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People's Daily Online>>China Business

Airlines link up with high-speed rail services (2)

By Wang Wen (China Daily)

13:36, April 24, 2012

Joint ticketing for airlines and high-speed rail lines could be a way for air carriers to profit from China's high-speed rail system, analysts said.

"High-speed rail services heavily affect the business of flights of less than 500 kilometers," said Yuan Huifang, deputy general manager of marketing and sales at Hainan Airlines. "But we want to find a way to cooperate with rail systems."

Yuan said joint ticketing can help both sides get more passengers.

However, it's not easy for airlines and railways to work together.

Hainan Airlines took almost one year to prepare for the program, and it was difficult to combine the two different ticketing systems, said Wang Yue, manager of product development at Hainan Airlines.

Also, joint operation requires convenient transfers, but few Chinese airports can meet that need. For that reason, Hainan Airlines will promote the program more heavily on international destinations rather than adding more domestic cities, Yuan said.

"I believe more railway stations and airports will be built together for joint operations," she added.

Carriers must improve their services to deal with the ongoing expansion of high-speed rail service, analysts said.

As much as 3,500 kilometers of new high-speed rail lines will be built in 2012. The four main north-south routes, including one between Beijing and Guangzhou, will be finished this year, the People's Daily reported in February.

The heaviest competition from high-speed rails won't come until 2013 or 2014, as most of the new lines won't go into service until the end of 2012, said Li Lei, an aviation analyst at CITIC Securities Co Ltd.

Airlines might abandon some feeder flights, which can be replaced by high-speed rail service, while adding flights to other routes, Li said.

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