Loading

Air China's Melbourne-Shenzhen route application an example of China's network fragmentation

Analysis

China's CAAC generally only allocates one local airline to an international route, so once a route is flown a Chinese competitor cannot move in. This hub fragmentation risks efficiency. A difficult shake-out is likely in the future. For foreign airlines these developments make route planning more hazardous.

Chinese airlines continue to apply for long haul routes that disrupt the country's tidy plan of having one airline serve a local market. Some routes requested may fit strategically, but they also display an element of tit-for-tat retaliation or pre-empting a local competitor. China Southern took advantage of Shenzhen's home airlines Air China and Shenzhen Airlines, ignoring Shenzhen's long haul market, and opened a Shenzhen-Sydney service. Air China has now applied for Shenzhen-Melbourne service, which China Southern could have served next. Examples are growing weekly.

Read More

This CAPA Analysis Report is 2,934 words.

You must log in to read the rest of this article.

Got an account? Log In

Create a CAPA Account

Get a taste of our expert analysis and research publications by signing up to CAPA Content Lite for free, or unlock full access with CAPA Membership.

InclusionsContent Lite UserCAPA Member
News
Non-Premium Analysis
Premium Analysis
Data Centre
Selected Research Publications

Want More Analysis Like This?

CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More