High prices in airports: No hope to fall?
By Guan Xiaomeng (chinadaily.com.cn)
Updated: 2005-11-16 14:17

But the fact is most of the airports in the mainland are not completely government-funded; instead, the money is raised through listed companies. As a result, airports, unlike public facilities, are more and more profit-oriented. Between serving the public and making a profit, airports will choose the latter.

Business is dull in airport shops. [Xinhua]

Still, as airports are publicly owned, the government has the power to administrate airports on behalf of the public. But the dilemma embarrassing the government is whether to act in conformity with market principles or to protect consumers' rights.

In foreign countries, interest groups authorized by the government own the airport business stalls. In this way, the government can concentrate more on the airport plan and administration instead of directly supervising profit-making programs.

However, according to an investigation in April, a small bag of popcorn is sold for 28 yuan in the Chengdu Shuangliu Airport; two apples are sold for 305 yuan (a whopping US$37.73) in the Beijing Capital International Airport; and a bowl of noodles is sold for 48 yuan in the Shanghai Pudong International Airport. To justify the sky-high prices, the stall owners explained that the customers were so rare that they were not likely to earn even their stall rents without such high prices.

Perhaps they will never lower the prices even with more customers as long as the government has a share of the profits.