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Passengers to Get Say on Ticket Prices

Ordinary air passengers are to have their say over future changes in ticket prices by the Civil Aviation Administration of China (CAAC).

Under a new amendment to China's Price Law, a public hearing will be required when transport authorities adjust prices.

Representatives of consumers, transport experts, air carriers and officials will discuss the impact of price changes at the hearing before the pricing authorities decide on a solution,which should take into account the interests of all parties.

Sources at the adminis-tration's finance department told China Daily yesterday that the department is working with other relevant departments under the State Development Planning Commission - China's highest pricing authority - on the format of the public hearing.

Sources said:"It will take a relatively long period of time to select consumers, enterprises and experts for the hearing. They should represent well the interests of their respective groups."

At the public hearing, the administration will propose a general rate based on kilometres travelled per person, rather than proposing a price for every air route.

"We have 1,032 air routes in total and it's impossible to discuss a ticket price to go with each one," the sources said.

Based on the rate for kilometres per person, the administration could then decide the ticket price for each of the 1,032 routes according to its length.

In 1999, the average price was 0.76 yuan (9 US cents) per kilometre per person. It was increased to 0.85 yuan (10.2 US cents) in November last year after oil prices rocketed on international markets.

Aviation officials suggested a hearing would not take place in the industry in the immediate future.

Air-ticket prices have not risen sharply since last year, not even during peak holiday periods, due to harsh competition from road and railway transportation.

( China Daily December 17, 2001)

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