China’s high-speed rail is so popular, it’s hurting the domestic airline industry

[marmar]

China Southern Airlines is the latest Chinese airline to post miserable year-end 2013 results. Net profit dropped 24% to 1.99 billion yuan ($321 million), and operating profit fell 70%. China Southern Airlines joins Air China, where net profit dropped 32% in 2013, and China Eastern Airlines, where it fell by 25%.

High oil prices, as well as increased competition from low-cost carriers and each other, have taken a toll. But, as each airline has recently acknowledged, so has China’s massive and growing high-speed rail system.

As Quartz reported last August, the costly and sometimes under-used rail network was shaping up to be a vital part of China’s growth strategy. It doesn’t have the hurdles of the airline industry: Airlines in China struggle to get clearances from the military to expand flight paths, and China’s major airports have earned the title of the most-delayed in the world, where passengers sometimes riot to protest long waits and miserable customer service. .................(more)

The complete piece is at: http://qz.com/193556/chinas-high-speed-rail-is-so-popular-its-hurting-the-domestic-airline-industry/

[dballance]

1. I can only dream of such a thing here in the US. /nt

[geomon666]

2. It would be so great. n/t

[KurtNYC]

3. Airlines are in bad shape everywhere

Airlines are perpetually broke in the US and it isn't due to any rail competition. The least fuel efficient way of moving ANYTHING.

We should be building out OUR rail capacity before the coming spike in fossil fuel prices.

[JDPriestly]

4. Agreed. I travel Amtrak when possible and love it.

But it's too slow for cross-country.

[IronLionZion]

5. Amtrak is a viable force in the northeast

I have colleagues who often take it between DC and Boston. Its not as fast in other less densely populated corridors.

[marions ghost]

6. Lucky China

we need all the ground mass transit we can get.

But we're not allowed to have it.