Goodbye, cheap flights in China?

Business & Technology

Deregulation of ticket prices for state-owned Chinese airlines will probably lead to more expensive flights.

“Air travel in China is about to get more expensive,” says CNN, as the Civil Aviation Administration has lifted price caps on airline tickets on domestic routes.

  • The new rules take effect immediately, and state that for any route served by at least five carriers, “state-run airlines can now hike prices by as much as 10% a year.”
  • Chinese airline shares prices surged “amid expectations that the move will boost profits, with the Lunar New Year national holiday approaching in February,” according to Reuters.
  • Beijing to Shanghai and more than 300 other routes are covered by the new rules.