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China Eastern searches for new revenue sources
By Winny Wang |
February 19, 2009, Thursday
|
Online Edition
Online Edition
CHINA Eastern Airlines plans to develop revenue sources and spur demand by opening 900 more indirect routes and charging higher fees on special seats to fight the fallout from the economic downturn.
The first row of seats in economy class and seats beside emergency exits are more popular among passengers because of the extra room, so the carrier is considering offering less discounts on these seats.
A marketing official with the country's third-largest carrier said that tickets for the special seats could be sold at a 30 percent discount if other seats in economy class are sold at a 40 percent discount.
There are about 10 such special seats on a plane normally and the tickets will be sold only on the carrier's Website. The plan targets high-end customers who can't afford higher ticket prices in business class and first class, the official said.
The carrier has also given passengers more flight options, including indirect links, between cities. Passengers can get lower prices on indirect routes.
China Eastern will also cancel or reduce direct flights on some unprofitable routes, it said.
The Shanghai-based carrier has mapped out 256 cost-cutting measures to save 3 billion yuan this year.
It has secured a 7-billion-yuan cash injection from the central government and won credit lines totaling 35 billion yuan from the Agricultural Bank of China, Shanghai Pudong Development Bank Co and the Bank of Communications Co in the past two months.
Liu Shaoyong, chairman of the carrier, said on February 3 it would reduce capacity growth to 5 percent this year from the previously planned 13 percent, and it expected 10 percent growth in passenger volume.
The first row of seats in economy class and seats beside emergency exits are more popular among passengers because of the extra room, so the carrier is considering offering less discounts on these seats.
A marketing official with the country's third-largest carrier said that tickets for the special seats could be sold at a 30 percent discount if other seats in economy class are sold at a 40 percent discount.
There are about 10 such special seats on a plane normally and the tickets will be sold only on the carrier's Website. The plan targets high-end customers who can't afford higher ticket prices in business class and first class, the official said.
The carrier has also given passengers more flight options, including indirect links, between cities. Passengers can get lower prices on indirect routes.
China Eastern will also cancel or reduce direct flights on some unprofitable routes, it said.
The Shanghai-based carrier has mapped out 256 cost-cutting measures to save 3 billion yuan this year.
It has secured a 7-billion-yuan cash injection from the central government and won credit lines totaling 35 billion yuan from the Agricultural Bank of China, Shanghai Pudong Development Bank Co and the Bank of Communications Co in the past two months.
Liu Shaoyong, chairman of the carrier, said on February 3 it would reduce capacity growth to 5 percent this year from the previously planned 13 percent, and it expected 10 percent growth in passenger volume.
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