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Jan27
Air rail competition in China
With the start of high speed trains between Guangzhou and Wuhan and Changsha, China Southern Airlines decided to fight back. It increased frequencies, decreased fares (some were available at two-thirds of the rail fare), introduced dedicated check-in and baggage reclaim, introduced fast-track security clearance and mobile phone check-in and boarding.
Result? A 5% drop in air passengers on the 819km Wuhan route and a larger reduction on the 555 km Changsha route. Load factors on the latter went down by 7 percentage points.
China Southern is now considering co-operation rather than competition - possibly some kind of code-share like those with Deutsche Bahn (German Railways) between Frankfurt and Stuttgart, Cologne and Bonn.
It - and other airlines contemplating the same course of action - could do worse than join IARO. We have a lot of experience in this field, and have also produced a report on, "Case studies on cooperation between air and high-speed rail" which brings together much information on the topic. Have a look at our web-site! This is www.iaro.com - The web-site of the International Air Rail Organisation.
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