carrier and sole airline licensed to fly People's Republic of China flag emblazoned on its entire aircraft fleet. Air China is ranked #872 on 2008 Forbes Global 2000 list.

Logo of Air China consists of a phoenix shaped like acronym VIP. 'Air China' is typed both in Chinese and English. Deng Xiaoping wrote Chinese version of this logo. Air China is listed in London (LSE:AIRC), Hong Kong (SEHK: 0753) and Shanghai (SSE: 601111) stock exchanges.

Brief history
Air China was founded on July 1, 1988. It was formed as a result of Chinese government deciding to split operating divisions of Civil Aviation Administration of China into separate airlines. Air China was granted responsibility for intercontinental flights.

After its inception in 1988, Air China started serving 30 domestic destinations and 31 international destinations. This airline entered into a joint venture with Lufthansa in 1989. This alliance led to formation of Ameco Beijing (Beijing Aircraft Maintenance Center). Catering on planes were done with help from private parties.

Deregulation of Air China took place in 1994. Air China posted a sales figure of USD 1.38 billion in 1997. It was then flying to 144 destinations and had 65 aircraft in its fleet. Approximately 16 million passengers flew Air China in 1998. Direct flights from Hong Kong to London began in 2000. It was made possible through a subsidiary, China National Aviation Co. Group (CNAC).

Operations and services
Air China operates four business divisions: engineering services, airport terminal segments and airline operations. Airline operations encompass passenger services and air cargo. Engineering services include aircraft overhaul, repair and maintenance. Airport terminal services include luggage handling and check-in operations.

Financials
Air China had a market capitalization of CNY 43,583.660 million in first half of 2008. Return on investment (ROE) was around 13.847. Operating revenue was around CNY 257.6 million. Net profit was CNY 996.33 million in 2008.

Awards and recognition
Air China has won numerous awards throughout its operational history. It was honored as 'Best Airline in China' by Security Exchange Weekly on March, 2007. It was also awarded 'Best Ground Handling Agent' in 2006 by Passenger Service Promotion Committee of Beijing Capital Airport.


Current financial crisis
Air China suffered substantial adverse financial impact during 2008 financial crisis. This was due to market meltdown, high fuel costs and fluctuations in price markets.