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ECONOMY
Weekly Watch> WEEKLY WATCH NO. 11, 2010> ECONOMY
UPDATED: March 12, 2010 NO. 11 MARCH 18, 2010
Airlines Under Pressure
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The fast development of the nation's high-speed railway network is expected to devour 60 percent of the airline market, said Liu Shaoyong, General Manager of China Eastern Airlines Corp. Ltd., on the sidelines of this year's NPC session.

The high-speed railway network, scheduled to be completed in 2012, will cover most of the economically developed and densely populated areas in China.

Liu said the railway network will pose "direct and prolonged" pressure on domestic airlines.

The bankruptcy of Japan Airlines Corp., who saw its flight numbers decimated by its own domestic high-speed railways and fierce international competition, serves as a reminder to China's domestic airlines of the threat railways present.

But Liu said the airlines have an absolute advantage over railways in distance travel greater than 1,200 km. The annual passenger traffic growth of 15-20 percent might also ease pressures to some extent.



 
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