Before setting up this investigation, CAAC (the General Administration of Civil Aviation of China), had asked domestic airlines to conduct their own investigation of their ticket agents who might have violated ticket sales policies.

CAAC sources said ticket agents who stop selling discounted tickets before the new inspection campaign starts will be exempted from punishment. But the ones found still providing discounted air tickets will be severely punished, including withdrawal of their agent qualifications.

CAAC insisted the cut-throat ticket price war in 1998 was the major reason behind the industry's deficit for that year, and vowed to stop illegal ticket discounting at that time.

But defiant travel agents seeking to boost passenger numbers on domestic flights have continued to slash ticket prices - despite warnings of harsh punishment.

They are offering tickets at half the stated price on selected routes, claiming it is a necessary move to prevent having near-empty flights.

But this time CAAC seems more determined to carry out the house cleaning than ever, with the participation of four ministerial-level partners.

The investigation teams will consist of personnel from the Ministry of Public Security, the State Administration of Taxation, the State Administration for Industry and Commerce, and the State Development Planning Commission. This make-up of the team will give it more power in investigation and law enforcement.

The inspectors will conduct spot checks in major domestic air hubs over the next two months.

Those agents without the correct certificates will be shut down and their sales income confiscated.

If ticket agents are caught selling cheap tickets, illegal after the first warning in June, then both the airlines and the agents will be punished under the Criminal Law.

( August 7, 2002)