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Spring Airlines in major move adds flights from Hong Kong to Chongqing, Hangzhou, Nanjing and Xiamen

Analysis

At CAPA's World Aviation Summit in Hong Kong on 28 & 29 Nov-2012, Spring Airlines announced a significant expansion of its services between Hong Kong and mainland China, a high-demand market that has only recently seen competition. Spring's addition of services from Hong Kong to Chongqing, Hangzhou, Nanjing and Xiamen supplement its three daily flights between Hong Kong and its base at Shanghai.

The once-stagnant market is seeing rapid change and competition with fledging carrier Hong Kong Airlines, invigorated mainland carriers, a tie-up between Hong Kong Airlines and China Eastern as well as the forthcoming entry of planned LCC Jetstar Hong Kong.

Spring commenced services in 2005 as a LCC but is moving away from a strict interpretation of the model at it seeks higher yields, hybridising as other former LCCs have done. Its advantage and platform for growth is efficiency, which is generally lacking in China's state-owned airlines.

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