Originally Posted by
seanpodge
Perhaps, although when I search on Taobao, prices are still expressed as a discount from the full Y/J class fare using an x.x折 format across all airlines, so it's hardly a free market. HRB-PEK has 4-5 airlines on it depending on if the regulators consider HU and CN separate airlines or not, so maybe it's escaping market liberalisation due to being under 5 airlines on the route.
One thing that might also keep airlines honest, particularly on shorter routes, is the spread of HSR in China, which still has set prices. Harbin-Beijing is still uncompetitive, with the fastest service still just over 7 hours (vs 2 hours gate to gate). However from January 1st the Shenyang - Beijing HSR should open and cut at least two hours from that so the train will start looking more attractive. So that should keep airfares under control on this route at least.
I have a feeling that x.x折 pricing will go the way of the dodo bird within a few years when the basis becomes completely meaningless. In other words 50% off only makes sense when the basis is a known constant.
Practically speaking, I can't imagine deregulated pricing having a great deal of impact on most people. Sure, they can charge Y5,000 for PEK-HRB now, but if there are no takers, those fares might as well not exist. What's more, many routes almost never get close to full fare under the current system.