Cheap fares lure Kangaroo Route fliers to China
Cheapest way to fly to Europe from Australia is via Guangzhou, amid heavy Chinese discounting
Travellers plying the Kangaroo Route between Australia and Europe have discovered the cheapest path goes through Guangzhou.
China's three biggest carriers, including Air China and China Eastern Airlines, have tripled flights from Oceania to Europe over the past five years, while upgrading services. The route will provide experience needed for further expansion into North America and Europe as annual spending by Chinese tourists exceeds US$100 billion. Qantas is fighting back with discounted fares to Asia.
"The sheer volumes of travellers mean that eventually China can be the most powerful transit country in the region, probably the world," said Peter Harbison, executive chairman of CAPA Centre for Aviation. "They will be able to price very, very competitively."
Revenue passenger kilometres, a measure of traffic, has declined for 10 months at Qantas and five at Cathay Pacific Airways on reduced capacity between Europe and Oceania, according to data.
Cathay and Singapore Airlines stand to lose from the Chinese carriers' growth, said K Ajith, an aviation analyst at UOB Kay Hian.
Transit passengers make up about 30 per cent of traffic at Singapore's Changi Airport, said spokesman Ivan Tan.
The lowest price for a non-Chinese airline, on Malaysian Airline System, was 19 per cent more expensive at A$1,721. Emirates tickets started at A$1,896 while Singapore Air's was at A$1,940.
The cheapest Qantas ticket was 51 per cent more than China Southern, at A$2,180.
Air China and China Eastern put an inch more leg room than Qantas in economy class while China Southern leased one of Sydney Airport's most expensive billboards for three years and put massage chairs in first-class cabins.
