Air freight prices freed in China

China’s government moved away from its long-standing policy of aviation price regulation — at least for cargo.

In a document jointly released in early November, the Civil Aviation Administration of China (CAAC) and the National Development and Reform Commission (NDRC) announced that the country’s carriers will be allowed to set their own rates for both cargo service and for some inter-provincial passenger flights. The freedom is not complete, as the government will continue to set minimum prices.

Commenting on the move, the Deputy Director of the China Air Transport Association, Wu Tongshui, said the move would help activate the market, attract more private investment and enhance the competitive edges of carriers.