The Fair Trade Commission has ordered China Airlines and EVA Airways to pay 20 million and 21 million NT dollars in fine respectively, for violating the fair trade regulation and by simultaneously raising the airfare of direct cross-strait flights. However, the two airliners said that the commission adopted wrong figures and they will seek administrative remedy to save their reputations.

After cross strait flights started, many passengers are complaining that ticket prices are too high with the Civil Aeronautics Administration holding many meetings with airlines, asking them to lower ticket prices.

After an year-long investigation, the FTC discovered that, China Airlines and EVA Airways both adjusted the ratio of cheap to expansive economy class tickets after their announcement to lower prices, which, in the end, is like not lowering ticket prices at all.

Take Taipei to Shanghai for example, even though the ticket price was lowered by NT$3,000, passengers are not able to purchase a seat at that fare.

The FTC said that, on the average, both airlines did drop the fares, but not the average price, which is the same as not adjusting prices and it had violated Fair Trade Act, thus the fines.

Both airlines disagree with the numbers the FTC used to penalize them and will not rule out the possibility to ask the government to step in to help save the business image.

FTC pointed out that, the cross strait ticket price is the structure problem, while it would communicate with CAA to ask for more regulation possibilities.

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