China's civil aviation authorities have allowed ticket prices on 1,030 domestic air routes to be set based on the market.
Zhang Qing, an official with the Civil Aviation Administration of China (CAAC), said airlines can change prices within a limited range of 10 percent to avoid extensive, sharp price hikes.
The CAAC also urged airlines to ensure stability in the air transport market and make price changes in a rational way.
While the aviation regulator further liberalizes fees, a price supervision mechanism will also be established to record and punish illegal practices.
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