Spring Airlines Takes on China State-owned Giants
- 12 years ago
A small budget airline, Spring Airlines is taking on state-owned airlines in China.
The state-owned carriers who have dominated the industry are Air China, China Southern and China Eastern.
In a country where state-run industries control the market, Spring Airlines is offering fares thirty percent lower than the state-owned airlines.
It now has almost 60 routes in China and 7 overseas—making it China's most successful private airline. And it is challenging the state-run carriers.
[Wang Zhenghua, President, Spring Airlines]:
"Whenever we open up a new route they get tense. And sometimes may have an unfriendly attitude."
While there's a push for more privatization of industries dominated by state-owned giants, Wang's battle continues.
[Wang Zhenghua, President, Spring Airlines]:
"The state-owned airlines' business is still growing fast and they are making money, why would they privatize? So this road will be a long one."
Wang also founded China's biggest travel agency, Spring Tour and was able to direct customers to choose his airline. Special deals and flights as little as 20 US dollars are also having an impact.
Although cheap flights are putting pressure on China's airline giants, the market is far from being in free fall.
[Wang Zhenghua, President, Spring Airlines]:
"When Spring Air started in 2005 it sold some promotional tickets for about 10 US cents. But that quickly stopped after the aviation authorities threatened it with a fine."
With China's middle class expanding and air travel increasing the competition for a market share will continue to create good deals even as we see the economy slow.
[Li Shuang, Spring Airlines Passenger]:
"If the tickets cost the same then of course I would choose a state-run airline. Because even though the flights are short, they still give out a free bottle of water or snacks."
So while its flights may be full, Spring Air will continue to face tough competition by the state-owned airlines.
For more news and videos visit ☛ http://english.ntdtv.com
Follow us on Twitter ☛ http://twitter.com/NTDTelevision
Add us on Facebook ☛ http://on.fb.me/s5KV2C
The state-owned carriers who have dominated the industry are Air China, China Southern and China Eastern.
In a country where state-run industries control the market, Spring Airlines is offering fares thirty percent lower than the state-owned airlines.
It now has almost 60 routes in China and 7 overseas—making it China's most successful private airline. And it is challenging the state-run carriers.
[Wang Zhenghua, President, Spring Airlines]:
"Whenever we open up a new route they get tense. And sometimes may have an unfriendly attitude."
While there's a push for more privatization of industries dominated by state-owned giants, Wang's battle continues.
[Wang Zhenghua, President, Spring Airlines]:
"The state-owned airlines' business is still growing fast and they are making money, why would they privatize? So this road will be a long one."
Wang also founded China's biggest travel agency, Spring Tour and was able to direct customers to choose his airline. Special deals and flights as little as 20 US dollars are also having an impact.
Although cheap flights are putting pressure on China's airline giants, the market is far from being in free fall.
[Wang Zhenghua, President, Spring Airlines]:
"When Spring Air started in 2005 it sold some promotional tickets for about 10 US cents. But that quickly stopped after the aviation authorities threatened it with a fine."
With China's middle class expanding and air travel increasing the competition for a market share will continue to create good deals even as we see the economy slow.
[Li Shuang, Spring Airlines Passenger]:
"If the tickets cost the same then of course I would choose a state-run airline. Because even though the flights are short, they still give out a free bottle of water or snacks."
So while its flights may be full, Spring Air will continue to face tough competition by the state-owned airlines.
For more news and videos visit ☛ http://english.ntdtv.com
Follow us on Twitter ☛ http://twitter.com/NTDTelevision
Add us on Facebook ☛ http://on.fb.me/s5KV2C