Chinese Airline Offers Flights For $.13, Gets Smacked Down By Government

Tuesday, December 19. 2006

Chinese Airline Offers Flights For $.13, Gets Smacked Down By Government

Here's why low cost airlines in China are not going to be viable any time soon:

A new Chinese budget airline that sold tickets for as little as 13 U.S. cents has been fined for violating government price controls, a news report said Monday.

A Spring Airlines subsidiary was fined $20,000 for violating rules that limit discounts on government-set ticket prices, the official Xinhua News Agency said.

Spring's Jinan Spring Holiday Travel Agency sold 400 tickets on flights between Shanghai and the eastern city of Jinan for 1 yuan (13 US cents), the report said. They accounted for 10% of seats on Spring's flights from Nov. 30 to Dec. 10.

A regular one-way ticket on that route costs 910 yuan (US$116), including taxes.

Chinese airlines are barred from offering discounts of more than 45% on the government-set price, said an official of the Jinan Price Bureau, who would give only his surname, Tang.

Via Associated Press.

Posted by Mobissimo in Airline Industry at 12:17 | Comments (0) | Trackbacks (0)

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