Budget airlines will come to China

 |  About: China Southern Airlines Company Limited (ZNH)
by: Ezra Marbach

Mastercard International cites three reasons why China offers huge opportunities for low-cost airlines.

  • China has a large airspace
  • It has a massive domestic market
  • It allows easy connections with the rest of Asia

According to the report, about 70% of China's 780 domestic routes are
suitable for low-cost carriers, but the country's aviation industry has
yet to capitalize on its potential.

Of course, China also comes with its own set of problems including:

  • A lack of basic transport infrastructure
  • An overly regulated market.