China's flood of cheap airfares deals blow to global carriers
Tuesday, December 13, 2016 - 07:18
[SYDNEY] Killing four empty hours at Guangzhou airport waiting for a China Southern connection to Sydney may not be everyone's idea of fun. For Gina Capella, it was a no-brainer.
The 43-year-old Boston resident and her friend saved hundreds of dollars last year choosing China Southern Airlines Co over a direct flight from Seoul with Korean Air Lines Co or Asiana Airlines Inc.
"We didn't mind the layover because it was so much cheaper," she said. "Like, almost half the price."
Chinese airlines are flooding the world with some of the lowest long-haul fares ever seen - and delivering a hammer blow to foreign carriers trying to keep up. From Delta Air Lines Inc and American Airlines Group Inc in the US, to Cathay Pacific Airways Ltd and Korean Air, many operators are feeling the squeeze from the extended reach of mainland Chinese carriers.
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