Air China's Melbourne-Shenzhen route application an example of China's network fragmentation
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.
Inclusions | Content Lite User | CAPA Member |
---|---|---|
News | ||
Non-Premium Analysis | ||
Premium Analysis | ||
Data Centre | ||
Selected Research Publications |