From today, domestic airline ticket dealers will adopt a new ticket pricing mechanism, according to which ticket discount can be no more than 70 percent, the Beijing News reported.
On April 19, many air ticket dealers received notices from domestic airline companies about price adjustment. After the new pricing mechanism kicks in, the dealers can only get the ticket prices but not discount rates on the ticket selling system. The discount rates that passengers now obtain while purchasing is calculated by the dealers based on the full price of the tickets or the information provided by airline companies.
Since the end of last year, many domestic airlines have started using big discounts to boost sales in the sluggish market, which induced malicious competition.
Back in March, there have already been media reports saying that the Civil Aviation Administration of China (CAAC) will adopt the new pricing mechanism on April 20 and prices will be rising by 10-20 percent by then. However, the CAAC denied the news in a statement, which, ironically, is now still on its website.
Although the CAAC didn't order a straightforward ticket price hike, the prices for most economy class seats floated upwards under the new mechanism.
For more details, please read the Chinese full coverage at:
http://www.thebeijingnews.com/economy/2009/04-20/008@033455.htm
(China.org.cn April 20, 2009)
