WorldspotterPL
Topic Author
Posts: 240
Joined: Thu May 27, 2004 2:40 am

Europe To NE-Asia Markets

Tue Jan 20, 2015 3:04 pm

Hi guys,

as I was doing some analysis I came across the Europe to NE-Asia markets. Looking at it from a European (hub carriers) perspective I started to wonder how this picture can be explained. There are many monopolies of different airlines and I wonder why they exist. For example:

- KL to Xiamen, Hangzhou, and Fukuoka
- LH to Shenyang, Nanjing, and Qingdao
- AF to Wuhan and Guangzhou
- BA to Chengdu
- AY to Chongqing
- also, there are quite a few monopolies by Chinese carriers from secondary cities into European hubs

http://i1039.photobucket.com/albums/a475/PaulLangfermann/ASIAeurospng_zps27b05f77.png
The map is January 2015 data from Innovata

I guess some of the reasons include:

- Economic relationships (eg. German car makers I think operate in Shenyang quite a lot)
- Alliance hubs (eg. Sky Team in Guangzhou, hence AF)

However, it still seems somewhat random to me. Do airlines simply try to find niches/monopolies where they are the only carrier with a one-stop from a European hub (neglecting possible one-stops via PEK or else)? Or is there a specific reason behind every one of these routes that I have no clue about?

Another things in particular that stroke me was
- Alitalia flying nowhere in China but to NRT from Rome, Milan, and Venice (is there such a large tourist market to Venice in the Winter months?

I'd be grateful for any insights you can give me.

Best,
Paul
 
User avatar
mercure1
Posts: 4468
Joined: Sun Jul 13, 2008 5:13 am

RE: Europe To NE-Asia Markets

Tue Jan 20, 2015 3:18 pm

Many of those secondary China markets are subsidized routes, so there simply is no commercial space for second carrier.

For example Air France to Wuhan was reported receiving EUR30,000 per flight., while BA CEO confirmed they received incentives subsidy monies to launch CTU.
mercure f-wtcc
 
TYCOON
Posts: 476
Joined: Sun Feb 18, 2007 8:20 pm

RE: Europe To NE-Asia Markets

Tue Jan 20, 2015 4:56 pm

AF's flights to Wuhan may be linked to the site of Renault's new factory there.
Regarding flights to Venice, there is a whole lot more than just tourism going into Venice as the Veneto region is one of Italy's wealthiest with a large number of healthy export oriented businesses based there.
 
FlyingHollander
Posts: 415
Joined: Sun Jul 31, 2011 3:50 pm

RE: Europe To NE-Asia Markets

Tue Jan 20, 2015 5:47 pm

Quoting WorldspotterPL (Thread starter):
- BA to Chengdu

KL serves CTU also.
If it ain't Dutch, it ain't much.
 
factsonly
Posts: 2700
Joined: Mon Aug 06, 2012 3:08 pm

RE: Europe To NE-Asia Markets

Tue Jan 20, 2015 6:43 pm

Serving smaller passenger/cargo markets via regional airports is a standard airline policy to avoid fighting for marketshare under intense competition at large airports.

At unique airports, airlines seek to make a profit on low demand at a higher yield, while avoiding EK, EY and the QR.

Quoting WorldspotterPL (Thread starter):
KL to Xiamen, Hangzhou, and Fukuoka

You can add KL to Chengdu, Taipei and Manilla
 
SCQ83
Posts: 5387
Joined: Wed Oct 03, 2012 8:32 pm

RE: Europe To NE-Asia Markets

Tue Jan 20, 2015 6:53 pm

Quoting factsonly (Reply 4):
At unique airports, airlines seek to make a profit on low demand at a higher yield, while avoiding EK, EY and the QR.

Some of those "regional" airports are served by the ME3 and TK (Guangzhou by all of them).
 
WorldspotterPL
Topic Author
Posts: 240
Joined: Thu May 27, 2004 2:40 am

RE: Europe To NE-Asia Markets

Tue Jan 20, 2015 8:39 pm

Interesting, thanks! About CTU, is KL maybe only flying there in Summer? Or is the data off FlightGlobal wrong?
 
migair54
Posts: 2401
Joined: Thu Jun 14, 2007 4:24 am

RE: Europe To NE-Asia Markets

Tue Jan 20, 2015 8:47 pm

I read somewhere that Xiamen is looking for a link to Europe and I think it will be KLM who will do it, obviously with a big regional help.

Quoting WorldspotterPL (Thread starter):

Small markets are saturated with 1 service so airlines avoid competing because they know that it most probably be useless even to try.

In the future we will see more "regional " Chinese airlines going long haul.

Quoting factsonly (Reply 4):
Serving smaller passenger/cargo markets via regional airports is a standard airline policy to avoid fighting for marketshare under intense competition at large airports.

TK masters that art... plus flying into some places that nobody else from Europe even considers.
 
factsonly
Posts: 2700
Joined: Mon Aug 06, 2012 3:08 pm

RE: Europe To NE-Asia Markets

Tue Jan 20, 2015 9:26 pm

Quoting migair54 (Reply 7):

I read somewhere that Xiamen is looking for a link to Europe and I think it will be KLM who will do it, obviously with a big regional help.

The answer is in post 1.
Quoting WorldspotterPL (Thread starter):
- KL to Xiamen, Hangzhou, and Fukuoka
Quoting WorldspotterPL (Reply 6):
Interesting, thanks! About CTU, is KL maybe only flying there in Summer? Or is the data off FlightGlobal wrong?


KL operates AMS-CTU with B744Combis 4x/week in Northern Summer and 3x/week in northern Winter.

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