Five Things to Look Out for When You Fly With Air Koryo, the World’s Worst Airline

By Clement Tan and Sam Kim

Feb 18 (Bloomberg) — Change is in the air in North Korea. After years of being ranked by Skytrax as the world’s worst airline, national carrier Air Koryo is undergoing a revolution, according to interviews with passengers and travel agents.

New planes, new in-flight entertainment options, smart new uniforms for the cabin attendants, even business class. It’s all part of supreme leader Kim Jong Un’s effort to boost tourist numbers 20-fold to 2 million by 2020 and supplement the nation’s meager foreign exchange.

Here are five reasons to book your ticket now, before the thrill of flying the world’s only one-star airline vanishes forever. (And as long as you don’t mind helping fund Kim’s nuclear-weapons program.)

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Chinese New Year: When Buying A Train Ticket Feels Like Winning The Lottery

By Clement Tan

Jan. 31 (Bloomberg) — In China, getting a ticket home for the Lunar New Year can feel a bit like winning the lottery. First, there’s competition for plane, train and other passenger seats for almost 3 billion voyages. Then there’s the quiz to prove you’re not a Web robot.

Beijing hairstylist Yang Mingyue learned how high the odds are in November, when she stayed up past midnight to buy train tickets online as soon as they became available. After finding the best fares for the 20-hour trip home to Heilongjiang province, Yang hit a snag: cryptic questions she had to answer correctly before her booking would be accepted.

The puzzles are part of new cybersecurity measures designed to thwart scalpers from snapping up seats to resell at inflated prices. But in attempting to block scammers, the perplexing process is catching innocent web users such as Yang.

“Those questions were so ridiculously difficult, and even when I managed to get them right after a few tries, the seats I wanted were no longer available,” the 21-year-old said. “It’s too late now. Even standing tickets on the dates I wanted are all sold out, economy class air tickets, too. Business class is too expensive.”

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With a Rail Merger, China Is Forging an Industrial Giant Second Only to GE

By Clement Tan

June 8 (Bloomberg) — China is forging the country’s answer to General Electric, combining two state-owned railroad equipment makers to create the world’s second-largest industrial company. And the giant isn’t planning to stay at home.

The merger of CSR Corp. and China CNR Corp. is now complete, producing a nearly $130-billion behemoth called CRRC Corp. with economies of scale that will allow China to compete even more aggressively for overseas rail deals. Shares of CRRC began trading Monday under CSR’s old tickers, gaining 4.5 percent to HK$15.68 in Hong Kong and rising by the daily limit of 10 percent to 32.40 yuan in Shanghai.

China is using its state-owned rail firms not just to win lucrative contracts but to project political influence abroad. CRRC will dwarf competitors like Germany’s Siemens AG and France’s Alstom SA as it targets emerging markets in Africa, Latin America and Southeast Asia — often with sales pitches from Premier Li Keqiang — while bidding for high-profile contracts in the developed world.

“It used to be that CSR and CNR were competing against Bombardier and Alstom; now it has become China versus everybody else,” said Alexious Lee, head of industrials research for CLSA Ltd. in Hong Kong. “China’s products may not boast high-end specifications, but they provide value for money.”

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TransAsia Won Delay of New Safety Rule Prior to Fatal Air Crash

By Tim Culpan and Clement Tan

Feb. 9 (Bloomberg) — Taiwan aviation officials agreed last month to TransAsia Airways Corp.’s request to push back enforcement of a new rule aimed at forcing them to have more time to conduct pre-flight checks.

Authorities delayed until March 1 their implementation of minimum transit time requirements, introduced this year after a fatal crash on Taiwan’s Penghu islands in July, because the airline had already published its schedule for January and February, Clark Lin, director of flight standards at the Civil Aeronautics Administration told Bloomberg News.

Enforcement of the new rule, which applies only to TransAsia and its fleet of ATR 72 aircraft, would not necessarily have prevented last week’s fatal crash, he said.

Flight GE-235, with aircraft registration No. B-22816, departed Taipei’s Songshan airport on Feb. 4 for the pilots’ second trip to Kinmen near China that morning before crashing four minutes later in the nearby Keelung River. A review of the aircraft’s Technical Log Book entries, which were kept by TransAsia and released by the CAA, show the pilots may have spent just 20 minutes at the gate in Kinmen while fuel was added, before returning to Taipei.

At least 40 people have been confirmed dead and three are still missing after pilots responded to engine warning alarms before the aircraft plunged into the water.

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China to Debut Fighter Jet as U.S. Brass Attends Airshow

By Clement Tan

Nov. 11 (Bloomberg) — China’s Air Force’s newest fighter jet made its debut at an air show attended by senior U.S. officers in an effort to showcase its rising military clout.

The J-31 stealth fighter gave a public demonstration of its capabilities at the Zhuhai Air Show that started today in Guangdong province, according to state broadcaster CCTV and the official Xinhua News Agency. The airshow coincides with a meeting in Beijing of leaders of the Asia-Pacific Economic Cooperation forum, including U.S. President Barack Obama.

Manufactured by the Shenyang subsidiary of Aviation Industry Corp of China, also known as AVIC, the J-31 is a test of the country’s ability to deliver cutting-edge defense technology. Still largely-shrouded in secrecy, the production of the fighter could add heft to China’s sea and air expansion in the region and its push-back against decades of U.S. economic and military dominance.

“It appears to be a fifth-generation fighter and so far of course only the United States has been able to produce those,” said Richard Bitzinger, a senior fellow at the S. Rajaratnam School of International Studies in Singapore. “So in a sense, it’s kind of impressive on a superficial level.”

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Movie Stars Swap Limos for Subway in Hong Kong Protest

By Shai Oster and Clement Tan

Oct. 13 (Bloomberg) — Hong Kong’s commuters are sharing crowded subway cars with some rarefied company these days: movie stars.

As pro-democracy protests enter their third week, blocking key roads and leaving swathes of the financial center mired in gridlock, action stars, Canto-pop singers and teen heartthrobs are ditching their Lamborghinis and chauffeur-driven Rolls Royces for mass transit.

Soon after students seized the streets Sept. 26 in a campaign for freer elections, Hong Kong’s cell phone-snappers began capturing some of this entertainment capital’s most famous faces among the huddled masses on the Mass Transit Railway, or MTR, the city’s subway.

There — in goatee, baggy sweatpants and low-slung baseball cap — is “Crouching Tiger, Hidden Dragon” star Chow Yun Fat. There’s television star Jessica Hsuan stepping out of the small screen and through the subway doors. Here’s matinee idol Aaron Kwok — he sings! he dances! his hair! — posting a selfie to commemorate his first subway ride in a decade.

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Pockets of Hong Kong Protesters May Defy Student Leaders

By Clement Tan, Cathy Chan and Jonathan Browning

Oct. 7 (Bloomberg) — With Hong Kong’s student-led protests dwindling and rally leaders in talks to end their 12-day campaign, a small number of demonstrators are threatening to ignore any call to abandon their posts.

Pro-democracy protesters still on the streets of central Hong Kong increasingly don’t answer to the leaders from various student groups. As people drift back to school and jobs, those who remain pose a challenge to police under pressure to remove blockades and open roadways.

“These people come on their own, they make their own mind up, they don’t respond to anyone’s appeals,” said Joseph Cheng, a political science professor at City University of Hong Kong and democracy advocate. “The police understand this very well,” he said, and know the protesters are “unpredictable.”

The resolve of some remaining demonstrators may complicate efforts to bring the standoff to a peaceful end. Any attempt to remove them by force risks backfiring, as police saw when the use of tear gas on Sept. 28 brought thousands more onto the streets. When gangs attacked demonstrators at the Mong Kok and Causeway Bay sites on Oct. 3, the protests swelled anew.

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Made-in-China Drones Beam Hong Kong Protests to Beijing & Beyond

By Brian Bremner and Clement Tan

Oct. 1 (Bloomberg) — Hong Kong’s street protests, pepper spray and tear gas have mesmerized TV and Internet audiences worldwide. Beaming them are drones with a “Made in China” tag.

The Apple Daily newspaper captured the breadth of pro-democracy demonstrations in Hong Kong using a pair of Phantom 2 drones, made by DJI Innovations, a company based in the Chinese technology hub of Shenzhen, an hour’s train ride from the former British colony. The drones can capture footage no cameraman can get on the ground, giving the world a panoramic view of the protests.

The aerial cinematography has elicited social media commentary critical of China’s efforts to have candidates for Hong Kong chief executive vetted by a committee that protesters contend answers to Chinese leadership. Praised under different circumstances earlier by people including Sequoia Capital Chairman Michael Moritz as a sign of China’s growing prowess in technology, the drones are a symbol of modern media coverage as much as a consternation for those who want to control the media.

“With these drones we now have a bird’s eye view that photographers cannot reach or produce,” said Leo Cheng, Apple Daily’s photography director.

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China Military Trump Vacationers as Drills Ground Flights

By Clement Tan and Jing Jin

Aug. 8 (Bloomberg) — Shen Zhihong arrived at Shanghai’s Pudong International Airport looking forward to a vacation at the beach only to find his flight delayed indefinitely and his holiday plans at the mercy of the People’s Liberation Army.

The 64-year-old retired professor was among thousands to have their travel obstructed last week when more than 900 flights at Shanghai’s two airports were canceled as the Chinese military staged exercises in the East China Sea. That was the most of any city in the world and more than those of the New York and Chicago metropolitan areas combined, according to Flightstats, a website that compiles airline data.

“We understand and support the needs of national defense,” Shen said as he waited to fly to the port city of Dalian with a group of former colleagues from Fudan University, where he used to teach. “But we hope there will be less and less impact on civilian flights.”

Delays at Chinese airports, ranked the world’s worst, highlight the tensions in a nation home to a swelling middle class and a ruling party with a 65-year monopoly on power that’s intent on strengthening its military. At stake is the growth of a commercial aviation market that trails only the U.S. in size and needs the PLA to cede airspace to China Southern Airlines Co. (1055) and other carriers to increase routes.

“The Western world’s been following a different model where civilians take priority,”said Geoffrey Cheng, head of transportation research at BOCOM International. “The aviation market has been developing in China at the discretion of the military releasing airspace.”

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Chinese Plant in Fatal Blast Described as Dusty Deathtrap

By Clement Tan and Alexandra Ho

Aug. 6 (Bloomberg) — The metal dust produced from polishing wheels at Kunshan Zhongrong Metal Products Co.’s factory was so intense it seeped through Lu Qingmei’s face mask and coated her nose and mouth. After two days, she quit.

“When you go onto the production floor, you’re covered in gray dust in less than half a day,” the 25-year-old said of her stint in February at the Chinese factory, which finishes rims that end up in vehicles made by General Motors Co. (GM) and other carmakers. “It was dirty and tiring to work there.”

The decision to quit may have saved her life. Last week, a fireball ripped through the workshop, killing at least 75 workers and injuring 185 in China’s deadliest industrial disaster in more than a year. Not everyone’s been identified, including Lu’s sister-in-law.

The blast — state media said it was triggered by tiny aluminum and magnesium flakes that caught fire — has prompted China to announce a nationwide overhaul of safety practices, and reignited concern about occupational hazards in the world’s second-largest economy. Combustible dust, which has long bedeviled factories worldwide, was cited in at least four previous explosions that killed 26 people at Chinese industrial sites since 2009.

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