Jane Chen / Shanghai Daily news
Are you willing to accept a more basic service in return for a cheaper air
ticket?
This is the central topic of tomorrow's public hearing regarding
Spring Airlines Co Ltd's proposal on budget air services.
The outcome will
be passed on to the aviation industry watchdog, Civil Aviation Administration of
China (CAAC), for a final verdict, according to today's Shanghai Morning
Post.
In this sense, tomorrow's hearing is vital to the Shanghai-based
private carrier's take-off in the previously state-run aviation market.
If
the proposal is approved at the hearing and finally accepted by CAAC, Spring
Airlines' air service may be up to 20 percent cheaper than current services,
providing it with a sharp competitive edge on its debut.
At the moment, the
outcome of the hearing remains uncertain, according to a CAAC official quoted in
the Shanghai Morning Post report.
"It may depend on the views of consumers at
the hearing for the final decision," said Li Jingao, director with CAAC East
China branch's market administration department.
He said eight consumer
representatives as well as CAAC officials and industry representatives are
invited to tomorrow's hearing. "If the hearing approves the proposal, it
is expected that CAAC will adopt its recommendations," he said.
But some
proposals, such as for lower airport landing fees, are unlikely to be acceptable
to CAAC, Li pointed out.
It is unfair for the industry authority to
charge different fees to the various airlines, he explained.
He advised
private carriers to explore the advantages of their smaller size in order to
control costs in other ways.
For example, they could use smaller airports at
non-peak times to achieve lower fees and raise their efficiency by increasing
their seat-occupancy rates, he noted.
Spring Airlines has become China's
third private carrier after receiving the go-ahead from CAAC in April.