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China Airlines to Cut Flights
5 June 2008
People’s Daily. China Southern Airlines and China Eastern Airlines said they plan to cut long-haul international flights to reduce costs.
“Besides the soaring fuel prices, a major pressure is from the declining domestic and international market demand arising from the weaker international economy,” Luo [Zhuping, board secretary of China Eastern] told China Daily yesterday.
The occupancy rate in April fell 0.2 percent, 4.5 percent and 0.4 percent from last year for domestic, international and regional flights respectively.
China Southern Airlines said earlier this week that it will cut services on more than 20 international flights, including to Los Angeles, Paris and Singapore. Two other major airlines, Air China and Shanghai Airlines, said they had no plans to trim flights at the moment but will take other actions to reduce costs.
Deng Qingping, an analyst at Tebon Securities, said the Chinese airline market is expected to work through the market cooldown and revive around the Olympic Games in August as international flights for that period have mostly been booked out.
June 5, 2008 in Brief | Permalink | Comments (2) | TrackBack (0)
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Posted by: litesong | June 05, 2008 at 03:16 PM
It was bound to happen to any industry trying to grow too fast. The Chinese economy will continue to struggle in face of international criticism of a poor human rights record. Too little too late.
Posted by: | June 05, 2008 at 09:50 PM
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The drop in Chinese airline international flights dropped 4.5%, nearly the same as Vehicle Highway Miles on U.S. roads. We got different cultures, but we both understand the cost of a gallon of car or airplane jungle juice.