China Southern Airlines to rename first class as business class

The government of China is currently waging a crusade against corruption and ushering in an age of austerity, particularly for the government officials. In a recent move the government has banned the public officials, who have become accustomed to flaunting luxurious lifestyle, from undertaking air travel in the first class cabins.

The state-owned carriers sensing the loss of business have now devised a new strategy altogether. One such state-owned airline China Southern Airlines has recently announced that it will be changing the name of its first class cabin to business class now. The new change will be effective from October 26, 2014.

China Southern Airlines however said that the passengers booking flights on the renamed business class will continue to be offered the same service being provided to first class customers. The renamed business class will be offered on narrow-body jets operated on domestic routes.

The airline has indicated that the name change is taking place to fulfill the market demand. According to China Southern Airlines, some of the customers might just have to pay the same price for the new business class which was being earlier charged for the old first class. The airline also said that other fares are likely to fall.

Media reports said that the commercial aviation industry in China has already started to be adversely impacted by the government’s austerity drive. The harsh measures have resulted in a sharp decline in high-end ticket purchases, which had otherwise been profitable so far.

China Southern Airlines had in August this year sounded out that the profits for H1 results would be severely impacted because of the slower growth of Chinese economy. Another state-owned carrier China Eastern Airlines also said that it had lost one million premium customers in 2013. Even, China’s national carrier Air China had said that its net profits will see a sharp decline for H1.