China's Shanghai Airlines is set to join China Southern as a potential launch partner for the Bombardier’s CSeries aircraft, according to Jacques Kavafian, analyst at Research Capital.
Mr. Kavafian, who recently returned from a visit to China, said he is "certain" the Shanghai-based airline will seek approval at meeting of the Civil Aviation Administration of China on July 14 to purchase the CSeries after he said he received confirmation of the order from unnamed sources in China.
"Although the number of aircraft that it will acquire is not known, it will likely be fewer given that Shanghai Airlines is a smaller airline than China Southern," he said in a note to clients Monday.
Mr. Kavafian made a similar prediction in March that China Southern may place a substantial order for 50 of Bombardier’s turboprops and 50 of the 110-to-130 seat CSeries aircraft.
Many analysts, including Mr. Kavafian, have said next week's Farnborough International Airshow in England would provide a likely venue for the launch of the CSeries, which Bombardier has said it will make a launch decision on by end of 2008.
"Although the July 14 meeting date coincides with Farnborough Air Show's opening day, we don't know if there will be enough time for CAAC officials to complete all the necessary work for an order announcement at Farnborough," Mr. Kavafian said. "In our opinion, identified potential customers now include China Southern, Shanghai Airlines, Lufthansa, ILFC, and Qatar Airways."
Mr. Yang Yuanyuan, former Minister of CAAC , was there at Aviation Expo/China 2007 with us
Mr. Gao Hongfeng, Vice Minister of CAAC, was there at Air Show China 2002 with us
Mr. Yang Guoqing, Vice Minister of CAAC, was there at Aviation Expo/China 2005 with us | Video