China

CAAC denies price alliance among Chinese airline giants

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Beijing - China's aviation industry regulator Civil Aviation Administration of China (CAAC) denied on Thursday media reports that China's five airline giants have colluded to raise air ticket prices.

According to an official with CAAC, many low discount air tickets still exist after TravelSky Technology Limited (eTerm), China's leading state-owned air ticket sales company, upgraded its sales system.

Previously, eTerm, which has monopolized air ticket sales by China's major airline companies including Air China, China Eastern Airlines and China Southern Airlines, Shanghai Airlines and Hainan Airlines, recently announced a move to adopt a new air ticket sales system which essentially cut down previously available discounts on its ticket sales.

Upon hearing media reports that Chinese airline giants have colluded to artificially lift the price of air tickets, Zhang Chunzhi, spokeswoman with Air China, denied the claims.

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