Originally Posted by
Rutan16
What part of the political imperative set from high office don’t you quite understand .
Chinese carriers do NOT need to turn a profit in the same way Western carries do to deliver shareholder value.
European mainstream carriers including the alliance players can’t compete effectively into and out of the Chinese market much beyond Beijing and Shanghai due to the levels of subsidies offered from regional and central government departments under those initiatives and policies set up by the highest leadership of the PRC.
The Virgin Shanghai -Heathrow route carries an Air China code, however that’s not very useful as they aren’t that big regionally beyond Shanghai.
This service is little more than a quasi charter carrying CAISSA and state approved Chinese tourists with remaining seats available to the market oh and also being a freight truck . Today the flight is very near full both ways with SLF and boxes.
Most of those boxes will have come from the South East and central manufacturing districts and not from Beijing its self.
As alluded to by a n other, carrier box rates from China are pretty low, however that actor is just another coin in the Belt and Road initiative to peddle more Chinese goods into Western markets at silly rates . China does this to reduce and mitigate many of the WTO tariffs again a political play.
Usual mantra applies Chinese aviation ain’t all it seems .
No reason to be so condescending. I am happy to learn from others like yourself about how the aviation industry works especially in China. I sometimes I wonder why some folk feel the need to talk down to others so much on this forum? Please correct me where I need to be corrected but please can you try to be less patronising?
As you seem very clued up on Chinese aviation. What do you think Hainan's reason would be for possibly pulling their Edinburgh service in the future?