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Discounted Packages Challenge Domestic Airlines
China's domestic airlines are facing a challenge when three foreign airlines announced to reduce air fares to passengers traveling from major Chinese cities to the United States.
The United Airlines, Northwest Airlines and Air France all promised to offer discounted packages. United Airlines said that it would give Chinese students studying in US universities a 440 yuan discount in the air fare from East China's Shanghai to New York. North Airlines' discount will be as high as 30-50 percent, and that of the Air France will reach 50 percent.
"The Chinese aviation authority has not yet given people much confidence in its airlines' ability to compete in this market," Friday's Chinadaily said.
It still refuses to loosen its control on prices, although it urges domestic companies to improve services and mend their images.
"it is time for the aviation authority to consider giving the right of pricing to the market," the paper said.
So far, no domestic aviation companies have expressed inclination to follow suit in this price battle.
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