Air China - History and Development

History and Development

Air China was established on 1 July 1988 as a result of the Chinese government's late 1987 decision to split the operating divisions of Civil Aviation Administration of China (CAAC) into six separate airlines: Air China, China Eastern, China Southern, China Northern, China Southwest, and China Northwest. Air China was given chief responsibility for intercontinental flights and took over the CAAC's long haul aircraft (Boeing 747s, 767s, and 707s) and routes.

In January 2001, the former CAAC's ten airlines announced they had agreed on a merger plan, according to which Air China was to acquire China Southwest Airlines. Before the acquisition, Air China was the country's fourth largest domestic airline. The merger created a group with assets of 56 billion yuan (USD $8.63 billion), and a fleet of 118 aircraft. In October 2002, Air China consolidated with the China National Aviation Corporation and China Southwest Airlines.

On 15 December 2004, Air China was successfully listed on the Hong Kong and London Stock Exchanges. The airline also listed its shares on the Shanghai Stock Exchange on 18 August 2006.

In 2006, Air China signed an agreement to join the Star Alliance. It became a member of the alliance on 12 December 2007 alongside Shanghai Airlines.

In July 2009, Air China acquired $19.3 million of shares from its troubled subsidiary Air Macau, lifting its stake in the carrier from 51% to 80.9%. One month later, Air China spent HK$6.3 billion (USD $813 million) to raise its stake in Cathay Pacific from 17.5 percent to 29.99 percent, expanding its presence in Hong Kong.

In April 2010, Air China completed the increase of shareholdings in Shenzhen Airlines and became the controlling shareholder of Shenzhen Airlines, allowing Air China to further enhance its position in Beijing, Chengdu, and Shanghai as well as achieve a more balanced domestic network.

On 2 December 2010, Air China received Spain's highest tourism industry award, the "Plaque for Tourist Merit". Air China was the first foreign airline to receive the award, which is given to organisations and individuals contributing to the Spanish tourism industry.

On 23 December 2010, Air China became the first Chinese airline to offer combined tickets that include domestic flights and shuttle bus services to nearby cities. The first combined flight-shuttle bus ticket connected Tianjin via shuttle bus with domestic flights passing through Beijing.

On 12 November 2011, Air China announced that it would be offering Wi-Fi internet service on board its aircraft from 15 November 2011, making it the first Chinese carrier to offer this service.

In 2012 Air China launched a Facebook campaign in collaboration with Asian restaurants in Sweden, where participants could check in using their smartphones and win a flight to Beijing.