Communication Problem Caused Lack of Flights Between Xi'an and Chengdu, Aviation Administration Says
Liao Shumin
DATE:  Nov 14 2017
/ SOURCE:  Yicai
Communication Problem Caused Lack of Flights Between Xi'an and Chengdu, Aviation Administration Says Communication Problem Caused Lack of Flights Between Xi'an and Chengdu, Aviation Administration Says

(Yicai Global) Nov. 14 -- The Civil Aviation Administration of China (CAAC) responded to media reports that the upcoming opening of the Xi'an-Chengdu high-speed rail line led to the suspension of direct flights between the two cities, CNR reported.

Once the Xi'an-Chengdu high-speed rail is in service, whether flights between the two cities will be adjusted or reduced will depend on market reactions, said CAAC Transportation Department Deputy Director Yu Biao. A communication problem caused the recent lack of flights on the route, said Yu.

"Within a distance of 800 kilometers, high-speed rail has a clear competitive edge on civil aviation," Yu said. "This is beyond doubt. Therefore, considering the market situation, airlines had adjusted their flight schedules. As this adjustment coincided with the arrival of a new flight season, no direct flights had been arranged for the new flight season."

"However, as the Xi'an-Chengdu high-speed rail has not been put into operation on schedule as reported and expected by the media, there was a vacuum period in the market," Yu said. "In this period, there was market demand, but no direct flight had been arranged yet."

The CAAC and aviation authorities in southwestern and northwestern China quickly worked with airlines to make flight arrangements after the void became apparent, Yu said.

"At present, there are 13 flights between Chengdu and Xi'an, roughly the same as in the last flight season, and this satisfies market demand," he said.

From another perspective, this issue reflects airlines' increased sensitivity to market situations, Yu opined. With the rapid growth of high-speed rail in recent years, civil aviation faces growing competitive pressure, he said.

China Eastern Airlines Corp. Ltd. [SHA:600115; HK:0670; NYSE:CEA] has arranged direct flights every day until the end of this month. It has not arranged direct flights after Dec. 1.

Sichuan Airlines Co. has arranged daily direct flights between Xi'an and Chengdu for the month of December. Sichuan Airlines will reduce the number of Xi'an-Chengdu flights to one round-trip flight per day from Jan. 1, 2018 onwards.

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Keywords:   Airline,High-Speed Rail