Low-budget carriers flying high

0 CommentsPrint E-mail Global Times, December 24, 2010
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Overseas budget carriers such as Singapore-based Jetstar Asia are poised to expand their Chinese networks to grab a bigger piece of the air travel market.

"We are expanding destination networks in the North Asia region, especially for long- and short-haul flights connecting China," said Chong Phit Lian, chief executive officer of Jetstar Asia, according to a press release issued Wednesday.

Jetstar also said it will add around 50 aircraft to its fleet in the next five years and plans to introduce the Boeing 787 Dreamliner into its operations in late 2012.

Chong attributed the growth to the rising business and travel market between China and Singapore, as bilateral trade reached $51.22 billion in the first three quarters of this year, a year-on-year growth of 31.1 percent.

Zou Jianjun, a professor with the Civil Aviation Management Institute of China Thursday told the Global Times that based on the popularity of low-cost carriers among budget travelers, it is possible more budget airlines will spring up in China.

Currently, Malaysia-based Airasia airline has started 23 new flights to 10 destinations, including Shenzhen and Guangzhou in Guangdong Province, with 201 flights per week.

Last month, Jetstar Asia started flights to Guilin, Guangxi Zhuang Autonomous Region, the third destination after Shantou in Guangdong and Haikou in Hainan.

However, Cao Yin, a consultant with Frost and Sullivan, told the Global Times Thursday that budget carriers in China may face rising costs.

"China does not have any airports specifically designed for low-cost carriers like Japan (which may be a problem)."

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