Chinese airlines to launch air-rail links in competition with high speed rail

By UNCLLS payday loans

Sunday, 10 Apr 2011 05:36
High Speed RailSince last May, four domestic air routes have been scrapped as a result of competition from high-speed railways, including two in the past two weeks.

“Airlines have started to alter strategies as our businesses have been suffering from competition with high-speed railways. China Southern itself operates 38 routes that are in direct competition with the railways, and almost 800 of our flights are affected every week,” China Southern Airlines Co. Ltd. Chairman Si Xianmin said.

Other airlines including China Eastern Airlines Co. Ltd., Air China Ltd. and budget carrier Spring Airlines Co. Ltd. are also planning to launch air-rail link services.

Nearly 70% of the routes covering a distance of less than 600 kilometres from Wuhan have been cancelled as a result more services provided by high-speed railways, the official Xinhua news agency reported, citing statistics from airline companies, travel agencies and airports.

Wuhan Tianhe Airport — a strategic airport hub in central China — saw an 8.52% year-on-year drop in passengers to 677,700 during the Spring Festival break, which fell in early February this year, the first decrease in 23 years, according to Civil Aviation Administration of China statistics.

Over the same period, the seat occupancy ratio on the Wuhan-Guangzhou high-speed railway increased by more than 60% year-on-year.

Source: Beijing News


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