Chinese carriers in for the long haul but face stumbling blocks along the way

There is no doubt that Chinese carriers will be a force to be reckoned with. They are working with the world's largest population and when travel propensity increases this will quickly make China the biggest market; they have the potential to maintain a low cost base; and they have favourable geography - through hubs in each corner of the country they will be able to route traffic efficiently, their sixth-freedom operations posing a threat to existing hubs in Asia and the Middle East. Realising all of this remains a question of when, how and with whom.

Long-haul aircraft deliveries are scheduled to pick up around the middle of the decade and ensure expansion (the short-term deliveries are mostly single-aisle equipment). The key will be to ensure profitable expansion. Service delivery and international marketing still lags noticeably. Functional non-Chinese-language websites can be a novelty.

The following is an extract from the special China edition of Airline Leader, CAPA's management journal for CEOs. Click on the side panel on this page to obtain full access to the soft copy.