Customers gain as airlines free to set ticket prices
Print Edition
China will remove the lower limit on prices of air tickets as it encourages more domestic airlines to set up budget carriers, the Civil Aviation Administration of China said yesterday.
Previously, the prices of air tickets could not be cheaper than 45 percent of the average price on the same route.
“Now, domestic carriers can decide their ticket prices freely and cut prices for the benefit of passengers,” said Xia Xinghua, deputy director of the CAAC.
Xia said the CAAC will unveil more preferential policies on operational and management fees, standards and buying of aircraft to support major airlines to set up budget subsidiaries.
Speaking at a press conference in Shanghai yesterday to launch Spring Airlines’ Shanghai-Taipei route, its spokesman Zhang Wu’an said the new policy will definitely drive the development of budget carriers.
Spring Airlines, the only budget carrier on China’s mainland, offers tickets at 30-40 percent lower than the market average. For the new route, it offers discounted one-way ticket at 530 yuan (US$87) excluding taxes. Ten passengers on each flight can even buy the tickets at 299 yuan each, Zhang said.
China Eastern Airlines said it may form a low-cost carrier on the mainland if its joint venture budget airline, set up with Australia’s Qantas, is successful.
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