China expands domestic route airfare reform

The Civil Aviation Administration of China (CAAC) said on Nov 26 that it would liberalize airfares of domestic routes operated by at least three airlines from Dec 1.

The reform will substantially increase the number of domestic air routes with market-based prices, and the mechanism for the market to determine prices will further strengthen, the CAAC said.

This move will likely continue to tap domestic market demand and accelerate the recovery of the sector.

The CAAC has been boosting reforms on fares for domestic air routes since 2004 and stepped up such efforts, especially since 2013, effectively spurring the vitality of the market.