China airlines shares up on fare liberalisation

Beijing

CHINESE airline shares surged after the government gave airlines more freedom to set fares for domestic flights, easing state control over prices.

China removed the caps on full fares, and airlines can decide on prices for routes as long as they are served by at least five carriers, according to a joint statement by the Civil Aviation Administration of China (CAAC) and the National Development and Reform Commission last Friday. Any planned increments for fares should be within 10 per cent, they said.