Ticket prices between Shanghai and Beijing dropped over 40
percent on August 10, the first decline since five domestic
carriers entered into a cooperation agreement on August 6 designed
to streamline travel between the two cities.
Ticket prices between Shanghai and Beijing dropped over 40
percent on August 10th, the first decline since five domestic
carriers entered into a cooperation agreement on August 6 designed
to streamline travel between the two cities.
The listed ticket price on ctrip.com, one of the most popular
national online booking services, fell to as low as 340 yuan
(US$45) after a generous discount of 70 percent from Hainan
Airlines. This is in sharp contrast to the previous four days, when
airline ticket discounts from Shanghai to Beijing hovered around 10
percent.
Air China, China Eastern Airlines, Shanghai Airlines Co Ltd,
China Southern Airlines Co Ltd, and Hainan Airlines have
rescheduled their daily flights to guarantee departure every
half-hour. Passengers traveling between the two cities are now able
to change their flights among the five airline companies if they
encounter delays.
Ticket prices increased 10 to 30 percent after the cooperation
began among the five airline companies. According to industry
insiders, the narrow range of ticket prices would help the airlines
to push forward with their cooperation. However, passengers alleged
the cooperation was just an excuse for the carriers to raise their
ticket prices.
With the cost of a ticket ranging from 790 yuan (US$104) to 1130
yuan (US$150), air travel became less attractive compared to
railway traffic, whose single 10-hour tour between Beijing and
Shanghai is priced at no more than 600 yuan (US$79). On August 7,
the Civil Aviation Administration of China expressed its
expectation for the five airline companies to readjust their ticket
prices in a bid to enhance competition.
An official from China Southern Airlines Co Ltd said the high
discounts from 60 percent to 90 percent make it impossible for
airline firms to profit in the busy season, like June and August,
when the rates of occupied seats in flights are high.
The cooperation is still in the initial stage, with trial
operation scheduled through October 27. Flights of Air China and
China Eastern Airlines dominate the route. The two companies have
25 flights flying in a single route between Beijing and Shanghai,
while the other three companies only have 10 flights.
(China.org.cn by Wu Qin, August 10, 2007)