The Civil Aviation Administration of China (CAAC) has refuted a Beijing newspaper report that appeared on Saturday, claiming that airfares would increase in line with rising costs for aviation fuel.

On Sunday, the New Express quoted an unidentified CAAC official as saying that there would be no increase in the price of domestic air tickets because "we have already ruled out any fuel-price related increase in our latest regulation published in April."

The regulation permits airlines to set fares in accordance with their own marketing strategies, but within a set range and from a base level established by CAAC.

"Any discount change within the limits is normal. Even if you bought a ticket at a 40 percent discount rate yesterday but bought another at 20 percent today, it doesn't mean the ticket price has increased," the official said.

The International Aviation Transport Association must approve price changes for international flights, so that hikes related to fuel price increases would not affect these airlines immediately.

Despite the rising cost of fuel, some airlines are offering unexpectedly high discount rates on selected routes, trying to lure more passengers after the peak summer holiday season. Air China, for example, has set its Beijing-Shanghai fare is at only 340 yuan (US$41), a 70 percent discount.

(Shenzhen Daily September 6, 2004)