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Private airline enters world market

August 9, 2010  Filed under Business  

By Li Zhixin

Spring Airlines, a private, budget airline, launched its first international air route from Shanghai to Ibaraki, Japan last Thursday. It is the country’s first private airline to operate an international route.

Ibaraki airport, zoned for military and civilian use, is 80 kilometers outside Tokyo. The new route, serviced by an Airbus A320 aircraft, is scheduled to fly every Monday, Wednesday and Friday.

Flights are still chartered, as the company is not approved by the Civil Aviation Administration to conduct regular international service. Packaged seats are sold by Spring Travel Service.

Current package includes a round-trip ticket from Shanghai to Ibaraki, entry passes to scenic sites and five nights in a hotel for 5,899 yuan: a package without the entry passes costs 3,899 yuan.

The airline said it will begin selling non-package tickets after it is approved to run regular international routes. Discounted fares could cost as little as 599 yuan, it said.

International service has long been regarded as the weak point of domestic airlines due to low profitability.

“Although we can’t compete with major carriers that have already developed international routes connecting major cities, we can cooperate with second-tier cities where landing fees are much cheaper,” said Zhang Wuan, the airline’s spokesman.

With the rapid development of new high-speed rails, domestic airlines are losing their competitive advantage. Like Spring Airline, the private Juneyao Airlines is looking to the air commission for approval to begin its own international flights.

The overseas travel market has been bolstered by the appreciation of the yuan, said Li Xiaojin, director of air transportation economic research at the Civil Aviation University of China.

“There are more and more Chinese people hoping to travel abroad,” Li said. “China’s international transportation market is growing 40 percent year on year. There is still a lot of opportunity in the international market for private airlines.”

 
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