Business / Industries

Fares take off at some airlines hit with lost revenue

By Wang Wen (China Daily) Updated: 2014-02-27 07:30

A jet plane of Air China takes off at Sanya Phoenix International Airport in Sanya city, south Chinas Hainan province.[Photo/dfic.cn]

China Southern Airlines Ltd, the largest carrier in the country by fleet, adjusted its first-class and business-class fares on 157 domestic routes Tuesday.

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In order to make up for business lost to the central government's ongoing austerity campaign, the new prices are higher than before, said a manager at an airline ticket agency based in Beijing, although some prices are lower on a few routes.

China Southern divided the adjusted routes into five categories, with first-class fares at the highest level. Covering 21 routes, they are three times as expensive as the regular price of economy class fares, the carrier said.

Since 2010, Chinese airlines have been able to independently set prices of the business-class and first-class fares.

Before Tuesday's adjustment, first-class fares usually were between 145 and 280 percent of economy class fares on China Southern. Business-class fares were from 120 to 180 percent.

Other main carriers in China, including Air China and China Eastern Airlines, declined to comment on China Southern's fare adjustment.

"Hainan Airlines will base its fares on market demands," China's fourth-largest carrier told China Daily.

But an airline ticket agent, who refused to be identified, commented that once one main airline adjusts its fares, the rest generally follow suit.