Beijing-Shanghai airfares slump as high-speed rail service commences

The Beijing-Shanghai high-speed railway commenced operations on 30-Jun-2011 and the impact on economy airfares and hence yields on the route have been immediate and significant, with a slump in economy fares of 52% coinciding with the rail launch. However, fares in the higher-yielding and less price sensitive business and first-class markets appear to have remained relatively unaffected.