High-speed rail to make inroads into China’s domestic airline market

China’s domestic airlines, battered by a tumultuous 18 months of external events including a series of natural disasters and the global financial crisis, are facing up to another threat to their future livelihoods: high-speed rail. A significant plank of the Chinese Government’s ambitious high speed rail network came on line this week, with the opening of the 1,000 km link from Guangzhou to Wuhan linking two of China’s most significant population and economic centres. [1026 words]

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This report contains the following subheadings:

• High speed rail encourages a strong competitive response
• South Korea and Taiwan domestic traffic slashed by high-speed route
• Outlook: New route opportunities needed for airlines as domestic rail expands

This report contains the following charts and tables:

• China’s current and future high speed rail network: As at Dec-2009
• South Korea domestic airline capacity (seats per week), Nine months to Sep: 2001 to 2009
• Taiwan domestic airline capacity (seats per week), Nine months to Sep: 2001 to 2009