China’s Spring Airlines Prices Too Cheap – Receives Fine

Spring Airlines sold more than 400 tickets on a new route from Shanghai to Jinan for 1 yuan ($0.13).

However, China has a rule that tickets cannot be discounted more than 45% of government-set base prices.

The regular price fare is 760 yuan ($97.10).

Consequently, Spring Airlines was fined $20,000 for their hot promotion.

The whole scenario, of course, makes it tough for low-cost airlines to compete with China's three main state-run carriers.

Ireland's Ryanair, Britain's Virgin Air, and the US Jetblue, Southwest and such would have a tough time trying to fly the world's most populated nation around, no?

What do you think?