Mon, Dec 18, 2006
And You Thought American LCCs Were Cheap...
A Chinese low-cost carrier has been fined by the government, for
selling really, REALLY cheap tickets that violated price
The official Xinhua News Agency reports a travel agency
subsidiary of Spring Airlines was fined approximately $20,000 USD
for breaking Chinese regulations that set a limit on how much --
and how little -- an airline can charge on a particular route.
The Jinan Spring Holiday Travel Agency sold 400 deeply
discounted tickets on flights between Shanghai and the eastern city
of Jinan. A regular ticket on that route costs approximately
The travel agent's price? Thirteen cents.
Needless to say, the discount rates proved very popular... with
those flights accounting for 10 percent of all Spring flights from
November 30 to December 10.
CNN reports Chinese airlines are forbidden from offering
discounts greater than 45 percent off the government-set price.
Spring's discount amounts to 1/892th of the regular price on the
Three government-run airline groups dominate the vast majority
of routes in China.
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