Home > > China Southern raises $1.8 billion; Outbound travel grew 3.3% | Daily Brief

China Southern raises $1.8 billion; Outbound travel grew 3.3% | Daily Brief

06/22/2020| 9:11:57 PM| ChinaTravelNews

US denied a request by Chinese airlines to increase the number of flights; China's 600 km/h maglev vehicle completes trial run.

US regulator extends deadline for Shiji to sell StayNTouch

>> Chinese hospitality IT service provider Shiji announced that it has acquired permission from US regulator CFIUS to extend the deadline by three months for Shiji to sell its U.S.-based asset StayNTouch, a maker of hotel operational software. Shiji said it is currently in final discussions with multiple potential buyers for StayNTouch.

The company acquired 100% shares of StayNTouch in 2018, reportedly for a total price of USD 35 million. But in March this year, the Trump administration demanded Shiji to unwind its acquisition of StayNTouch, citing “threaten to impair the national security of the United States”.

US denies China extra passenger flights

>> The U.S. Department of Transportation denied a request by Chinese airlines to increase the number of flights allowed into the U.S. but said it was simply a procedural matter, not a provocation. Air China, China Eastern, China Southern and Xiamen Airways currently each operate one scheduled passenger flight per week to Los Angeles or New York.

China Eastern Airlines offers unlimited flight passes

>> China Eastern Airlines launched the first weekend-unlimited flight passes in the Chinese domestic market. With a price of RMB 3,322 (USD 469), a passenger can take flights from China Eastern Airlines and Shanghai Airlines to major China cities, with no limited times on any weekend in 2020. The airline apologized later for the crash on its website due to high traffic, implying the success of this product.

Though first in China, unlimited flight pass is not a new idea. Since the first quarter of 2020, a few airlines including AirAsia, Canada's Flair Air, VietJet Air and Bamboo Airways, had launched this type of product in the hope of increasing the sales for some cashflow under the impact of COVID-19.

China Southern Airlines raises $1.8 billion through new shares

>> China Southern Airlines raised RMB 12.8 billion (USD 1.8 billion) following the completion of its 2.4 billion A Share issuance. China Southern Air Holding Company Limited remained the state-controlled airline giant's largest shareholder after the deal, with a 63.16% stake. Chinese low-cost carrier Spring Airlines holds a 1.27%.  

Outbound travel from China surged 3.3% to 154.6 million

>> Overseas travel from China surged 3.3% to 154.6 million in 2019, while overseas tourists paid 145.3 million visits to China, an increase of 2.9%, according to data from the Ministry of Culture and Tourism. Last year, the country's tourism industry earned USD 935 billion in revenue, registering an annual growth of 11.1%, according to the report.

China's 600 km/h maglev vehicle completes trial run

>> A test high-speed maglev vehicle, with a speed of 600 km/h, successfully conducted a test run on a maglev line in Shanghai on Sunday, marking a new important breakthrough in China's high-speed maglev research and development. The maglev train can fill the gap between the current high-speed rail and aviation services and help to establish a more reasonable, efficient and flexible transport network to meet the travel needs of different groups.

TAGS: Daily Brief | outbound travel | maglev vehicle | Shiji | StayNTouch
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