Air China, the Beijing-based national flagship airline, recently launched a scathing attack on China Northwest Airlines by accusing it of unfair competition.
It claimed the
Lanzhou branch of China Northwest Airlines prevented local ticket agents from selling air tickets for Air China.
The headquarters of China Northwest Airlines is located in Xi'an, capital of Shaanxi Province, with two subordinate aviation companies in Lanzhou, capital of Gansu Province, and Nanjing, capital of Jiangsu Province.
Sources with Air China suggested China Northwest warned ticket agents in
Lanzhou not to sell air ticket for Air China, which started a new flight linking
Beijing and
Lanzhou on Tuesday.
Failure to agree would lead to them having their ticket-sales network cut off.
They said the protective measure would deter many potential passengers in
Lanzhou from using Air China for the journey, bringing them huge economic losses.
Such a situation had happened on other air routes of Air China such as between
Beijing and Taiyuan, capital of Shanxi Province, the sources said. Ticket agents in
Taiyuan were also warned not to sell tickets for Air China when the new flight started late next year.
Sources close to the China Northwest said the
Beijing and
Lanzhou air route is one of the most lucrative lines of the debt-plagued air carrier. China Northwest has been holding the monopoly on the route since it was established in 1989.
Despite securing enough business and tourist travellers, China Northwest never lowered its ticket price. It remained constant between 1997 and 1998 when most domestic airlines were involved in cut-throat price discounting.
Officials with China Northwest refused to comment on the row in a telephone interview Wednesday. Most said they were unaware that such a dispute was even taking place.
Officials with General Administration of Civil Aviation of China, the aviation industry watchdog, said they had not received any complaints from Air China of unfair competition.
They said they would help mediate in such disputes if Air China complained to the administration.(China Daily)
