Load factor starts to fall due to Beijing-Shanghai high-speed rail

Air China Vice President Fan Cheng stated the effect of the high-speed rail on air services to Jinan, Xuzhou and Nanjing is greater than the effect on the Beijing-Shanghai sector (Yicai, 06-Jul-2011). According to Mr Fan, the carrier's Shandong Airlines subsidiary has seen a 10% to 20% reduction in passenger traffic on its Beijing-Jinan sector, on which it is the sole operator. Load factor on air services between Tianjin and Shanghai Hongqiao has declined by 8 ppts in the first three days, 01-Jul-2011 to 03-Jul-2011, following the opening of the Beijing-Shanghai high-speed rail link when compared with the load factor in Jun-2011 (Carnoc.com, 06-Jul-2011). The average load factor between Beijing and Nanjing fell from 85% in Jun-2011 to 65% while load factor on the Beijing-Jinan sector fell from 80% in Jun-2011 to 50%.