President Xi Jinping and his wife Peng Liyuan greet dignitaries before boarding an Air China plane at Manchester airport at the end of their state visit to Britain on Oct. 23, 2015, in England. (Photo : Getty Images)
In order for another high leap towards achieving more market, world's second-largest aviation industry: the Shanghai-based China Eastern Airlines laid the foundation of their southern branch in Guangzhou, capital of south China's Guangdong province, on Sunday.
All three State-owned airlines are now competing against each other in three main cities, Beijing, Shanghai and Guangzhou out of their original bases.
Earlier, Air China, based in Beijing, marched into South China's market with the help of Shenzhen Airlines.
China Eastern and Guangzhou-based China Southern Airlines both set up branches in Beijing, and Air China and China Southern both have branches in Shanghai.
According to the Global Times, the moves suggest that the companies are becoming more money oriented rather than quality-oriented. The head of the Civil Aviation Administration of China revealed that he hopes that the three airlines would stay in their respective bases and build their hubs in their territories.
However, winning more flight slots seems to be the priority. China Aviation Daily reported that China Southern announced in June that its Airbus A380 jumbo brought in profit to the company after so many years because it's more suitable for bigger flights such as those starting in Beijing, but it was also observed that there's a lot of competition in wining those flights.
21st Century Herald provided the information that China Southern has a more prominent market share in Guangdong than China Eastern which enjoys a share of 11 percent. On the other hand, China Eastern now treats six cities in Guangdong Province by holding 120 flights daily including flights to three cities overseas.
It also plans to open 60 more airlines by 2020 which would cater to international flights as well, from Guangzhou to Australia and America. In the coming times they may break through the second-largest label to the world largest.
