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Changing the game
01 December 2006
China's privately owned carriers are giving the state-controlled airlines a run for their money. Their small fleets and access to financing place them in a favourable position. Alex Lennane reports.
Read more:
Meridian Group; China Southern; Spring Airlines; East Star Airlines
"Tickets. Tickets here. Tickets." The buzz in Shenzhen airport, Guangdong province, is palpable – and remarkable for anyone who has spent much time in China. Not only because the words spoken are in English, but also because this is a view into the future of China's aviation industry. Private airlines have arrived and, against the predictions of many, look as if they are here to stay.
Over at the state-controlled airline desks, business is as usual. One saleswoman has her head on the desk, trying to catch up on some sleep. No one is attempting to sell tickets. Years of losses, subsidies and no competition have led to lacklustre practices, but the private airlines have something to prove.
"The difference in the market is evident," says Lee Perkins, research analyst at the Meridian Group in Hong Kong. "These new airlines must be putting the incumbents under pressure to change their practices."...
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