The Beijing-based LCC said it will offer promotional airfares for as low as CNY8 ($1.30).
China Eastern CEO Ma Xulun said CUA’s airfares would be an average of 20% lower than that of traditional network carriers. It will also provide no-frills service, which means it would charge for inflight food, checked luggage and seat choice, according to a statement. In addition, it would not offer compensation for flight delays and cancellations.
In July 2014, CEA announced it had transformed China United Airlines into an LCC. It operates a single fleet of 31 Boeing 737 aircraft in an all-economy class configuration.
“Low-cost carriers’ growth has gained momentum around the world in recent years. Currently LCCs account for 26% of shares in terms of passenger boardings in global market on average and they even take up more than 40% shares of Europe’s market, which is much higher than a 7% share in China’s market. So there is big growth potential for China’s LCC market,” Ma said.
(Katie Cantle - ATWOnline News)
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