Price floor to be set for air tickets

The civil aviation authority has ordered airlines not to compete with each other by selling tickets at lower than cost price in a bid to end a price war, the National Business Daily reported yesterday.

The Civil Aviation Administration of China (CAAC) will set a floor price for seats on 699 flights, and airlines have been ordered not to sell tickets below that figure, the newspaper quoted the China Air Transport Association (CATA) as saying.

The names of airlines that offer passengers tickets at less than the CAAC minimum will be made public every 15 days, and they could face punishments, such as having routes canceled, the report said.