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#1 pedroagfreitas

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Posted 12.08.2017 - 14:58

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“It is an honor for me to be at this press conference, after a month of Tianjin Sky has started operations. We are here today to show a little presentation of the airline” stated Pedro Freitas, the CEO of the new china's airline, fully owned by Tianjin Investment Group (“TIG”), a Tianjin’s businessmen investment fund, which saw an opportunity in the airline market.

 

Why Tianjin ?

 

Tianjin is a key city in China, being in the top 5 of biggest cities in the world, the 3rd in China, with the highest per-capita GDP and one of the tops GDP’s anually grownth. The city is also known to their multicultural living-style, as it is an important trade area since the 19th century, being the entrance gate to some european countries, reflecting at old downtown with remainable european style buildings, such as churches and villas. By contrast, nowadays at district of  Binhai, due to the important role of Tianjin in business, the city has more than 200 companies’ headquarters in diversified market segments.

 

Airline Market

 

China's airline market has been affected as the biggest national airline crashed and left plenty of free slots on major airports and in a demonstration of the Chinese market power, after only one month, China has got 8 new airlines, which had a meteoric growth and quickly expand their fleet and participation on China’s major airports. It was in such context that Tianjin Sky has been founded, after a market research, that evaluate the availability of slots at airports, the importance of the airport and availability routes, with the final choice being Tianjin.

 

The Airline

 

Tianjin Sky has been founded to serve the city of Tianjin, and eventually some ground traffic from Beijing, through a spoke-hub system connecting Tianjin to another cities in China and later to the world. The airline main value is to provide to each passenger a comfort and quality flight, connecting them even to the smallest airport in China, to promote the cultural diversity and to fight against any kind of prejudice. The airline has a solid and planned administration, with determined goals for the short, medium and long term, which are:

 

  • Establish an airline in Tianjin, owning at least 50% of market share at this airport and fly to all major airports in China.

  • Renew the entire fleet with new narrow-bodies jets (to be determined), start medium-haul international flights and fly to over 100 airports in China

  • Start long-haul international flights and dedicated cargo flights through China.

 

Logo Design

 

Tianjin Sky's logo, which consists of the company name in Chinese characters and the stars forming the aquarius constellation, was inspired by one of the stories for the origin of the city’s name, that it honors a former name of the Girl, a Chinese constellation recorded under the name Tianjin in the astronomical section of the Book of Sui,the official history book of the Sui Dynasty (A.D 581-618). The Girl mansion one of the mansions of Chinese constellations has an equivalent version in the european constellation, that is the Aquarius constellation, found in the airline's logo.

 

Fleet

 

The airline’s fleet is composed by 3 types of aircrafts (detailed below), with a cabin configuration , divided in 2 seats class, designed to give passengers more comfort through the flight. On-board service is also a concern for Tianjin Sky, as the airline offers full meals and a diversity options of entertainment on every flight.

 

The fleet list:

 

  • 27 BAE 146-200 - The british regional jet with a range of 2000 km is the backbone of our fleet, as it can reach most of destinations in China.

  • 12 Mcdonnell Douglas 82/83/87 - The american narrow-body appeared as an opportunity in the market and due to their capacity, fly over routes with high demand.

  • 5 Boeing 737-300/400/700 - The other american narrow-body flies to longer destinations and high demand routes.

 

In one month of full operation, having 30% of market share in Tianjin with a SLF of 81%, transporting more than 300 k PAX and serving more than 50 airports, Tianjin Sky is proud to serve the Chinese nation and hopes to have a successful future.

 

After the presentation, the CEO answered some questions made by the press:

 

Q: How will the airline deal with the competitors ?

A: It’s obviously that we are aware of all the competitors in China and we want to take a significant piece of the market, but Tianjin Sky believes that a fair competition is the best strategy to deal with competitors and at the moment we are negotiating interlining agreements with anothers Chinese airlines, to reach some destinations that we are not flying.

 

Q: Does Tianjin Sky have plans to fly from other airports ?

A: Actually, we already have some flights from other airports, like Lanzhou and Harbin, but all of them are connected with our flights from these cities to Tianjin, so it is a leg from our spoke-hub system. We do have intention to fly some point-to-point flights, on routes with high demands, but now we are working on building our hub at Tianjin.

 

Q: About the last part of your previous answer. Does the low slots availability on China’s majors airports worries the airline ?

A: I would definitely be lying If I said that is not a thing to worry about but we are always with an eye on slots availability on major airports and evaluating profitable routes from theses airports.

 

Q: What are the nationally and internationally expansion plans for Tianjin Sky ?

A: Nowadays, we have flights from Tianjin to almost all major airports in China so, nationally, we have plans to expand our connections to medium and smaller airports, but there is not much else I can say about it. Talking about our international flights, we have some experiences going on South Korea and Japan, but not with expected results. Our next step is to look for some partners in Asia and Near East.

 

Q: On the presentation, the medium term goal is to renew the fleet. Does the company already know the manufacturer? Is there any negotiation going on?

A: No, we are not negotiation at the moment. We are currently evaluating the size of the fleet that we will need and some BAEs and MDs will arrive before we can ever think about renew the fleet.

 

Q: Could you not even tell which manufactures you bear in mind?

A: Well, we are looking for high-quality narrow-bodies, so it’s obviously that Boeing and Airbus are competing head to head. You may say that we did not mention Bombardier with the CSeries and Comac, but we want a diversity of aircrafts within the same maintenance category to fly routes with differents demands.

 

At the end of the press conference the PR of Tianjin Sky announces that a report of the business will be released each 2 months and any other relevant information will be announced as soon as possible.

 


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#2 CBE

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Posted 12.08.2017 - 15:34

This is a fantastic press release, well done! I would love to reward you for it. I would love to help grow your fleet and get you to 60 planes. I can offer you through Global Banking Corporation 4 MD82, 10 MD83 and 2 more modern MD90 at 10% of costs for the coming three months. Just contact me ingame and we will establish a time for me to put them up. Keep up these press releases!


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#3 pedroagfreitas

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Posted 12.08.2017 - 23:48

This is a fantastic press release, well done! I would love to reward you for it. I would love to help grow your fleet and get you to 60 planes. I can offer you through Global Banking Corporation 4 MD82, 10 MD83 and 2 more modern MD90 at 10% of costs for the coming three months. Just contact me ingame and we will establish a time for me to put them up. Keep up these press releases!

 

Thanks for your words !!! I took a lot of inspiration from your topics and real life listed companies press release.


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#4 pedroagfreitas

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Posted 20.08.2017 - 19:41

Tianjin’s Sky August 20 Announcement

 

As said before, any relevant matter that could impact Tianjin's Sky business will be reported. This week Tianjin Sky acquired 10 MD-82 with the cabin configuration similar as the others MDs on the airline fleet. This improvement on the fleet has occurred to raise the capacity on high demand routes that was flying with BAE 146-200 and to replace the Boeing 737 fleet, as a first step to renew the fleet.

The replacement of the BAE-146s results on new routes from Tianjin, Beijin Nanyuan, Guilin and Urumqi, all of them with connections to our HUB in Tianjin.

 

Lastly, to eliminate the rumors, Tianjin Sky is not looking to join an alliance, as the CEO said “It is not on our time [to join an alliance], we do believe on cooperation, but we have some priorities now that we could not even think of it. At the moment, we will prioritize strategic partnerships with others airlines/lessors.”.


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#5 pedroagfreitas

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Posted 14.09.2017 - 03:58

Tianjin’s Sky September 14th Announcement

 

WE ARE 1 MILLION !!!

 

Tianjin Sky proudly announces that it has reached the milestone of 1 million passengers transported by our fleet in 2 months of operation. At a cocktail party hosted by company the CEO, Pedro Freitas, stated “We certainly have to celebrate this milestone, but that’s one small step for the company, it only shows that we are following the path that we had determined before”.

 

Following the cocktail party celebrating the milestone, as part of our monthly report, the airline announces new additions to their fleet, reschedule of operations outside Tianjin's Hub, changes in on-board service and prospecting of the new aircraft type, all of these 4 will be detailed below.

 

New aircrafts on our fleet

 

  • As a part of our growth program, adding new routes to our Hub and focus city, we had adquire 2 MD 83 and 10 BAE 146-200, on our standard seat configuration that we already used on this aircrafts type.

 

Fleet list update:

  • 40 BAE 146-200

  • 24 Mcdonnell Douglas 82/83/87/88

 

Reschedule of Routes

 

  • Being part of our business strategy, we are always looking for profitable and/or unserved routes, and as a part of that, we can not ran away from the trial and error. As a result, we closed the operations in Beijing Nanyuan and Guilin and increased our operations in Lanzhou, Urumqi and Harbin.

 

Changes in on-board service

 

  • Due to the following rises of fuel prices, we had made some changes on our economy on-board service. It is important to say that we do not lower the quality, we only made some adjusts on the preparation resulting on a saving of 20%.

 

New aircraft type

 

  • As part of our medium term goal, we are evaluating a new and modern aircraft to be the backbone of our fleet. Currently, we are testing a 6 years Airbus A321-200 Standard on our route to Beijing (PEK). We do not have a final decision on the Airbus family, we are on a Airbus x Boeing comparison, but recently we are looking with good eyes for the Bombardier’s C-Series as we are concerned with the cargo flight related costs.


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#6 pedroagfreitas

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Posted 13.10.2017 - 19:52

Tianjin Sky Monthly Report - October 2017

 

It’s been a month ago since our last report and we have some big announcements for this month, said the Tianjin Sky’s PR at the opening of the monthly press conference.

 

As part of our monthly report, Tianjin Sky announces some goals achievements, the opening of a secondary Hub, new international destinations, new wave times, additions to the fleet and the the final decision on the renewal of the fleet.

 

Goals achievements

 

On the airline business plan we set some short and medium term goals, which are “Establish an airline in Tianjin, owning at least 50% of market share at this airport and fly to all major airports in China.” and “Renew the entire fleet with new narrow-bodies jets (to be determined), start medium-haul international flights and fly to over 100 airports in China”.

 

After just 3 months of operations, we can proudly say that Tianjin Sky completed all the short term goals and are on the path to complete the medium term goals.

 

As we can not miss this opportunity, Tianjin Sky in the last month reached the milestone of 2 million of transported passengers.

 

Secondary Hub

 

As Tianjin Sky grows the company aims new markets and through our market research we found that it could be profitable to fly to some destinations in the southeastern asia but, with Tianjin Sky Hub in Tianjin and with the current fleet we do not have the range to fly directly to these destinations and then we start to think to solve this problem.

 

As we have a qualified team, we found the answer quickly “Why not start another Hub in south China?” and just after a few days we found Haikou Airport on the Hainan island as the perfect airport to be our secondary hub. There is a lot of pros on this airport, is one of the southernmost airports in China, less than 1000 km away of some of our international destinations, good amount of available slots and finally less than 2,200 km from Tianjin.

 

Our operation in Haikou does not only have flights to international destinations but also to major airports in south and central China as our passengers does not have to fly to Tianjin if they want to go to one of these airports.

 

International destinations

 

As mentioned before with the opening of our secondary hub in Haikou we started our operations to Hanoi and Da Nang in Vietnam, Bangkok and Phuket in Thailand and finally we are currently evaluating for 2 weeks a flight to Jakarta in Indonesia. It’s important to say that we did not change any cabin or on-board configuration of our aircrafts using the same that we fly over China domestic destinations.

 

New wave times

 

At our Tianjin Hub we already had 3 waves time that connects almost all of our destinations to each other but in order to give to our passengers more options of connections to our flights and also to our partners flights we have added 3 more waves time.

 

Additions to the fleet

 

As mentioned before, with the secondary Hub in Haikou and with the addition to new waves time in our Hub in Tianjin, we had a great addition of aircrafts to our fleet, it was more than 50 used aircrafts!. You can find below the current fleet list, with the same seat configuration and on-board service that we already used.

 

           Fleet list update:

  • 47 BAE 146-200/300

  • 63  Mcdonnell Douglas 82/83/87/88

All the aircrafts are used, on average with more than 25 years, and was acquired by a leasing contract from Aircraft Trade and Leasing Organization.

Renewal of the fleet

 

As part of our mid-term goal, we had to choose a new modern narrow-body jet to be the backbone of our fleet and after a month evaluating the Airbus A320 family we came to a decision.

 

In a meeting on October 2nd in Toulouse, Tianjin Sky had taken the final decision and choose the Airbus A320 family as the future backbone of the airline’s fleet. “We were impressed with the variety of aircrafts sizes and range within the same aircraft family” said the Commercial VP at the end of the meeting.

 

Tianjin Sky have plans to utilize the A319, A320 and A321 variants on domestic and some international routes on a 2 class seat configuration with even more comfort than our current seats. At the moment, we have already flying 6 of the Airbus family, 1 A319, 3 A320 and 2 A321 on some routes from Tianjin and Haikou.

 

We expect to make a slow renew of our fleet and new MDs and BAEs additions to our fleet may still occur. Another important information is that we expect to acquire only a few new aircrafts, being a good part of the Airbus fleet from used aircrafts. “We heard from Airbus that with the A320neo a lot of A320s are returning to the lessors and we are aiming these returned aircrafts” said the the Commercial VP.

 

We could say that we are currently looking for a lessor to negotiate a leasing of A320s.

 

           


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#7 CBE

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Posted 15.10.2017 - 19:42

I have already returned my last a320ceo some time ago but I'm in the process to return 150 A321CEOs right now. Many are leased from Tao Aviation Services who I presume is more than happy to lease them to you. Otherwise you will see A321Es popping up on the market as I plan by the end of the year to have most of them returned. I really like the plan to use semi new second hand planes as it is exactly what I did. But with the rise in fuel prices I need the latest which means that these almost new planes need to leave.
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#8 pedroagfreitas

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Posted Today, 12:47

I have already returned my last a320ceo some time ago but I'm in the process to return 150 A321CEOs right now. Many are leased from Tao Aviation Services who I presume is more than happy to lease them to you. Otherwise you will see A321Es popping up on the market as I plan by the end of the year to have most of them returned. I really like the plan to use semi new second hand planes as it is exactly what I did. But with the rise in fuel prices I need the latest which means that these almost new planes need to leave.



Thank you for this advice. Tianjin Sky will definitely look to Tao Aviation Services for their leasing services.

There are a couple of key points on the plan to lease second hand aircrafts and the returned aircrafts are certainly one of these. The leasing depot and leasing rate is another point, as Tianjin Sky can not afford a renew with brand new aircrafts (CEOs or NEOs) and by our analysis less than 10 year used A320s is on average 20-30% cheaper, the airline can lease more aircrafts.This is important for the airline on a competitive market like China, as we understand that we need to expand quickly.

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