Are you willing to accept a more basic service in return for a cheaper air ticket?

This is the central topic of tomorrow's public hearing regarding Spring Airlines Co Ltd's proposal on budget air services.

The outcome will be passed on to the aviation industry watchdog, Civil Aviation Administration of China (CAAC), for a final verdict, according to today's Shanghai Morning Post. 

In this sense, tomorrow's hearing is vital to the Shanghai-based private carrier's take-off in the previously state-run aviation market.

If the proposal is approved at the hearing and finally accepted by CAAC, Spring Airlines' air service may be up to 20 percent cheaper than current services, providing it with a sharp competitive edge on its debut.

At the moment, the outcome of the hearing remains uncertain, according to a CAAC official quoted in the Shanghai Morning Post report.

"It may depend on the views of consumers at the hearing for the final decision," said Li Jingao, director with CAAC East China branch's market administration department.

He said eight consumer representatives as well as CAAC officials and industry representatives are invited to tomorrow's hearing.  "If the hearing approves the proposal, it is expected that CAAC will adopt its recommendations," he said.

But some proposals, such as for lower airport landing fees, are unlikely to be acceptable to CAAC, Li pointed out. 

It is unfair for the industry authority to charge different fees to the various airlines, he explained.

He advised private carriers to explore the advantages of their smaller size in order to control costs in other ways.

For example, they could use smaller airports at non-peak times to achieve lower fees and raise their efficiency by increasing their seat-occupancy rates, he noted.

Spring Airlines has become China's third private carrier after receiving the go-ahead from CAAC in April.

(Shanghai Daily June 28, 2005)