China Express Airlines Co., Ltd.
华夏航空
002928
Shenzhen Stock Exchange
Company Profile
(1) Strategic positioning of regional airlines and the formation of differentiated airline business models Under the dual thrust of urbanization and economic development, the total social consumption and per capita income of urban residents in China's third- and fourth-tier cities have increased year by year, and consumer demand has shown a growth trend, gathering a huge consumer group. Different from the main business model of trunk airlines, the company is based in third- and fourth-tier cities, and cooperates with trunk airlines to establish an aviation network between major cities in China and third- and fourth-tier cities, so as to improve the passenger flow between trunk lines and third- and fourth-tier cities and the passenger load factor and load factor of trunk and regional airlines in the network. Under the guidance of the regional aviation development strategy, the company takes the combination of trunk and branch as the entry point, concentrates the diversified needs of regional aviation in the nearest hub, connects with the domestic backbone network through the hub, realizes the passage, extends the tentacles of civil aviation to many regions beyond the reach of trunk aviation, and forms a dislocation competitive advantage outside the trunk aviation network. (2) Regional aviation network effect, which can improve the level of accessibility more efficiently As of June 30,2025, the company flew 194 routes and 170 solo routes, accounting for 87.63% of the company's total routes; The company has 189 regional routes, accounting for 97.42% of the company's total routes; The company covers 96 feeder waypoints. The company will continue to focus on the construction of regional route network, so as to have a stronger network effect in terms of accessibility, which will enable the company to provide more efficient travel services for passengers, provide more efficient aviation solutions for partner organizations, and further expand the advantages of through cooperation with other airlines. The company has established 7 operating bases in Chongqing, Guiyang, Dalian, Hohhot, Xi'an, Korla and Quzhou, and the route network has basically covered China's southwest, northwest, northeast, north, Xinjiang, southeast and other regions, which are rich in regional airport resources in China, and are also areas with greater potential demand for regional aviation. In terms of model configuration, the company selects CRJ900 series aircraft, C909 series aircraft and A320 series aircraft as the main operating models. As of June 30,2025, the company operated 36 CRJ900 series aircraft, 11 C909 series aircraft and 30 A320 family aircraft. On the basis of a deep understanding of the regional aviation market demand, the company gives full play to the advantages of different aircraft types, and matches more suitable aircraft types according to the characteristics of routes in the process of regional market development. The company takes advantage of the low cost of regional aircraft segments to develop and cultivate the regional market; Taking advantage of the low cost of a single kilometer of the A320 model, we will undertake the regional model to cultivate a relatively mature market, fully tap the market potential, and achieve good benefits. (3) The first-mover advantage is laid out in advance to form an operational capability that is more suitable for the regional environment Compared with trunk aviation, China's regional aviation started late, and the initial development speed is relatively slow. In recent years, with the rapid growth of the national economy and the steady increase of national income, the preferences of ordinary people have changed greatly, and there are higher requirements for the convenience and comfort of travel modes. After more than ten years of hard work, the company has grown into a leader in domestic regional air transportation. In terms of time resources, due to the limited time of the airport, the annual time growth rate is limited by the plan, and the first entrant obtains high-quality time and has an obvious first-mover advantage. At present, the company covers 96 regional destinations, and has an obvious first-mover advantage in obtaining resources at regional airports. In terms of route layout, because the company entered the field of regional aviation earlier, and most of the routes in various places are ahead of competitors, it can establish its own industry position and user reputation earlier, so as to form a first-mover advantage in the target market. Especially in the case of relatively limited passenger flow in some third- and fourth-tier cities, the company is the first to enter the regional aviation market in such cities, and can quickly form a route layout and open up a number of solo flight routes. In terms of operational capacity, the company has established a safety management system in flight technical safety management, aviation maintenance and maintenance safety management, cabin safety management, ground operation support safety management, etc., so as to support the high daily utilization rate and high operation quality of the aircraft in the harsh operating environment of poor regional hardware and software facilities and high-frequency take-off and landing. In terms of fleet structure, As of June 30,2025, the company had 36 CRJ900 and 11 C909, totaling 47 regional aircraft, accounting for 61% of the company's total aircraft. Regional aircraft has the characteristics of low segment cost, and is the main model of the company to cultivate the regional market. In terms of marketing network, as the earliest airline specializing in regional passenger and cargo transportation business in China, the company has formed a complete set of operation models for the regional market after years of intensive cultivation, and has supported relevant systems and processes. According to the characteristics of regional aviation, the company has gradually established a marketing network throughout the third and fourth tier cities across the country, and the marketing force has been sinking simultaneously to directly develop the terminal market. In terms of resource integration, the company has established a first-mover advantage in the regional aviation market, occupied market share, and had the resource integration advantage of the feeder end of domestic third- and fourth-tier cities, and carried out all-round cooperation with trunk airlines on this basis, so as to further drive the increase of passenger flow and form a virtuous circle, thereby enhancing the company's overall competitiveness and profitability.
Full description
1. The company's main business The company's main business is domestic and international air passenger and cargo transportation business. According to different market positioning, the aviation market can be divided into trunk aviation and regional aviation. The demand for trunk aviation is mainly concentrated in a few central cities, while the demand for regional aviation is scattered in most small and medium-sized cities. Among them, trunk airlines can be divided into full-service airlines and low-cost airlines according to different customer groups. The markets of full-service airlines and low-cost airlines are large gateway cities with strong travel demand and sufficient passenger sources, national hub cities and some regional hub cities, provincial capitals and economically developed cities in the province, among which the customers of full-service airlines are business travelers and self-pay travelers who are relatively insensitive to price in the above markets, and the customers of low-cost airlines are self-paid passengers who are more price-sensitive and business travelers who pursue high cost performance in the above markets. The market segment in which regional airlines are located is small and medium-sized cities and tourist cities with scattered demand, which is a more sinking market segment that is different from full-service and low-cost airlines. As a leading regional airline in China, the company is committed to building a more convenient and comfortable air travel mode for small and medium-sized cities; Committed to becoming a network-oriented airline and building a wide coverage transportation network; It is committed to meeting the growing air travel demand of small and medium-sized cities and meeting the needs of the people for a better life. 2. The company's market position The company is the only large-scale independent regional airline in China, and has clearly adhered to the strategic positioning of regional routes since its establishment, and is also the leader of domestic regional airlines. As of June 30,2025, the company's fleet size is 77, and the route network covers 96 regional waypoints, accounting for 43.84% of the national regional waypoints; The company has 194 flight routes, including 192 domestic routes and 2 international routes, and has basically built a national regional aviation network.