News
CAAC relaxes domestic pricing rules
January 12th 2018
The Civil Aviation Administration of China (CAAC) and the National Development and Reform Commission (NDRC) have announced Chinese domestic carriers would be granted more control to set fares on domestic routes served by more than five airlines, with immediate effect. Read More »
The regulators said the move would allow fares to be determined by market forces, support China’s civil aviation development and increase competitiveness against a fast-expanding high-speed rail network. There will be no dramatic fare decreases. The regulators said any reductions to fares should not exceed 10%.
The shares of state-controlled Air China, China Eastern Airlines and China Southern Airlines all jumped more than 10% following the announcement. China Southern has the largest domestic network, followed by China Eastern and Air China.
