Core Viewpoint - The domestic civil aviation market in China is experiencing a slowdown in growth, characterized by declining ticket prices, leading to the phenomenon of "high passenger volume but low revenue" [1][8]. Industry Overview - The civil aviation industry is facing increased competition from high-speed rail, resulting in a shift in passenger demographics, with high-end travelers moving towards rail options [7][8]. - The China Air Transport Association has noted that the price levels of civil aviation and high-speed rail are converging, and the service levels are becoming more similar, prompting a structural change in passenger composition [7][8]. Company Strategies - China Eastern Airlines (CEA) is actively implementing new policies on the Beijing-Shanghai route, including a flexible free ticket change policy and in-flight Wi-Fi services to attract high-value business travelers [2][4][5]. - CEA has extended the free change window for tickets to four hours before the scheduled departure, allowing passengers to change to flights within a four-hour window without incurring fees [2][3]. - The introduction of online self-service channels for ticket changes via the CEA app is expected to enhance convenience for travelers [4]. Competitive Landscape - The Beijing-Shanghai route is considered the most commercially valuable in China, with CEA and Air China being the primary operators [5][6]. - Both airlines have previously collaborated on a voluntary transfer service for passengers, allowing for easier flight changes between the two carriers [5]. - The competition is intensifying as airlines seek to differentiate themselves through enhanced service offerings, such as reduced check-in times and improved in-flight experiences [9]. Market Dynamics - The overall ticket price levels in the aviation market are decreasing, with some routes offering prices lower than high-speed rail, indicating a shift in pricing strategies to attract more passengers [8][9]. - Despite the growth in passenger numbers, airlines are struggling with profitability, leading to calls for a shift away from excessive competition and towards retaining high-value customers [9].