Price Cut for Airline Tickets Expected

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Last updated at: (Beijing Time) Tuesday, November 27, 2001

Price Cut for Airline Tickets Expected

Chinese passengers are expected to see lower air ticket prices in the months ahead. The cut is attributed to slumping aviation oil prices on international markets. CAAC expests to see booming traveling seasons.

Air ticket prices cut

Chinese passengers are expected to see lower air ticket prices in the months ahead, said sources close to industry watchdog General Administration of Civil Aviation of China (CAAC).

Low oil prices cause low air ticket prices

The cut is attributed to slumping aviation oil prices on international markets, and Chinese government efforts to breathe new life into the sluggish domestic airline industry.

China's sole aviation oil supplier, the China Aviation Oil Supply Corporation, announced on Saturday a cut in the oil price per ton to 2,680 yuan (324 U.S. dollars), down 450 yuan (54 U.S. dollars) on its peak price.

Air China, the country's largest airline, consumes 100,000 tons of oil a month, and the new price will save the company 45 million yuan (5.4 million U.S. dollars) in oil cost every month.

The oil supplier made it clear that the price cut coincided with the falling international oil price, which had dived to less than 20 U.S. dollars a barrel earlier this month.

Booming traveling season expected

The lower aviation costs provided CAAC with a good reason to lift the 15 percent additional oil price it had passed on to passengers since last October.

The anticipated cut will probably come at the end of this year or early next year to boom the traveling season in the Spring Festival, said the newspaper.

The CAAC is a State Council ministry responsible for national civil aviation affairs, including the following:

Drawing up policies, development strategies, long-term plans, laws, rules and regulations for civil aviation; drawing up related standards and personnel qualifications;

Directing the restructuring of the aviation industry and the reform of aviation enterprises; administering the air transportation and aviation market;

Administering the operation licenses of enterprises; working out price policies and wage policies; managing budget funds; coordinating aircraft procurement;

Ensuring flight safety, airworthiness, and aviation security; investigating accidents;

Managing flight routes; approving flight orders; administering civil aviation navigation telecommunications, navigation information and aviation meteorology;

Approving airport plans; administering licenses for civil airports;

Managing local civil aviation management bureaus; administering flying schools;

Overseeing aviation negotiations and contracts with overseas partners; representing China in international civil aviation organizations and inter-governmental activities.

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