Hangzhou on a High

KLM's new Amsterdam to Hangzhou service will operate three times a week with B777-200ER equipment, with seat capacity for 318 passengers.

It is the first time a European airline has operated a non-stop service to Hangzhou.There will be 99,216 seats available on a year round basis, effectively meaning that to achieve an 80% load factor KLM only needs to attract 39,686 passengers assuming they travel both ways.

Hangzhou was initially positioned as a secondary airport to Shanghai, but is now demonstrating that it has the ability to attract the major scheduled carriers to the market.

For example, AirAsia X made Hangzhou its second destination (after the Gold Coast) and has since steadily increased frequency to a six-times weekly service.

Overall, the airport's international network is limited, where 1,271 of its 1,370 weekly flights are to domestic destinations, according to the latest statistics published by Flightbase (March 14-20, 2010). Xiamen Airlines has the biggest presence, using the airport as a secondary base, with 294 weekly departures.

Hangzhou's remaining scheduled weekly flights serve the international markets of Japan, South Korea and Thailand, as well as Hong Kong and Macau - two thriving cities in the Pearl River Delta Economic Zone (PRDEZ). The schedule reflects a mix of leisure and business destinations.

Hangzhou's international schedule:

Destination

Weekly Scheduled Flights

Carriers

Hong Kong (HKG)

35

China Eastern, Dragon Air, Hong Kong Airlines

Taiwan Taoyuan (TPE)

15

Xiamen Airlines, Eva Air, Air China

Seoul Incheon (ICN)

14

Asiana Airlines, Air China

Macau (MFM)

10

Xiaman Airlines, Air Macau

Kuala Lumpur (KUL)

6

AirAsia X

Kaohsiung (KHH)

5

Mandarin Airlines, Uni Air

Taipei (TSA)

4

Transasia Airways

Tokyo Narita (NRT)

4

All Nippon

Kansai (KIX)

3

All Nippon

Gimhae, S Korea (PUS)

2

Asiana Airlines

Bangkok (BKK)

1

Hainan Airlines

Total weekly frequencies

99

Source: Flightbase: 14-20 March 2010

(Note: Flightbase schedules show Hong Kong as an international destination).

The IATA BSP data, which shows only that 14,861 passengers travelled in both directions between January 2009 and 2010 but a large proportion of traffic clear that there is surface leakage to Shanghai and it remains to be seen whether Hangzhou will be able to attract this traffic with the new KLM service.

Progressive Expansion

Hangzhou is eager to develop and has grown to become the ninth largest airport in China on the basis of scheduled flights, with an open strategy to become a major gateway in eastern China and the Yangtze River Delta.

It expects to serve 14 million passengers this year, with plans to double capacity over four years through a major expansion programme. In the first phase a new international terminal is due to open in May, followed by a domestic terminal and second runway.

KLM - Why Serve Hangzhou?

Hangzhou will become KLM's sixth destination in China. With its SkyTeam partner China Southern Airlines, KLM already offers services to Beijing, Chengdu, Guangzhou (operated by China Southern) Shanghai and Hong Kong (Note: Flightbase schedules show Hong Kong as an international destination).

KLM's interest in China is clear from an alliance perspective. As a SkyTeam member, KLM will be able to leverage off China Southern's network, boosting connectivity where the airline operates 263 weekly flights from Hangzhou, to 21 destinations.

It is probable that KLM decision is driven by corporate demand will support the KLM service, given that the carrier has not decided to serve larger destinations such as Kunming, Xiamen and Shenzhen. It will also remain to be seen whether the Hangzhou route will impact its existing KLM Shanghai service.

Richard Maslen

Richard Maslen has travelled across the globe to report on developments in the aviation sector as airlines and airports have continued to evolve and…