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Airfares to float
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CHINA'S three-year-long control of plane ticket prices is expected to see a breach early next month, when the united operation agreement local airlines currently have with the Civil Aviation Administration of China (CAAC) expires.
Although CAAC, the watchdog of China's civil aviation industry, will still sign new contracts with State-owned airlines, insiders have suggested that discounted air tickets between major domestic cities might be made available.
CAAC has banned any form of discounted fare since 1998, and promised late last year it would loosen price controls at an appropriate time this year.
A report form the China News Service quoted CAAC sources as saying that the administration will allow more air routes to discount tickets after the industry's regrouping is completed in the first half of 2001.
Local airlines refused to comment on a possible decision by CAAC, though most of them agreed that a more competitive market would help propel the development of the industry.
In another development, Wang Qishan, director of the Economic Restructuring Office of the State Council, said on Monday that the government will take bold steps to end the monopolies in some sectors, such as electricity, railways, civil aviation and telecommunications.
The reforms will break monopolized businesses and open them to competitors except those concerning national security, natural resources, and a small amount of public facility industries and public services, according to Wang.
Monopolies in some sectors have hindered the establishment of a market economy and the development of China's infrastructure and public facility construction, he said.(Xinhua)
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