IATA bullish on China aviation market

The State Grid Corp of China— the world’s biggest utility company by revenue — said it will launch a tender offer to buy the remaining shares it does not already own in CPFL Energia SA, the Brazilian power group said in a securities filing.

The State Grid said on Thursday it would pay 25.51 reais ($8.35) per share for the balance in CPFL.

The latest move comes after the Chinese company last month acquired a controlling 54.64 percent stake in CPFL Energia and its subsidiary, CPFL Energias Renovaveis SA, for 17.36 billion reais ($5.68 billion).

According to the filing issued by CPFL, the largest power distributor in Brazil, the State Grid plans to delist CPFL from theNewYork and Sao Paulo stock exchanges.

Bloomberg Intelligence senior analyst Joseph Jacobelli said with the purchase, the State Grid would enjoy better synergies overall with more business and exposure in Brazil.

The State Grid did not reply to questions about the buyout, but said when taking the controlling stake, the deal would further extend its business to power transmission,

The first phase of the Belo Monte UHV DC Transmission Project is expected to start commercial operations by February 2018, Li Lequan, deputy director of State Grid International Development Co Ltd, SGCC’s subsidiary for global operations, said earlier during a news conference.

Brazil’s power sector is undergoing a wave of consolidation as several companies struggle financially amid Brazil’s economic recession since middle 2014.

money that State Grid Corp of China spent on stake in CPFL Energia and its subsidiary

The International Air TransportAssociation said on Friday that it is bullish on the growth potential of China’s aviation market and believed the new airport in Beijing, which will start operations in 2019, would ensure sufficient airport capacity to meet expected traffic growth.

By 2024, China will overtake the United States as the world’s biggest passenger market, and in 2035, China will be a market of 1.3 billion passengers, forecast theMontreal-based trade association of the world’s airlines.

“China’s aviation development is impressive,” said Alexandre de Juniac, the newly-appointed director general and CEO of the IATA.

“Today, Chinese airlines and airports rank among the top 10 by passenger numbers,” de Juniac told a news conference in Beijing on Friday.

Meanwhile, the on-time performance of Chinese airlines was 76.48 percent between January andNovember last year, a 9 percentage point improvement over the same period the previous year, according to the Civil Aviation Administration of China.

“I recognize the authorities have taken steps to improve the situation,” de Juniac said.

“Still more needs to be done to address the delay situation. That includes a restructuring of the air route network and closer civil and military air traffic control cooperation to allow rerouting flexibility, especially during Alexandre de Juniac, bad added.

The IATA said the northern Asian region, including China, had the lowest accident rate for the first half year of 2016 and the lowest five-year average between 2011 and 2015.

In 2016, the global airline industry’s profits reached weather,” de Juniac $35.6 billion with a net profit margin of 5.1 percent, the highest-ever absolute profit generated by the sector and the highest net profit margin.

This year, with expected rising oil prices, the IATA forecast the global airline industry will make a net profit of $29.8 billion, with a 4.1 percent net profit margin.

“Airlines continue to deliver strong results. Even though the conditions in 2017 will be more difficult with rising oil prices, we see the industry earning $29.8 billion,” the IATA chief said.

“That’s a very soft landing which is safely in profitable territory. These last three years were the best performance in the industry’s history — irrespective of the many uncertainties we face,” he said.

We see the industry earning $29.8 billion.” IATA CEO of