Eastern Airlines says first class pricing liberalisation policy has long-term impact on the front

Yesterday, according to the China Civil Aviation Authority, the National Development and Reform Commission issued a joint "on civil aviation domestic routes first class, business class fare reform related issues notice", domestic airlines first class, business class fares open, the airlines to implement independent pricing.　　Southern Airlines director of the Office of the Secretary to the Securities daily, said the new pricing mechanism has just begun to implement, how the relevant business units to implement the first class, business class market pricing has no specific feedback, what will be the impact on the listed companies and related business departments to further communicate. There is an analysis of the industry, because the airline first class, business class generally there is not high attendance, the current two cabin national average guest rate of about 30% to 40%, of which round-trip between Beijing, Shanghai, Sui, deep, Rong between the two cabin guest rate is higher.　　Open with the price release, more ordinary consumers may have the opportunity to enjoy first class, business class discount tickets, for stimulating ordinary consumers "consumption upgrade" is undoubtedly a big positive.　　Other analysts pointed out that "two cabin" pricing liberalisation and the April reduction in fuel costs for the aviation industry are positive for consumers, at the same time, the implementation of more flexible pricing mechanism for the aviation industry listed companies can also be based on market demand to adjust fares, to improve the utilization of resources, to achieve the maximization of airline benefits. " For airlines and consumers is double good win the marketing advisory Body Mu Feng to the securities Daily Reporter pointed out, "two cabin" pricing liberalization for airlines and consumers is a good news.　　For airlines, pricing will be more flexible, as long as the balance of market changes and consumer preferences, "two cabin" than before the income will be greater; In addition, as the market competition intensifies, the airlines will be more services and lines of more attention to customer ride experience, which will enhance its brand competitiveness. For consumers, Mu Feng that "two cabins" would be chosen at a more reasonable price. It is clear that in regional lines and off-season, consumers can buy tickets at a lower price than they originally did. But in Beijing, Shanghai, Guangzhou and other popular lines and holidays, "two cabin" price may be higher than before, but at this time you are not its customers, you can choose more economic space.　　While enriching the service content and improving the service level, it will attract more potential consumer groups, which is the benefit of marketization.　　Li Sherong, a research fellow in the trade of investment advisers, also told the securities daily that the airline industry to release the business class and first class pricing in fact for the listed companies to promote the profitability of the promotion can play a role in the liberalization of pricing means that the integration with the market will be more closely, more reflect the changes in market demand, so as to improve the operating conditions of airlines. Li Sherong pointed out that under normal circumstances, China's airlines cabin guest rate is generally not high, only about 30%, especially during the financial crisis, domestic airlines first class and business class guest rate is even about 10%. For the off-season, the airline will be able to make more discounts for both cabins, attracting a certain percentage of business travellers.For the peak season, in order to attract more service-focused high-end consumer groups, some first-class cabin can be improved to provide customers with upgraded services, the price will naturally rise.　　China Merchants Securities Research Report also believes that the "two cabin" after the implementation of independent pricing, on the one hand, airlines can achieve differentiated services and pricing to gain greater autonomy; On the other hand, price fluctuation can realize the maximization of two-cabin revenue. Classification pricing is the reform trend in fact, at present, the foreign major aviation developed countries domestic civil aviation passenger transport has basically implemented market adjustment prices, allowing air transport enterprises in accordance with market supply and demand and marketing needs, independent pricing, to the government to declare or record the implementation. But at the same time, Li Sherong also pointed out that the national government agencies still retain specialized agencies, in accordance with the legal authority, the civil aviation tariffs and air transport market to implement the necessary supervision. The purpose of the regulation is to prevent the high fares from damaging the interests of consumers, or excessive competition to damage the interests of the industry, causing the civil aviation industry to shrink. The key points of supervision include the key routes between the key cities in China and other major transportation lines, the airlines ' exclusive routes, the unfair price competition behavior of airlines, and the airlines ' non-performance of Price declaration and filing procedures.　　The unreasonable price behavior of the airline will be interfered and punished by the government supervision Department according to law, and the specific measures are: warning (to correct unreasonable tariff), stopping flight right, fine, canceling the Operation qualification (closing the airline), etc. Li Sherong that the domestic aviation enterprises, in fact, should further relax price control, so that the price formation mechanism more market-oriented, which is also the direction of China's air passenger transport pricing mechanism reform.　　At the same time, in the implementation of this pricing mechanism reform, aviation enterprises also need to be in the management system and market control, such as supporting the reform. In addition, to ensure a higher quality of service is a typical carrier of the survival of the service enterprises, but also the enterprise to achieve sustained rapid and coordinated healthy development of an important guarantee. Without satisfactory service, there will not be a steady flow of customers, and the competitiveness of airlines will not be improved.　　Therefore, the industry is widely believed that the aviation industry to open up business class and first class pricing will help improve the quality of the airline service, thereby establishing a better brand image. To Orient Airlines as an example, as a result of the benefit of the Shanghai World Expo, according to the survey, May 21 on the day of the Beijing-Shanghai route of the first class average guest rate as high as 98%, business class reached 81%. China Merchants Securities Research pointed out that the East Airlines Shanghai and the main cities between the routes often difficult to find a ticket, two cabin guest rate of 80% to 90%.　　and two cabin open influence, Eastern Airlines judgment and investment securities earlier report the same opinion basically, that is, short-term no impact, and long-term more positive. Moreover, Li Sherong pointed out that, for different periods, flexible pricing mechanism for airlines from the external market characteristics and the airline's own situation to establish the basic positioning of the airline market: for public business travellers high-end, midrange quality service product portfolio, to provide more value-added extension services; for tour groupsTeam's choice of services, taking into account the relatively fragmented, price sensitive to the general needs of the bulk of the service. To implement differential pricing for different target customers and to form a multi-level service system with high to low levels.