China Eastern Airlines Down as CAAC Cuts Domestic Fares

At 11:40 a.m. Hong Kong time, China Eastern Airlines (0670) dropped HK$0.03, or 2.59 % to HK$1.13, after falling 2.5 % yesterday. China Southern Airlines (1055) played fair at HK$2.10 after falling a 3.4 % decline yesterday. According to CAAC press officer Ma Song-wei, CAAC allowed airlines to cut fares on seven of the country's busiest routes effective yesterday,the discounts of up to 40 % were granted because the routes are crowded with airlines, keeping load factors low and leading to inefficient use of available space and the move doesn't amount to across-the-board airfare deregulation.

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