With the Annual Report of China Air show, the three aircraft was exposed to the Economic Information Daily in public view, China Southern Airlines lost 4.829 billion yuan, 13.928 billion yuan loss of Eastern Airlines, Air China lost 9.149 billion yuan, the total loss of three aircraft 27.906 billion yuan, which General Administration of Civil Aviation of China is the highest in the history of the three aircraft loss records. According to IATA statistics, in 2008 the global airline industry loss of 8.5 billion U.S. dollars, which means that the total losses of China’s three major aviation aircraft account for the global rate of 48.1% of total losses.

However, very careful investigation of the annual report is not tough to find three airplane, three airplane in 2008 involved in a “one-loss enough” of supposes, in supplement to all the Oil futures deficiency into the decrease of ride high, but furthermore have a large provision for impairment . With the heating of the first quarter of municipal aviation market, which for the three airplane recovery presentation in 2009 has prepared a good foundation.

Provision for impairment of 4.354 billion yuan

Oil guesswork due to hedging bonds has commanded to China Eastern and Air China tolerated a immense balancing forfeit of unbiased worth, which Eastern Airlines fuel hedging deficits took position in 2007 an advance of over 6.353 billion yuan, accounting for 46 out of 100 of the total loss. Air China’s modifications in unbiased worth forfeit of 7.707 billion yuan, accounting for 84.24% of the total loss.

Oil futures because of conjecture in the lead after the decrease of three airplane proceed a long way, “a shortfall enough,” the suspect. China Southern in 2008 increased a total of 2.073 billion yuan impairment, the allowance of provision in 2008 accounted for China Southern’s 43% loss; Donghang report displays that assets impairment deficiency amounted to 2.022 billion yuan, an boost of 800 percent; Air assets in China impairment decrease of 2.59 billion the preceding year but less than the impairment provision. Total impairment of the three airplane 4.354 billion yuan, accounting for 15.6% loss.

In addition, Air China lost in the investment 1.152 billion yuan, mainly due to associated companies – Cathay Pacific Airways to confirm a loss of 1.188 billion yuan of investment losses. This means that Air China’s main business in 2008 the basic break-even.

If we take away the impairment and the CAO collections of balancing capital deficits, the forfeit of three aeroplane was 9.486 billion yuan more than the development had looked frontwards to better.

Greatly lessened the recital of insist this year

Provision for impairment of large and warmer as long as the first quarter written knowledge liberated in order that a ray of expect for the industry. Air China yesterday’s statement presentations that the first quarter of this year, Air China is not only the windup of spinning, but in addition a yield of 980 million yuan, 0.08 yuan minimal returns per share.

First quarter of this year, Air China to achieve operating income of 11.24 billion yuan, up 11.8 percent decline; 980 million yuan net profit (excluding minority interests), earnings per share and net return on assets reached 0.08 yuan and 4.73 percent. Shenzhen Airlines official figures showed that one quarter of 160 million yuan profit and that the air transport industry have indications warmer.

The Civil Aviation Authority diagrams presented that the first quarter of the in the household civilised aviation transport development earnings expansion over the earlier year a total of 1.3 out of 100 over the matching interval, in the household commuter transport size of 1 to 3 months, respectively, over the matching interval last year an advance of 21.3%, 17%, 15.8%. 1 March this year, China’s civilised aviation development is looked frontwards to to realise profitability.

As the market rebound, as well as three large aircraft impairment preparation, the performance of airlines in 2009 has greatly reduced the pressure, if the second and third quarter to continue the current growth in 2009 is expected to turn around the three major routes.