This year has turned out to be a very memorable one for the Shandong Aviation Group Co Ltd (SDA).

On October 11, SDA was awarded the Meritorious Service Medal by Shandong for its excellent performance throughout the province's "60 years' 60 brands" local government initiative. The honor was given in recognition of the company's "sincere, enthusiastic and truehearted service" throughout its 15-year operating history.

Similar success awaited at the 2009 World Brand Summit, where the world Brand Lab announced the "Top 500 Most Valuable Brands in China". SDA was placed high on the list and ranked 160th overall. Meanwhile, its competitive strengths saw it rated as fourth among all global airline companies by the prestigious international journal, Aviation Monthly and Space Technology.

According to interim statements, during the first six months of the year SDA has conveyed a total of 3.514 million passengers, an increase of 13.5 percent year on year. It has achieved an operating income of 2.34 billion yuan, with net profit of 113 million yuan - a 91.87 percent increase on 2008.

Zhang Xingfu, secretary of the Party Committee of SDA, said: "Despite the impact of the global financial crisis, the company has still made a number of impressive achievements, mainly due to its own dramatic efforts in establishing its brand.

"The company's successful development of its brand and its subsequent economic benefits have been derived from its excellent service, innovative management and advanced operational philosophy."

Currently, SDA has a fleet of 46 different kinds of planes. In total, it now has some 220 air lines servicing more than 60 cities across the Chinese mainland. It also flies to Taiwan and to a number of overseas destinations, including Singapore and Korea.

"The company has gradually established a marketing platform of 'focus on Shandong, face the nation and fly to the world'. This has allowed us to develop in a unique fashion," said Zhang.

During the winter weather problems early last year, many SDA planes were trapped by heavy snow. One of them was a passenger plane that was confined to the ground for 48 hours, however, none of the passengers complained about the company due to its timely and proper response. When the Sichuan earthquake occurred last year, SDA was the first operator to send planes with relief supplies to the quake-stricken areas.

Zhang said: "Opportunities are always there for those who are ready. It is very fortunate that the company had successfully foreseen the global financial crisis and adopted over 300 effective preparatory measures, including cutting down expenditure and increasing income."

Indeed, for SDA, the financial crisis appears not as an obstacle, but rather as its largest challenge and opportunity to date.

On March 24, the Xiamen Branch of SDA was established. This saw 19 new routes opened up, linking the cities of Jinan, Hangzhou and Taipei. By September, the Xiamen Branch has delivered 460,000 passengers, accounting for six percent of the city's total throughput. Additionally, on April 23, SDA was awarded credit of six billion yuan, considerably boosting its potential for economic development.

SDA has been striving to constantly research and develop new products. Following the success of its previously-launched monthly tickets, on September 17 limited-edition annual tickets went on sale for China's 11th National Games. As a unique new product, the annual ticket proved a hit as soon as it came onto the market.

Meanwhile, the company has built up strategic cooperation relationships with many tourism organizations, including the Shandong Travel Bureau and the Xiamen Travel Bureau.

On August 22, its first advertiser-liveried plane - "Hospitable Shandong-Jinan" - went into service on routes linking Taipei, Seoul and Beijing. Undoubtedly, "Hospitable Shandong-Jinan" will become a brilliant ambassador for Shandong, through promoting the city's image, tourism and air transportation, Zhang believes.

SDA has now signed an agreement to lease two more Boeing 737-800 aircrafts with RBS Aviation Capital Group as of October 14.

Zhang said: "We are committed to innovation in terms of strategic policy, our commercial model and organizational structure. All of these efforts have brought the company huge competitive advantages and made us increasingly strong step by step."

(China Daily 10/27/2009 page15)