The Civil Aviation Administration of China (CAAC) has loosened control on China airlines' ticket prices to assist airlines in attracting more passengers to compete with China's high-speed rail network.
On November 6, 2013, CAAC and the National Development and Reform Commission (NDRC) abolished the lower price limit for domestic flights, which previously restricted the extent to which ticket prices could be reduced to no less than 45% of the full fare.
Now Chinese airlines can reduce flight fares to offer special-priced flight tickets, especially during the low season.
In response to the new regulation, Spring Airlineshave now launched flights form Tangshan to Shijiazhuang at only 9 yuan. They also plan to open a new flight from Shanghai to Taipei in the near future, with a ticket price of only 199 yuan during the introduction period.
Shanghai Juneyao Airlines, another low-cost airline, have filed an application with the CAAC to set up a new low-cost carrier. The new carrier, named '9 Yuan Airlines', located in Guangzhou is currently awaiting approval. If all goes to plan, a number of 9 yuan and 19 yuan flights will be offered after the new low-cost carrier begins operations.
It is expected that there will be a growing number of low-cost airlines in China in the future, which means more choices for people wishing to travel. Cheaper transportation costs will make it possible for future travelers to go out and see the world without being burdened by the current high cost of air travel.
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