High-speed rail in southern China could challenge Dragonair, but only under combination of factors

The convergence of China's domestic high-speed rail as well as high-speed rail linking mainland China with Hong Kong could potentially undermine Dragonair's southern China network, a possibility the carrier is increasingly beginning to consider.

With HSR not due to link Hong Kong until 2015, there is time for this scenario to evolve.

Any impact to Dragonair and other carriers would have to occur with an alignment of factors. Currently at least this seems more unlikely than likely: low HSR ticket prices, convenient station locations, maximum train speeds and integrated border control.

There is also the possibility Dragonair and other carriers could swap routes for others as Hong Kong Airport slots become more scarce.