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Domestic airlines make overseas push

Domestic airlines make overseas push

Write: Edrea [2011-05-20]

Private-run Spring Airlines is expected to inaugurate its maiden international flight from Shanghai to Ibaraki, Japan next Wednesday, the latest move as domestic players turn toward the international market.

Air China said last Wednesday that it is in talks with Boeing and Airbus on the wide-body order, which will include Airbus A350 and Boeing 787 aircraft.

Although Liu Chongzhou, a marketing rep from China's largest international airline, Monday told the Global Times that "the introduction is driven by passenger demand," it is widely believed to be a move to increase its international transport capacity.

Air China operates 256 Airbus and Boeing aircraft that serve 30 countries and regions.

China Southern, the largest airline in terms of fleet size, is developing flights to Southeast Asia and Australia.

"The international flights from Guangzhou will be increased to 496 by 2015, with an annual growth of 20.7 percent," Tan Wangeng, general manager of China Southern Airlines, said last Friday.

Also, Li Jiaxiang, head of Civil Aviation Administration of China, said earlier this month that supporting international flights is one of the key projects in the second half of this year, and they are "considering subsidizing international long-distance flights".

Reports show that the revenue per kilometer in June for the three giants, Air China, China Southern and China Eastern, was up by 32.1, 75.1 and 92.9 percent year-on-year.

Experts, however, doubt the recent push will be able to unseat foreign giants any time soon.

"Domestic firms are trailing their international peers because their small number of flights, weak international air traffic rights, and poor marketing," said Li Yike, a senior consultant from Singapore-based Kent Ridge Consulting, a specialist in the aviation sector.