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Metro Beijing

First-class prices jump for China's big airlines

Updated: 2010-07-06 11:34
By Wang Wen ( China Daily)

Many first-class and business-class passengers flying out of Beijing will now have to pay more for the privilege.

The two main airlines in China - Air China Limited and China Eastern Air Holding Company - raised their prices of first-class and business seats one month after the Civil Aviation Administration of China announced that China's airlines could set such prices themselves.

Air China will raise their ticket prices on 43 routes, 35 of which will involve Beijing, starting July 15.

The adjusted price of first-class seat is 2.3 times that of economy class seats and the new price for business class is 1.8 times of that of economy class.

According to the Civil Aviation Administration of China, ticket price of first-class and business cabins were 1.5 and 1.3 times of tourist class cabin respectively before.

China Eastern Air's new first-class prices and business-class prices are 2.5 times and 2 times as expensive, respectively, as its economy-class fares.

China Eastern raised the prices on Beijing-Shanghai routes more than other routes.

"We did so because we have more demand for the high-end seat on those routes than on any others," said Li Yi, a senior editor of the China Civil Aviation, a professional magazine on civil aviation.

Chengdu Economic Daily reported that an insider said the markup is unexpected because there is generally low demand for first-class seats across the aviation industry.

But Li maintained it was indeed a good time to hike fares, given China's ever-increasing number of rich people.

"Those who choose first-class, care about the service rather than price, so the rise will not affect sales," Li told METRO.

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