Airfares going up

China's civil aviation authorities allowed domestic airlines to raise economy fares for domestic routes to offset the impact of jet fuel price hikes. A normal air ticket between Beijing and Shanghai costing RMB 1000 (US$121) increased by RMB 30 (US$3.60). Fares for European and Australian routes are expected to go up significantly, while those for Japanese and South Korean routes are likely to remain at 2003 levels.

China Eastern switches to London China Eastern Airlines will suspend its money-losing routes to Munich and Madrid and focus on the route between Shanghai and London, which is now operated profitably by Virgin Atlantic Airways. The new route, with three flights a week, will be started on April 1 to accommodate a growing number of Chinese passengers, many of whom are students.