Spring Airlines: China's Low-cost Airline
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The Recipe for Low Fares
Low-Cost - The Formula for Success
Experts opined that Spring had proven the effectiveness of its low-cost business model in the domestic market to potential investors, patrons, and skeptics by posting a profit during the turbulent times in the aviation industry...
Industry observers opined that the competition was expected to intensify for Spring since LCCs from Thailand and Korea were planning to launch international flights to cities in China at higher discounts...
The Road Ahead
While most of the airlines continued to post losses, Spring set a new record by posting earnings of 15.87 million RMB on sales of 429 million RMB for the first quarter ended March 31, 2009. In view of its positive results, the carrier had aggressive plans to double the net profit to 40 million RMB (US$ 5.9 million) by the end of 2009...
Exhibit I: A Note on the Chinese Aviation Market
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