Low-cost carriers take off in China

Costs are kept low in interesting ways
There is explosive growth in the last big market ripe for low-cost carrier penetration, China, where more and more companies are encouraging employees to fly on budget airlines.
China’s civil aviation administration started encouraging budget airlines to take off in late 2013. LCCs’ share of the country’s domestic market is now expected to more than double from the current 7% by 2020.
Overall, China is the world’s fastest-growing major airline market with a passenger volume of 392 million, rising by 10% a year. It is expected to overtake the United States as the world’s biggest air-traffic market in the next 10 years.
China has four budget carriers – West Air, part of the same group as Hainan Airlines, China United Airlines, which is affiliated to China Eastern, Spring Air and the latest to take off, 9 Air. Costs are cut in interesting ways, for example getting cabin crew to clean up inside the plane after every flight.
“Low-cost travel has become a lifestyle,” says the marketing chief of a Beijing software company.


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