China scrapped a rule that requires local airlines to keep a price floor for domestic tickets. The move comes in a bid to boost air travel demand within China. The Civil Aviation Administration says it will also consider adding a budget airline terminal to a planned second airport in the southern outskirts of Beijing.
Many Chinese airlines are feeling the pinch due to fiercer competition from cheaper high speed train tickets that have dampened air travel demand in the world’s most-populous market. Chinese Mainland airlines previously had to set fares not higher than 1.25 times and not lower than 60 percent of a base price.
Source: CCTV
