Source: Wall Street Journal               Date: August 17, 2011

A lack of confidence in the safety of China's rails has forced it to withdraw a portion of its services from its coveted Beijing-to-Shanghai high-speed rail, reported the Wall Street Journal. Only two months since the rail's opening, this announcement comes as a result of the accident outside Wenzhou in July.

Service will be scaled back from 66 trains per day to 88 beginning August 16. The trains' manufacturer also plans to delay the delivery of 17 additional trains worth USD 1 billion while it makes additional inspections on safety. Popularity had already been faltering due to high ticket prices and operating difficulties. In the wake of this disaster, airlines are benefiting, said analysts