Jane Chen / Shanghai Daily news
Carriers are revving up the competition for flights between China and
Britain, betting on a business boom on the route after July, when the United
Kingdom will be opened to Chinese tourists, today's Shanghai Morning Post
reported.
British Airways, the UK's largest international airline, announced
it was adding seats its service between Shanghai and London, a key route between
the two countries, to five flights per week as of June 2 and was marking down
the price of a round-trip ticket from the existing 5,500 yuan (US$665) to 3,990
yuan.
Its main rival, Virgin Atlantic Airways Ltd, the other key British
airline that has operated on the route for six years, said it will follow suit
and offer the same 3,990 yuan fare starting in June.
In response,
Shanghai-based China Eastern Airlines Co Ltd has entered the competition with a
plan to lower the price on the route from the present 4,900 yuan to around 3,400
yuan starting in June. The price could be reduced even further to 2,280
yuan for buyers of over 10 tickets.
Virgin Atlantic is regarding the British
Airways' entry as a development resulting from its large ambitions for the
China-London air travel market, according to its China sales and marketing
manager Yang Huifeng.
Yang predicted a 20 percent growth for the
Shanghai-London air route shortly after July, and expected the growth to remain
at around 15 percent after six months.
China Eastern seemed reluctant to
become involved in the price competition. Starting the Shanghai-London
service last year, China Eastern is the third and only Chinese carrier of this
route.
Its spokesperson said the company had no alternative but to follow a
low-price strategy in order to maintain its already low market share.
The
company, along with other domestic carriers, had proposed that China's aviation
industry authority re-introduce a fuel surcharge to help cover increased fuel
costs. But earlier this month, a senior official with the Civil Aviation
Administration of China said the CAAC has no yet plan to re-add the surcharge.