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China's new high-speed rail connecting Beijing to Shanghai is set to open this Thursday. But this has many of China's airlines worried about losing customers to their new competitor.
China's new high-speed rail will be able to connect Beijing to Shanghai -- that's a distance of over 900 miles, in only five hours. But this has many Chinese airlines slashing ticket prices in an effort to combat the new competitor.
The rail line goes into operation this Thursday, June 30th. It has been dubbed "Harmony" and can travel at speeds reaching up to 186 miles per hour. But the train is causing anything but harmony, as airlines scramble to keep up.
A Ctrip search for airlines prices from Shanghai to Beijing show ticket prices dropping by almost 400 RMB, that's nearly 70 US dollars, ahead of the opening of the railway.
On top of that, critics say that even the lowest price for a train ticket, 555RMB, or about $85, is well out of the price range of most Chinese citizens. Not to mention the first class tickets that run for almost 2000 RMB.
A flight from Beijing to Shanghai takes about three hours, but even still, with no drive to the airport, no hassle with airline security, and a bit more legroom, who needs to fly? And that is exactly what many of China's airlines are worried about.
