Airline ticket reforms introduced

Reforms in the pricing of airline tickets in China that will increase market influence on price fluctuations were announced by the National Development and Reform Commission (NDRC) and the General Administration of Civil Aviation of China (CAAC). Airline companies will be able to determine ticket prices based upon the official price of US$0.09 per person per kilometer, with the two government ministries regulating price fluctuations, which will be limited to between 25% above or 45% below the official price. Short air routes will be able to fluctuate freely without government regulation. The reforms will become effective on April 20, 2004.