China Southern Airlines is exploring low-cost aviation development with LCC Spring Airlines, to decide which company is suitable for developing a new LCC model in China.
According to Civil Aviation Resource Net of China (CARNOC), China Southern vice chairman Ma Xulun said the airline is now in consultation with local provincial governments, especially in areas with a large population base and little access to the high-speed rail network. LCCs represent only around 9.7% of domestic capacity in China.
Spring Airlines is willing to explore the cooperation with China Southern on the development of LCC model.
The privately owned LCC was China’s most profitable airline in the last fiscal year, and in September 2018 announced it will invest CNY846 million ($123 million) to acquire 1.63% of the state-owned China Southern A-shares.
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