SHANGHAI (Reuters) - China’s aviation regulator will reduce Air China’s Boeing 737 flights by 10 percent and cancel licenses of the pilot and co-pilot involved in an emergency descent last week, in a move analysts say could push the airline to cut some routes.
FILE PHOTO - Flights of Air China are parked on the tarmac of Beijing Capital International Airport in Beijing, China, March 28, 2016. REUTERS/Kim Kyung-Hoon/File Photo
The Civil Aviation Administration of China (CAAC) will also launch a safety crackdown on the Chinese flag carrier for three months and fine the airline 50,000 yuan ($7,460), China Central Television (CCTV) said on its WeChat account.
The cuts to the carrier’s 737 flights amount to 5,400 hours a month, it said. The CAAC also suspended the licenses of other staff involved in the emergency incident that was linked to a co-pilot smoking in the cockpit, CCTV added.
The airline and the CAAC did not respond to Reuters’ requests for comment on Wednesday.
Air China (601111.SS) (0753.HK) shares fell as much as 1.4 percent in Hong Kong in response to the safety crackdown, before recovering slightly, against a flat Hang Seng index .HSI. The stock is down nearly 40 percent in Shanghai so far this year, amid a falling yuan and higher oil prices.
BOCOM International analyst Geoffrey Cheng said the crackdown would likely have an impact on Air China’s flight schedules, especially as it enters peak travel season, but could also prompt the airline to cut poorly performing routes.
“It could have pros and cons,” he said.
A Chinese aviation professor, who spoke
