CHINESE AIRLINES LOOK TO JV WITH THE RAIL COMPANIES

Following on from the interest expressed last month from Air France-KLM in several European rail companies Chinese airlines have now indicated a willingness to work with their national railway operators as a way to hedge against the high speed easy access trains of the future. China’s rapidly expanding high-speed rail network will eventually cover 60% of the market currently held domestic airlines. When the Chinese rail companies take delivery of new high speed stock it will force local airlines to make decisions, they will be forced to simplify the check in process and take the risks, purchase new regional aircraft