China crisis for airline industry

southern-china

China Southern Airlines Co,the nation’s biggest domestic carrier,expects traffic to fall by more than half on 518 of its weekly flights as a direct result of a high-speed rail network.

The airline operates approximately 160 domestic routes and of these 38 will compete directly with the high-speed rail network which is due to be completed by 2020.

To maintain profits the airline plans to expand its overseas flights,routes on which the airline still has a competitive edge.

CSA witnessed a 60% drop in traffic when a high-speed rail link opened between Beijing and Taiyuan.

More than 11,185 miles of high-speed rail lines will be constructed in China by 2020,with train tickets expected to be approximately 40% cheaper than air travel.

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