An investment bank report says, in the second half of next year, China's three major airlines face the threat of competition from high-speed railway, and that domestic traffic capacity will be reduced in the next two years, while the price competition will be increased.
It says that, according to the analysis of each route, under the impact of high-speed railway development, the domestic traffic capacity of three airlines - Air China, China Southern and China Eastern will loss 6.1% in total, and it will even reached 13.2% in 2012.
The bank analyst Ingrid Wei said in the report, " we expect the profitability of the aviation industry peaked in 2010, two years later it will decline."
From: People Network |
A survey done by the National Tourism Administration showed that among 20000 travel agents nationwide in 2009, the annual revenues is 180.653 billion yuan, however, net profit is only 1.148 billion yuan totaled, net profit margin is only 0.64%.
In the 3 large markets- outbound travel, domestic travel and inbound travel, outbound and domestic travels went up by 6.92% and 11.79%, while inbound travel decreased by 1.21%.
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