Beijing flights dearer to head off congestion

AIR tickets to Beijing now cost more after the aviation regulator slashed flights at Capital International Airport to ease congestion.

Discounts have been reduced to an average of 10 percent for flights from Shanghai to Beijing at major ticket agencies.

At Ctrip.com, China's dominant online travel agency, such flights in the coming couple of weeks cost 1,020 yuan (US$134.28) - a 10-percent discount from the regular price. Discounts were previously up to 70 percent in slack seasons.

Wu Wei, a ticket agent at the Shanghai Ticket Customer Service Center said the price increase was partly led by flight reductions to the capital.

"The flight adjustment, along with the summer busy season, cut the supply of tickets and pushed up the prices," said Wu.

The General Administration of Civil Aviation slashed flights to the capital airport, which has long suffered congestion.

Air China Ltd, China Eastern Airlines Co and China Southern Airlines Co, the nation's three largest carriers, each axed 10 daily Beijing Capital International Airport flights starting on Wednesday.

Hainan Airlines Co, the fourth-largest, cut eight flights. Shanghai Airlines reduced one flight.

The authority plans to cut its total flights by 336 to 1,050 per day by the end of October and down to 1,000 by the end of March next year.

"The flight reduction to Beijing may arouse price battles on other domestic routes since it enables carriers to spare some aircraft from Beijing," said Ma Ying, an analyst at Haitong Securities Co.

"The move, together with an additional runway, will help address the long-existing congestion problem."

The aviation authority has announced trial operations for a third runway at the capital airport to handle the passenger boom during the Olympic Games next summer.

The new runway, with an October opening if endorsed, will expand takeoff and landing capacity at the airport by 50 percent. The number of flights will increase by 30 to 90 an hour.

The runway, plus a third terminal, will raise the annual capacity of Beijing's main airport to 78 million passengers ahead of the Olympic Games.