New flights between Taiwan and Shanghai operated by China Southern Airlines and Taiwan’s Far Eastern Air Transport are undercutting the established competition, reported South China Morning Post. In December the carriers started providing daily charter flights with a brief stop in Laoag in the northern Philippines. A China Southern official said the service, which has been operating 70-80 per cent full, costs about Yn3,200 for a return trip. This is compared with an economy class return trip of Yn3,750 via Macau and Yn4,000-5,000 via Hong Kong. A marketing executive at China Eastern Airlines commented: “This is really hurting our interests.”
Shanghai officials say that about 200,000 Taiwanese work in and around Shanghai, although other estimates are higher.
In a separate development, a subsidiary of China Southern has opened a new route between Macau and Guiyang, capital of Guizhou province. Guizhou Airlines will operate the new service each Wednesday.