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Air China chairman: No plans to invest in LCCs at present, Chinese market not yet suitable

4-Jun-2013 11:43 AM

Air China chairman Wang Changshun, speaking on the sidelines at the IATA annual general meeting in Cape Town, said the carrier will not consider entering the low cost market at the moment as the domestic operating environment is not ideal for LCCs (China Securities Journal, 03-Jun-2013). Mr Wang said Chinese carriers are not able to reduce costs relating to the introduction of aircraft, landing fees and fuel prices among others. Mr Wang, however, added the carrier will “take another look” in the future as the environment changes and may consider diversification or develop an LCC.