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Airline fined for selling cheap tickets

18 December 2006

Chinese regulators fined a low-cost carrier nearly $20,000 after the airline rolled out a fare sale offering 13-cent tickets. In doing so, regulators say the airline broke national pricing rules: “‘Spring Airlines … sold more than 400 tickets on a new route between Shanghai and the northern city of Jinan for just 1 yuan (US $0.13),'”.

Spring Air’s fares apparently violated a 2004 rule that bars airlines from offering more than a 45% discount off government-set base fares. “‘A regular one-way ticket on that route costs 910 yuan (US $116), including taxes,'”. The case underscores the difficulty facing Chinese low-cost airlines, which are trying to model themselves on carriers such as Ireland’s Ryanair in bringing cheap no-frills travel to the world’s most populous nation.

source: USA today

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