Competition strategy with high-speed ships of Chinese airlines

Anh Vũ |

Chinese airlines launch free Wi-fi incentives to win back business customers who are gradually quitting flights.

China's largest airlines are rolling out free Wi-Fi on more and more domestic flights, in an effort to attract more passengers, especially businessmen who increasingly favor high-speed trains, according to SCMP.

China Eastern Airlines has just announced the provision of free "basic" Wi-fi services on all wide-body aircraft serving domestic routes. The airline said the Wi-Fi network is applied on 37 routes connecting major cities such as Beijing, Shanghai, Chengdu, Kunming and Wuhan. The airline's two main competitors, Air China and China Southern Airlines, have also provided similar services, but only on a smaller scale.

A representative of China Eastern said that the free Wi-Fi testing since August has received positive feedback. After working at home, many passengers have now switched to working in the air, he said. The airline expects that if the implementation process goes smoothly, the service will be expanded to narrow-body aircraft.

This strategy is considered a step to deal with fierce competition from the high-speed railway system, which is attracting a large number of business customers thanks to its convenience and stable speed.

On busy routes such as Beijing - Shanghai, many people have switched to taking a train, causing the China Air Transport Association to warn that the air travel market is not " leading to erosion".

In the first half of the year, Air China, China Eastern and China Southern all reported losses, which are believed to be due to fierce competition, supply exceeding demand and the impact of the development of bullet trains.

Mr. Peng Peng, Chairman of the Quang Dong Provincial Reform Association, commented that the lack of Wi-Fi on airplanes for a long time is a "big weakness" compared to high-speed trains - where passengers have been provided with Wi-Fi for the past 9 years and can access 5G in most areas.

According to Mr. Peng, passengers who need to connect continuously, such as financial investors, business leaders or people who regularly meet online, tend to choose high-speed trains.

Meanwhile, many foreigners living in China, such as Max Modesti - an Italian restaurant owner in Shanghai - see high-speed trains as more efficient and less stressful, while Jerry Li, an investment fund manager, chose to fly because night flights still operate when trains have stopped running.

Although he affirmed that he did not consider high-speed trains as direct competitors, the China Eastern representative admitted that the relationship between the two vehicles is both competitive and cooperative.

Many passengers still combine both, take the train to the airport and then fly to the final destination. With the implementation of free Wi-Fi networks, Chinese airlines hope to attract back-watching groups of tourists and rebalance the race with bullet trains.

Anh Vũ
RELATED NEWS

The US tightens taxes, Chinese companies sell more

|

President Trump's new tariff has prompted major US technology companies to rush to order robot components from China for storage.

Strong cold air causes China to cool early, preparing to flood into Vietnam

|

A strong cold front is being recorded in China, causing temperatures to drop sharply and is on track to affect Vietnam.

South Korea asks for arrest warrant for 59 online fraud suspect expelled from Cambodia

|

South Korean police have issued an arrest warrant for 59 of 64 suspects deported to Cambodia for participating in a large-scale online fraud ring.

Reasons why people in a village in Phu Tho have personally demolished a series of fences

|

Phu Tho - In Zone 2, Minh Duc Village, Hien Quan Commune, people voluntarily donated land, demolished a series of gates, fences, and trees for the State to build a road.

Checking the case of planting trees near the frontage of a house reported by Lao Dong Newspaper

|

Dak Lak - The authorities are taking action to clarify the incident, clarifying the case of people being upset because the trees were planted right next to the frontage of the house.

Extending the tenure of 3 Senior Lieutenant Generals, appointing 1 Major General

|

Extend the tenure of 2 Deputy Ministers of National Defense; extend the tenure of Deputy Chief of the General Staff of the Army for Senior Lieutenant General Huynh Chien Thang.

Cao Bang's largest gold shop brings gold to the sidewalk for sale

|

Cao Bang - After floodwaters damaged some power systems and the interior, a store was selling gold on the sidewalk.

The US tightens taxes, Chinese companies sell more

Châu Anh |

President Trump's new tariff has prompted major US technology companies to rush to order robot components from China for storage.

Strong cold air causes China to cool early, preparing to flood into Vietnam

Thanh Hà |

A strong cold front is being recorded in China, causing temperatures to drop sharply and is on track to affect Vietnam.

Ông Trump nói mức thuế 100% với hàng hóa Trung Quốc không bền vững

Thanh Hà |

Tổng thống Mỹ Donald Trump thừa nhận mức thuế 100% mà ông đề xuất áp lên hàng hóa từ Trung Quốc là “không bền vững”.