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Foreign airlines boost coverage in western areas (2)

By Wang Wen  (China Daily)

08:45, December 21, 2012

BA is not the first foreign airline eyeing China's western regions. The airline's planned route will be the second in Chengdu linking China and Europe. Air France-KLM Group has run its Chengdu-Amsterdam route since 2006.

And at the end of 2011, Etihad Airways introduced a Chengdu-Abu Dhabi route.

"Chengdu is expected to have four routes to Europe and the Middle East next year respectively," said Chen Zhongwei, director of the Chengdu Logistics Office.

Doha, Melbourne and Frankfurt will be the next foreign cities to become connected to Chengdu, Chen said.

Other cities in western China are also welcoming additional international routes from foreign airlines.

Qatar Airways Co selected Chongqing as its fifth Chinese destination in November 2011, while Finnair Oyj added Chongqing to its network in May 2012.

"Overall, the numbers of international flights and routes in these regions are not very large now," said Li Lei, an aviation analyst at Citic Securities Co Ltd.

The market in western areas is still in a preliminary stage, Li said, and the airlines are not investing too much in air capacity there. "They are occupying positions through new routes and waiting for a boom in the market," Li added.

However, some business insiders question whether foreign airlines are too centralized in southwest cities, which could make competition stiffer there.

Meanwhile, local governments are working hard to lure foreign carriers by introducing supportive policies, including direct subsidies to airlines.

"Local governments will help the airlines open new international routes to Chengdu as soon as possible," said Cheng at the Chengdu Logistics Office.

Local airports have also expanded their capacity to accommodate more carriers.

Chengdu also plans to build a new airport in Jianyang, a city nearby, said Yan Yuhua, manager of the aviation market department of the Chengdu Shuangliu International Airport.

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