Money-losing airlines in competition with money-losing railroads. Isn’t Communism great? Certainly, great for the consumer – while it lasts! Remember the glory days of airline deregulation in the US – and then look at the situation today.
Chinese airlines in a price war race to the bottom - Asia Times
Chinese state-owned airlines have joined an intensifying price war, although unwillingly, amid challenges including local passengers’ weakening spending power and rising market competition. Air China, Southern Airlines and Eastern Airlines have been facing huge losses for five years since the Covid-19 pandemic broke out in early 2020. …
The price war is intensifying this year. Many Chinese airlines now offer domestic round-trip tickets at about 200 to 300 yuan (US$28 to US$42), as it is a low season before the summer holidays. Round-trip tickets to remote cities are 80- 90% off, while those to key cities like Beijing are 40-50% off. Budget airlines such as Spring Airlines and Juneyao Air are growing fast in this price war. …
Citing Civil Aviation Administration of China (CAAC) data, Xinhua reported in March that 38 airlines will open 640 new domestic flight routes this year … The CAAC also allowed 193 local and foreign airlines to add 22,946 new international passenger and cargo flights per week in 2025 …
Currently, the central government does not intend to stop the price war or reduce competition in the airline industry. “The decline in air ticket prices is good news for the tourism market as it can effectively boost the number of tourists and create growth for related industries such as hotels, catering, transportation and retail,” …