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Airlines edged out by Wuhan-Nanjing trains
By Zhao Chunzhe (chinadaily.com.cn)
Updated: 2011-03-31 17:07
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The Civil Aviation Administration of China (CAAC) has decided to suspend all flights on the Wuhan to Nanjing route from March 27, due to fierce competition from high-speed trains, the Wuhan Evening News reported Thursday.
The bullet train, which has a speed of 250 kilometers per hour, makes the trip in three hours. The almost-full high-speed train runs that route three times a day and costs 180 yuan ($27) for second class seats. The full price of an air ticket is 730 yuan ($108), which means the airline is flying on deficits with half-empty shuttles.
Facing the fierce competition, the airline cut their prices as much as 80 percent, but the distance between the airport and downtown area still makes it less popular. For a while, only about 30 passengers were on board.
With the completion of the Nanjing South Station connecting to Beijing and Shanghai, the high-speed link between Wuhan and Nanjing will soon increase. The airline finally decided to drop the route.
Shuttle buses also face tough competition. A bus driver admitted that the number of passengers on the Wuhan-Nanjing route these days is zero. The bus company said its passengers have decreased 200,000 per year, resulting in a direct loss of 30 million yuan ($4.4 million).
The passengers can take advantage of the competition. They can choose how to travel with more flexibility. Flying can save time, while high-speed trains are punctual and long-distance buses more economical, the report said.