High-speed train service hurts China Southern Airlines

China Southern Airlines may start bundling air and train tickets on domestic routes as it struggles to compete with the newly installed high-speed train line between Guangzhou and Wuhan, the South China Morning Post reported. The carrier initially responded aggressively to the new competition, increasing the number of flights between Guangzhou and Changsha and Wuhan to create a shuttle service, cutting ticket prices and speeding up check-in procedures. However, Xie Bin, company secretary at China Southern, admitted that a substantial number of passengers had switched over when the high-speed train service was introduced on December 26. “We are studying to see if we should continue with the shuttle service,” Xie said. Air China and China Eastern Airlines are also likely to come under pressure from high-speed rail services, with the Beijing-Shanghai line is expected to be completed as early as next year.