27-Jul-2011 10:22 AM

Airline fares rise amid high-speed rail caution

Air China senior marketing manager Xu Junqing stated the carrier has "seen a rebound in load factor on Beijing-Shanghai route since the inauguration of high-speed railway between the two cities" (Shanghai Daily, 27-Jul-2011). Mr Xu said with rail ticket prices expected to rise further more passengers may choose to travel by air as a safer option after a HSR incident over the weekend. The carrier has deployed B777-300ER equipment on the Shanghai-Beijing sector, the nation's most profitable route, this week. Meanwhile, China Eastern Airlines investor relations officer Ni Wei stated the average one-way fare on the Shanghai-Beijing sector was CNY905 (USD140) oneway and before tax and fuel surcharges as of 24-Jul-2011, compared to CNY825 on 01-Jul-2011 (Bloomberg, 26-Jul-2011). Ctrip.com stated the despite a rise in fares, Xiamen-Hangzhou services were sold out at full price as of 27-Jul-2011 (Xinhua/What's on Xiamen, 27-Jul-2011). In addition, Xiamen-Shanghai tickets will be sold at full price next week, with the highest fares standing at nearly double the normal price, Ctrip.com added.