Service Innovation in the Chinese Aviation Industry: The Case of Chinese Low Cost Carriers

Encouraged by the deregulation process in the Chinese aviation industry, three Chinese airlines have changed traditional air travel services in China by following the operation principles of western LCCs. Spring Airlines offers no frills, low fare travel with high quality; Shenzhen Airlines provides a high standard of service at a reasonable price while China United Airlines supplies simple, low fare and flexible air travel. Based on their innovative service activities, the three airlines have achieved considerable competitive advantage in the Chinese aviation industry.