Recently, CAAC and National Development and Reform Commission (NDRC) jointly issued the Notice on Issues Relating to Further Expansion of the Reform on Airfares of Domestic Routes, which clarified that from December 1, 2020, at least three airlines will be allowed to set the airfares for the domestic routes they operate (hereinafter referred to as domestic airfares). After the reform, the number of domestic routes with market-oriented prices will increase substantially, and the mechanism where prices are determined by the market will be further strengthened.

CAAC and NDRC have actively promoted the reform on domestic airfares since 2004, and have simultaneously strengthened domestic airfare supervision, and continuously optimized market environment. Especially since 2013, the domestic airfare reform has picked up pace and achieved remarkable results, which effectively stimulated the vitality of the market.