Cheap international airlines competition in the Chinese market

This is a big step for us because we see Beijing as the biggest economic center for global aviation; I think it's just a matter of time before Beijing will be (one of) the world's largest airports.”

That was Azran Osman-Rani, CEO of a leading Malaysian low-cost airline, AirAsia. Speaking at a recent launch ceremony for the direct route between Beijing and Kuala Lumpur, Osman-Rani says he has been expecting this day for long. He believes his company will profit from the new route.

"I think there is a lot of room to expand. The market we are looking at is the Asia Pacific, 3 billion people. Europe has only about five-hundred million people and there are at least 10 low cost carriers that are big and successful with more than a hundred planes. And Asia, we haven't even reached that yet. So the growth potential is big. "
It's not just Malaysia's AirAsia eyeing China's low cost aviation market. Australian low-budget airline Jetstar Airways launched non-stop flights between Beijing and Melbourne at the end of last year. Singapore Airlines' new low-cost carrier Scoot will soon make its first foray into China in August, with its Chinese name "Ku Hang".

According to figures from the International Air Transport Aviation Association, low budget airlines makes up about 25 percent of the market share globally, but in China, it is only 5 percent.

Shanghai-based Spring Airlines is one of the few low budget airlines in China, which is gearing up to cope with the fierce competition from foreign inroads.
This captain from Spring Airlines explains why his plane can manage low fares:

"We only offer 15 kilograms of luggage for free. Passengers will have to pay for over-weight bags. Flights usually carry 20 kilogram for free. Also, we don't offer free meals, beverages or entertainment. These are all on-demand services."

Despite the fewer services, it seems that more and more budget-conscious tourists are willing to surrender some comfort in return for lower fares.