IAG in talks with Chinese Airlines To Tap Into Spectacular Passenger Growth

IAG in talks with Chinese Airlines To Tap Into Spectacular Passenger Growth

British Airways parent company has held talks with a number of China's biggest Airlines over a potential partnership to tap into the country’s expanding domestic Aviation market.

Willie Walsh, the head of International Airlines Group (IAG), revealed the discussions as he warned that Britain is still losing out on critical trade and tourism with the world’s second biggest economy due to its visa regime for Chinese visitors, despite efforts by the Home Office to improve the system.
Mr Walsh said IAG has held talks with all three of the biggest Chinese carriers - China Southern, China Eastern and Air China - about a potential codeshare agreement that would allow British Airways passengers to access cities to which the UK carrier doesn’t currently fly itself. 

Codeshare agreements allow passengers from one Airline to fly or transfer to another carrier’s routes without having to buy a separate ticket. They have long been a popular way of offering additional destinations to customers, without Airlines having to serve those cities themselves.
British Airways currently flies to three destinations in China - Beijing, Shanghai and Chengdu - but a codeshare agreement with one of the fast-growing Chinese carriers would significantly enhance its reach.
According to a report last year from aviation research firm CAPA, China’s big three airlines have recorded “spectacular” growth over the past decade. China Southern increased traffic from 20bn revenue passenger kilometres – a key measure of expansion in the aviation industry calculated by multiplying the number of revenue paying passengers by the distance traveled to almost 140bn in 2012. The growth has been both international and domestic  in 2012 domestic passenger traffic accounted for 79pc of China Southern’s total.

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Mohini Porwal [ B Sc]
Trainee Aviation  News Editor