China Express Airlines planning to transform into a LCC

China Express Airlines reportedly plans to transform itself from a regional carrier into a regional LCC after the carrier launched several low fare promotions with fares from CNY8 (USD1.25) (National Business Daily, 12-May-2014). The carrier stated it will aim to lower its cost per seat through operating an all-Bombardier fleet, improve direct sales and increase ancillary operating revenue. The carrier also noted its decision to transform into a LCC is because the second- and third-tier cities across China have strong demand for low cost travel. In addition, CAAC have since called for the development of LCCs in China. Established in Apr-2006, more than 90% of China Express Airlines' network comprises regional services concentrated around China's southwest region.