The passenger load factor – the measure of how full planes are - are running high in China and with China set to overtake the US by 2022 as the world’s largest air travel market by research from the International Air Transport association, the world’s second largest economy and the most populated country to many analysts is taking advantage of the increase in transport activities in the country.
For some years now, Chinese authorities have kept a tight regulation on how much state flights can charge but in a release this year the authorities want to keep a relaxed approach to this rule.
This year the Chinese aviation regulatory authority has lifted the limit on how much passengers are to pay for government owned carriers which means that prices of air fare can go as much as 15 percent every year.
The news was met by a jump in share prices of the flight companies. Shares in Air China – a big state carrier jumped to 6.1% when the news broke.
This new regulation applies to about 300 domestic Chinese routes.