Chinese airlines are facing the prospect of canceling once-profitable domestic routes owing to increasing competition from high-speed rail. Spring Airlines, the country's most successful LCC, has stopped flying from Shanghai to both Zhengzhou and Wuhan because it was losing passengers to the train. "Currently our solution is to avoid opening short-haul routes that are shorter than 1,000 km.," a Spring spokesperson said.Sichuan Airlines will shutter its Chengdu-Chongqing service on Nov. 16 as loads have fallen below 50%.
China Southern Airlines Chairman Si Xianmin recently admitted that high-speed rail is a more attractive option for passengers because of its better safety record, convenience and lower fares. "We have more than 160 domestic routes, with about 38 competing against high-speed rail. Most of China's big cities and secondary cities will be connected by high-speed rail by 2020, which will have a big impact on domestic carriers," he said. In response, CZ intends to expand its international network and allocate more capacity to profitable international routes. It plans to raise its proportion of international routes from the current 17% to 20% in the next 3-5 years.
by Katie Cantle
ATWOnline
China Southern Airlines Chairman Si Xianmin recently admitted that high-speed rail is a more attractive option for passengers because of its better safety record, convenience and lower fares. "We have more than 160 domestic routes, with about 38 competing against high-speed rail. Most of China's big cities and secondary cities will be connected by high-speed rail by 2020, which will have a big impact on domestic carriers," he said. In response, CZ intends to expand its international network and allocate more capacity to profitable international routes. It plans to raise its proportion of international routes from the current 17% to 20% in the next 3-5 years.
by Katie Cantle
ATWOnline
