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Airline companies are expected to offer the airfares at a maximum fluctuation rate of 40 percent soon, the plan is awaiting approval from the Civil Aviation Administration of China (CAAC), eastday.com reported yesterday.
According to the plan, the airline companies of the nation can sell their air tickets at an upper-limit of 140 percent of the original price and the maximum discount will reach 40 percent.
According to the CAAC, domestic airline companies could previously offer a maximum discount of 30 percent, but most of them offered much larger discounts to claim more of the market.
Many airline companies have jointly signed agreements to set the maximum discounts they can offer, but fewer companies stick to it, said a spokesman for the Xinhua Airlines.
The air-ticket market is in a situation that the aviation watchdog cannot control, while air-ticket pricing hasn't been fully open to the market, said an industry analyst.
The CAAC plans to allow the market to decide the airfares in one year, the analyst said.
(eastday.com November 13, 2002)
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