Southern Airlines to Expand International Flights for A380
China Southern Airlines Ltd (NYSE: ZNH, HKG: 1055, SHA: 600029) is hoping to squeeze profits from its underperforming Airbus A380 fleet by expanding to more international routes, the Wall Street Journal reported. A China Southern official said the airline will fly the superjumbo on its twice-daily Guangzhou-Sydney service beginning October 28. The airline began flying A380s late last year on the less lucrative Guangzhou-Los Angeles service, and was forced to deploy excessive A380s on local routes after talks on some international flights failed. The Guangzhou-based carrier reported an 82% drop in Q1 net profit to 57 million yuan as competition intensified. Analysts say the carrier incurred losses of 200 million yuan last year from its A380 fleet alone, because they were being underutilized on domestic routes.
Yanzhou Coal Posts 2.4 Billion Yuan Loss
Yanzhou Coal Mining Co (NYSE: YZC, HKG: 1171, SHA: 600188), China's third biggest coal producer, posted a 2.4 billion yuan loss for 1H 2013 as a result of low coal prices and losses from foreign exchange exposure. Revenue stacked up to 26.19 billion yuan in 1H 2013, the company said, without giving historic figures for comparison. Yanzhou Coal produced 35.11 million tons of coal and sold 45.38 million tons in 1H 2013, up 8.3% and 4.8% respectively from a year earlier, but lower prices led to its sales revenue falling 12.5% year on year to 24.44 billion yuan during the 6-month period.
eLong Sets Up $100 Million Mobile Travel Fund
eLong Inc (Nasdaq: LONG), a Chinese online travel service provider, said it had set up a $100 million Mobile Travel Innovation Investment Fund that will invest in mobile travel products in and out eLong. External investments will involve eLong's mergers and acquisitions as well as angel funding for start-ups.
PetroChina Signs Kenya Deal
CNPC, the parent of China's largest oil producer PetroChina Co (NYSE: PTR, HKG: 0857, SHA: 601857), said it had reached an agreement with the Kenyan government to help it develop clean energy projects to ease local electricity shortage. CNPC will capitalize on the African country's rich geothermal resources to generate power.
Shenhua Coal Sales Fall Sharply
China Shenhua Energy Co (HKG: 1088, SHA: 601088), the nation's biggest coal producer, reported weaker output and much weaker sales in July due to shipment delays. Shenhua's commercial coal output totaled 26 million tons in July, down 1.5% month on month and up 3.2% year on year. Its coal sales totaled 33.1 million tons in July, down 26.9% month on month and up 4.7% year on year. Power generation rose 11% month on month and 16 % year on year as the unusually hot weather increased demand for electricity.
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