 The airline fuel price crunch, which IATA CEO Giovanni Bisignani this week called "an extraordinary crisis," is hitting Chinese carriers. China Southern Airlines and China Eastern Airlines are both cutting flights to Asian, European, African and American destinations due to rising costs.
China Southern Airlines will cut flights from Guangzhou to Ho Chi Minh City, Hanoi, Angkor, Hong Kong, Seoul and Singapore for the months of June, July, August and September. Flights to Seoul, Los Angeles, Paris, Sydney, Jakarta, Lagos, Dubai, Delhi, Fukuoka and Penang will be cut as well, a source familiar with the matter told state media.
A senior executive of China Eastern said that there are "plans to cut back flights on certain loss-making international routes," state media reports. Reuters writes that several Chinese airlines have been losing money on "many long-haul routes due to a lack of global networks and inadequate cost controls". The recent increase in fuel costs adds additional pressure.
China Southern operates more than 470 national and international routes with 6,200 weekly flights.
Last update : Tuesday, 03 June 2008
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