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Domestic Chinese airline price alliance collapses

22-Sep-2009 10:53 AM

China Eastern Airlines, China Southern Airlines, Shenzhen Airlines, Xiamen Airlines, Sichuan Airlines, among others, are reportedly returning to the old pricing system, marking the collapse of the ‘prices alliance’, which was in effect for less than six months (People’s Daily Online, 21-Sep-2009). It is expected that average fares will fall by 10-20% as airlines revert to the former system.