In the past week, the WSJ has had articles (here and here) on the emergence of new airline routes to China. The first is airline, Qantas, is a global airline that is trying to cater to business travelers all over the world. The airline industry has slowly reacted to the emergence of a strong Chinese economy. In the competitive markets of the US and Continental Europe, the airlines see relatively little room for growth. China, however, has given them a new opportunity for expansion. The increasing Chinese middle class now demands more transportation as well as international business men going to and from China.
In addition to Qantas, SpiceJet a budget Indian airline is beginning more service between India and China. While China and India have disputed in the past, the businessmen of each respective country understand prospective gains by strengthening the ties between the two countries. Due to these poor relations very little transportation has been set up to connect the two countries. SpiceJet intends to take advantage of the relative lack of competition. It’s interesting how China is opening up not only for business, but for tourism and deep seeded conflicts have been minimized in order for the economy to prosper.