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Experts Question Profitability of A380

China's first Airbus 380, operated by China Southern Airlines, took off yesterday on its first flight from Beijing to Guangzhou but civil aviation experts question whether the huge costs of flying the superjumbo will be profitable for the carrier. China Southern, the largest carrier in Asia by fleet size and passenger turnover, bought five A380s from European manufacturer Airbus in 2005. The purchase propelled the airline to become the country's first and only operator of the… ( More...

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99NY 0
Being essentially a state-run airline, I'm sure all the books will eventually be cooked to show that CS's decision to go with the A380 has resulted "high profitability" regardless of the reality.
canuck44 0
China is interesting in that while corruption certainly exists there are some rather dramatic checks and balances that we do not have. China Southern has sold shares in Hong Kong and Shanghai and as the fifth largest airline in the world you can count on many of the very rich Chinese owning much of that stock. In China if you are rich, you are politically powerful...that is usually how you got that way. Screw these people and the Central Government will act and you can count on a show trial with either a long sentence or multiple contributions to the "Donors Club" with a bullet behind one ear administered next to the harvesting van.

A perfect example was the kidnapping of Victor Li, son of Li Ka-shing who is the richest man in Hong Kong, by Cheung Tze-keung. While a random was paid and Victor released minus an ear, the Feds acted and justice was swift and terminal. The lesson is that a little corruption might be tolerated but do not cross the line, do not target the powerful or become publicly obvious. Very low recidivism rates here.


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