China Eastern signs agreement with Shanghai Railway Bureau, Hainan Airlines with Yuehai Railway

2012-06-01 10:41:32
Summary:China Eastern Airlines and Shanghai Railway Bureau commenced operations of air-rail combined services on 05-May-2012 from Shanghai Hongqiao International Airport, marking China’s first air-rail combined service.
China Eastern Airlines and Shanghai Railway Bureau commenced operations of air-rail combined services on 05-May-2012 from Shanghai Hongqiao International Airport, marking China’s first air-rail combined service. The service allows passengers to transfer between domestic or international services and train operations with a single ticket.
The air-railway combination among four cities (Suzhou, Wuxi, Changzhou and Ningbo) and two airports (Shanghai Hongqiao Airport and Shanghai Pudong Airport) will be realised first while links from China Eastern's flights in three provinces and one city (Anhui, Jiangsu, Zhejiang Provinces and Shanghai) under the Shanghai Railway Bureau will be "gradually realised". "The joint ticket price is about half of the total cost of a flight and railway tickets," China Eastern Airlines senior manager marketing Zhang Chi said.
The Shanghai Railway Bureau operates 22 routes per day between Shanghai and the four neighbouring cities to link with around 900 daily China Eastern flights. China Eastern said more railway routes linking Shanghai's neighbouring provinces of Jiangsu, Zhejiang and Anhui will be added to the joint service soon, which will result in reduced dwell times for passengers.
Hainan Airlines launched a programme with Yuehai Railway Co, which runs the high-speed rail between Haikou and Sanya in Hainan province. Passengers can buy high-speed rail tickets from Haikou to Sanya when booking tickets on any Hainan Airlines flight to Haikou. The airline will eventually sell tickets to other stops on the high-speed rail route. The rail fares will be the same as those offered directly by railways.
Hainan Airlines deputy GM and sales Yuan Huifang said joint ticketing can help both sides get more passengers. It is a way for airlines to profit from the HSR system, which has had a negative impact on airline bottom-lines. "High-speed rail services heavily affect the business of flights of less than 500km. But we want to find a way to cooperate with rail systems,” he said.
Hainan Airlines manager for product development Wang Yue however noted the process is not without its challenges, especially given the infancy of the system. Hainan Airlines took almost one year to prepare for the programme, with the two parties facing challenges in combining two different ticketing systems. Challenges have also been faced in linking up transfers. For that reason, Hainan Airlines will promote the programme more heavily in international destinations rather than adding more domestic cities, Ms Wang said. However, she noted that new airport development is increasing focused on inter-modal connectivity. "I believe more railway stations and airports will be built together for joint operations," he added.

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