China Eastern Airlines to launch budget carrier
Published on Jul 2, 2014 6:41 PM
HONG KONG (AFP) - China Eastern Airlines said Wednesday it would transform one of its units into a budget airline, the first Chinese state carrier to do so.
China's second biggest airline by passenger volume said its Beijing-based domestic carrier China United Airlines would become a low-cost flyer as the country liberalises its commercial aviation market.
"We believe the low-cost carrier market has enormous growth potential in China given its low penetration rate," the airline's company secretary James Wang said.
Ticket prices may be reduced by up to 40 per cent, the company said according to the official Xinhua news agency, as it seeks to compete with several private budget carriers already operating there, including Spring Airlines and Juneyao Airlines.
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