High-speed railway poses threat to airline

Emerging competition from high-speed trains poses a threat to China's airline industry. About a quarter of 160 airline routes are involved.

According to the medium and long term development plan by the ministry of railways, a huge rail-network will cover a total distance of 160 thousand kilometers. About three-quarters of that plan will be in effect by 2012.

The fast developing railways pose a threat to airlines as the network will invest heavily in the mid-east area where airlines have a weaker presence. When it comes to short distance shuttles, airlines are usually a distant second option compared to railways. For example, the Shanghai-Zhengzhou air-shuttle was cancelled after a lengthy competition between the China Railway and Spring Airline.