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March 12, 2013

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Frugality hits air ticket sales

SALES of first and business class flights have dropped as China's frugality campaign gathers pace beyond high-end dining, according to the country's civil aviation authorities.

Since December, the number of business and first class travelers fell by about 10 percent compared to the same period a year ago, the Beijing Times quoted Li Jun, deputy head of Civil Aviation Administration of China, as saying yesterday.

The VIP lounges at the airport also received about 20 percent fewer passengers year on year.

In December, the Central Committee of the Communist Party of China promulgated a package of rules calling for officials to be more frugal.

On the other hand, the number of passengers traveling economy class rose substantially.

During the Spring Festival holiday in February, the number of passengers buying ordinary class tickets rose a whopping 18 percent year on year to 6.42 million, according to data made available by the Ministry of Transport.

Also, upscale restaurants in first-tier cities like Beijing and Shanghai saw their revenues drop by 35 percent and 20 percent, respectively, year on year in January.

Fewer expensive dishes were sold during the week-long Spring Festival holiday, the Ministry of Commerce said.

Li suggested that to boost tourism further the country's system of paid vacation should be improved while calling for lower taxation on restaurants and hotels that serve ordinary people.

The civil aviation official also called for relaxation on airfares to allow for cheaper flights.



 

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