Major European carriers are competing for Chinese passengers with low fares and tour promotions in the slow winter season as the market becomes crowded with new players and more flights.

Leading the price war is Virgin Atlantic Airways, which just announced a 3,777 yuan (US$466) round-trip fare between Shanghai and London for economy class seats through the end of this year.

The price is the lowest offered on China-British routes and beats the 3,990 yuan promotional fare offered by British Airways, the UK's flagship carrier in June.

Before Virgin Atlantic's announcement, economy fares on the route hovered around 4,500 yuan.

British Airways came up its own special promotions in response to its archrival's price cut.

The biggest UK carrier, which has dominated the Beijing market and hopes to break Virgin's hold on Shanghai, launched several special offers since it started service in Shanghai in June, especially when Britain opened its tourism market to China in July.

For instance, any passenger who buys a BA 5,990-yuan round-trip economy class ticket from Shanghai or Beijing to London before December 15 can take along a child under age 12 for free.

In addition, the traveler can go to other UK cities or designated European cities for an additional 1,000 yuan.

A winter package will run through the end of March featuring a two-night stay in a three-star hotel plus a round-trip ticket from Shanghai or Beijing to London for 6,390 yuan.

BA now runs five flights a week from Shanghai or Beijing to London.

Air France said this month it's offering a 8,000 yuan package for passengers starting from Beijing, Shanghai and Guangzhou to selected destinations in France via Paris. The price includes a round-trip ticket and five nights' stay in a twin-share room in luxury Sofitel hotels in France.

Lufthansa German Airlines also started a winter promotion offering a 5,500 yuan round-trip fare for passengers flying from Shanghai or Beijing to Europe from tomorrow to January 15.

(Shanghai Daily November 14, 2005)