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The Civil Aviation Administration of China (CAAC), watchdog of the country's aviation industry, has refuted a Beijing newspaper report which said that air fares would rise in line with price increase for aviation fuel.

"There is no price increase in domestic air tickets because we have already rooted out any 'fuel-price related' increase in our latest regulation published in April," an unidentified CAAC spokesman was quoted by the New Express on Sunday.

According to the regulation, a company can charge discount rates in domestic airlines according to its own marketing strategies so long as they do not exceed limits imposed by the CAAC.

"Any discount change within the limits is normal. Even if you bought a ticket at a 40 percent discount rate yesterday but bought another at 20 percent," the spokesman said. "It doesn't mean the ticket price has been increased."

As for prices for international airlines, any change should be approved by the International Aviation Transport Association before taking effect. Therefore, fuel price increases would not affect these airlines immediately, he said.

Despite fuel price hikes, some aviation companies have given unexpectedly high discount rates to some airlines, trying to lure more passengers after the peak season of the summer holidays.

Air China, for example, has introduced attractive discount rates in Beijing, Shanghai, Chengdu and Chongqing. Its Beijing-Shanghai fare is marketed at only 340 yuan (US$41), a 70 percent discount.