1. The development of high-speed rail and the transformation of the aviation industry
Over the past two decades, the mainland's high-speed rail network has developed rapidly, forming a huge system covering the whole country. This process is undoubtedly a major challenge and reshuffle for many industries. Among them, the most far-reaching impact is probably the aviation industry.
In the process of large-scale rollout of high-speed rail, many lines that originally relied on air passenger transportation were gradually replaced. The most typical example is the decline of air routes within Yunnan Province. With the layout of high-speed rail in the local area, the originally busy regional routes were unsustainable and were eventually forced to suspend sailings.
This shock is not an isolated case, but a universal rule. Generally speaking, as long as the high-speed rail between the two places is controlled within 3 hours, it is difficult for the aviation industry to gain a foothold on this route. Because as a choice for people to travel, high-speed rail is often more convenient, faster, and relatively more affordable. In contrast, the advantages of the aviation industry are less prominent.
It can be said that the rapid development of high-speed rail has objectively accelerated the transformation of the aviation industry. Some routes have had to be shut down, and airlines have had to adjust their business strategies to shift their focus from short- to medium-haul to long-haul routes.
2. The Chongqing-Kunming high-speed railway is about to open
Entering 2025, a new high-speed rail line will soon be put into operation in the southwest region - the Chongqing-Kunming high-speed railway. The opening of this line is bound to have a huge impact on the three major local airports.
The Chongqing-Kunming high-speed railway actually consists of two high-speed railways: the Chongqing-Kunming high-speed railway and the Chengdu-Kunming high-speed railway. The former connects Chongqing and Kunming, and the latter connects Chengdu and Kunming. At that time, the high-speed rail time between Chengdu and Chongqing and Kunming will be greatly shortened, and it is expected to take only about 2.5 hours.
According to the experience of the opening of high-speed railways in the past, this means that the air line between Chengdu and Chongqing and Kunming is likely to face the fate of a complete shutdown.
Because for ordinary passengers, if they can reach their destination within 2.5 hours by high-speed rail, then choosing another plane will undoubtedly lose its advantage. After all, in today's air travel process, the whole process from arriving at the airport to boarding and then arriving at the destination airport often takes 3-4 hours. In this way, high-speed rail, with its advantages in speed and time cost, will undoubtedly greatly squeeze the living space of the aviation industry on this route.
This is not an isolated case. It can be seen from the competition between high-speed rail and aviation in the past that as long as the high-speed rail time is less than 3 hours, it is difficult for aviation lines to exist anymore. Therefore, after the opening of the Chongqing-Kunming high-speed railway, the three major airports of Kunming, Chongqing and Chengdu may face huge passenger flow shrinkage and revenue compression.
Third, where is the aviation industry going?
Obviously, the rapid development of high-speed rail will have a profound impact on the aviation industry in southwest China. Kunming Airport, one of China's three major hub airports, and Chongqing and Chengdu, two regional hubs, are likely to be hit the hardest.
On the one hand, the original large number of passengers at these major airports will be absorbed by high-speed rail. Most passengers travelling from Chengdu and Chongqing to Kunming will choose the more convenient and faster high-speed rail to travel, and without these passenger sources, the passenger flow at the airport will inevitably be greatly reduced.
On the other hand, the airport's revenue will also shrink significantly. The main source of revenue for airport companies is the various expenses of airlines, including take-off and landing fees, parking fees, etc. However, if all of these routes are suspended, then this part of the revenue will also be at risk of a significant decline.
It is foreseeable that under the impact of the Chongqing-Kunming high-speed railway, these three airports will experience a severe test. Their development prospects will also be overshadowed by this.
So, how should the aviation industry respond and transform in this situation?
First, airlines must rethink their business portfolio. Some short- and medium-haul routes, if faced with strong competition from high-speed rail, are likely to be unsustainable in the end. Instead, airlines should focus on medium- and long-haul routes that are difficult to replace by high-speed rail, such as international routes and regional trunk routes.
This can not only ensure the profitability of the main business, but also lay the foundation for the sustainable development of the enterprise in the future. After all, in the era of high-speed rail, airlines must actively adjust their positioning and develop towards a more high-end business.
Second, airlines should also focus on improving service quality and customer experience. Although it is difficult to compete with high-speed rail in terms of time cost, if it can bring passengers a better experience in terms of comfort, meals, entertainment, etc., then there is still a chance to attract some passengers to choose to travel by air.
At the same time, airlines should also increase their marketing efforts and actively develop passenger sources through differentiated positioning and precision marketing. For example, we can launch better products for business customers, or design more distinctive routes for tourism customers. Only by actively adapting to market changes can airlines remain invincible in the fierce competition.
Thirdly, the relevant regulatory authorities should also give appropriate policy support to the aviation industry. For example, preferential policies are provided in terms of airport construction and tax exemption to help airlines tide over difficulties. At the same time, airlines should also be encouraged to accelerate their own transformation and upgrading to enhance their core competitiveness.
Only when the government, enterprises, passengers and other parties work together can the aviation industry find new development space under the impact of high-speed rail and achieve a breakthrough in transformation.
IV. Conclusion
In general, the opening of the Chongqing-Kunming high-speed railway will undoubtedly have a huge impact on the three major airports in the southwest region. Passenger traffic and revenues that have relied on these intercity routes are at risk of shrinking significantly.
But we must also see that in the context of the high-speed rail era, the aviation industry is not without a way out. As long as they have the courage to adjust their positioning and actively adapt to market changes, airlines still have the opportunity to find new development space in the fierce competition.
At the same time, the relevant government departments should also provide necessary policy support for the transformation and development of the aviation industry to help enterprises tide over the difficulties. Only by working together can the aviation industry explore a new development path under the impact of high-speed rail.