mengping_tao2004
Newbie
- Jan 24, 2006
- 5
- 0
The newly-formed privately run airline carrier, East Star Airlines had its maiden flight recently, but the news spread before this, East Star Airlines got collective "confinement" by other players in the same industry, the publicly-acknowledged reason was that it involved the operation against the rules such as 'underground discount' and excessive amount of commission to wholesellers and other ticketing agents. It's reported that Air China, China Eastern, China Southern, Shanghai Airlines, Hainan Airlines, Shenzhen Airlines, Xiamen Airlines and Shandong Airlines had been allied, and issued four 'bans' restricting wholesellers and other agents to sell tickets for East Star Airlines or otherwise face penalties. So some industry analysts commented that East Star Airlines 'has broken its wing' before it even fly to the sky.
The continuous launches of several airline carriers indeed bring a little fresh air for the whole aviation industry in China. The managers of many newly established airline carriers choose the competition strategy of "low price to enter (into the market)" without any public or 'undertable' agreement. It can't be denied that, low price is the "strong magnetic field" that can attract the eyeball of consumers forever, the price war could expand the fames of airlines rapidly in a short time, however, low price also targets the soft rib of old brand airways at opportune moment. So low price stimulates the "allied counter-attack" of old brand airways, and the development of all the situations is right on expectations.
But the price dispute between newly-formed players and old brand airways doesn't stop at a reasonable extent. In contrast, it becomes more and more severe, from the aspect of world outside aviation the situation is in chaos, and is against the initial idea gradually. The writer thinks that, China's aviation market needs not only a "low price catfish", but catfishes in various departments such as "service catfish", "efficiency catfish", "honesty catfish", "innovation catfish". May airline carriers "swim" from the stagnant puddle of price war as soon as possible!(Translation: CARNOC Tao Mengping)
http://en.carnoc.com/list/0/372.html
The continuous launches of several airline carriers indeed bring a little fresh air for the whole aviation industry in China. The managers of many newly established airline carriers choose the competition strategy of "low price to enter (into the market)" without any public or 'undertable' agreement. It can't be denied that, low price is the "strong magnetic field" that can attract the eyeball of consumers forever, the price war could expand the fames of airlines rapidly in a short time, however, low price also targets the soft rib of old brand airways at opportune moment. So low price stimulates the "allied counter-attack" of old brand airways, and the development of all the situations is right on expectations.
But the price dispute between newly-formed players and old brand airways doesn't stop at a reasonable extent. In contrast, it becomes more and more severe, from the aspect of world outside aviation the situation is in chaos, and is against the initial idea gradually. The writer thinks that, China's aviation market needs not only a "low price catfish", but catfishes in various departments such as "service catfish", "efficiency catfish", "honesty catfish", "innovation catfish". May airline carriers "swim" from the stagnant puddle of price war as soon as possible!(Translation: CARNOC Tao Mengping)
http://en.carnoc.com/list/0/372.html
