Date
19 November 2017

Fuel costs, fees to weigh on budget carriers, paper says

China’s low-cost airlines will struggle to make inroads this year as they battle high fuel costs and a lack of state support on fuel and airport fees, Shanghai Daily reported Wednesday, citing an industry analyst. Eric Lin, director at UBS Investment Research Asia Transport, said domestic budget airlines also face fierce competition from the major state-owned airlines such as Air China, China Eastern Airlines and China Southern Airlines. “The Chinese low-cost airlines can hardly achieve low cost without policy support on fuel purchase and airport fees,” Lin was quoted as saying.

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