In China, airlines plug 'all you can fly' deals to pierce coronavirus clouds

Air Asia Co

28/07/2020 05:44

* Passes often priced about $500, most with some
restrictions
    * China Southern latest to join rush with 'Fly Happily'
package
    * China air travel closely watched for post-virus recovery
trends
    * Deals filling domestic flights, int'l rollout unlikely
-analyst

    BEIJING, July 28 (Reuters) - China Southern Airlines
 600029.SS   1055.HK  on Tuesday rolled out an 'all you can fly'
pass, becoming the latest in a fleet of cash-strapped carriers
to join a promotional craze that analysts say has helped revive
a coronavirus-ravaged air travel market. 
    At least eight of China's dozens of airlines have introduced
similar deals since June, often priced around $500 for in some
cases unlimited flights. Industry watchers say the packages have
been a shot in the arm, with costs offset by otherwise empty
seats being filled in a country where daily flights last month
recovered to 80% of pre-coronavirus levels.  urn:newsml:reuters.com:*:nL3N2EV1TG
    The global aviation industry is keenly eyeing China as a
pilot for air travel recovery trends, as the country reopened
its economy months earlier than other places after managing to
bring the pandemic mostly under control - at least for now.     
    But Luya You, transportation analyst at BOCOM International,
said these promotional packages - ranging from unrestricted
flights to an array of terms and conditions - can only stimulate
demand when coronavirus risks are already sufficiently reduced. 
    "While these packages may work in domestic markets, we do
not expect similar rollouts for outbound routes anytime soon,"
she said.
    The "Fly Happily" deal launched by China Southern, the
country's biggest carrier by passengers, allows buyers to use
passes for as many flights as they wish for destinations across
the country from Aug. 26 to Jan. 6 for 3,699 yuan ($529.03).
    As with other deals, passholders also pay a small tax to the
airline - about 50 yuan - per flight.  
    Meanwhile China Eastern Airlines'  600115.SS   0670.HK 
3,322 yuan "Fly as you wish" deal, launched in June, only
applies to weekend travel. Hainan Airlines'  600221.SS  2,699
yuan package is only valid on flights to or from Hainan
province.
    China Eastern has sold over 100,000 passes, state media
reported. That helped boost passenger loads on its domestic
routes to over 75% on recent weekends, according to aviation
data provider Variflight.
    "I'm going to Changsha this weekend and Guangzhou the next
weekend," said Elaine Shen, a Shanghai-based insurance
professional just back from an eight-day trip in the country's
northwest using the China Eastern pass. 
    "The experiences are great," Shen said. "I would not be
flying this much if it weren't for this pass."
    It's not just Chinese airlines that have jumped on the deals
bandwagon to revive the travel industry.
    The Marriott Group  MAR.O  said it was aiming for a fresh
promotional campaign in August 2020 in the wake of a successful
April deal giving buyers the chance to eat a month's worth of
buffet breakfasts in any of its 146 China hotels for 588 yuan. 
    
($1 = 6.9920 Chinese yuan)


 (Reporting by Stella Qiu, Sophie Yu and Brenda Goh; Editing by
Kenneth Maxwell)
 ((yifan.qiu@thomsonreuters.com; 86-10-66271289;))