Spring Airlines became the first low-frills airline to be fined for selling low-priced tickets, China Business News reported on December 18.

Shandong Jinan's pricing department fined the company's Jinan division 150,000 yuan (US$19,182) on December 14 for selling one-yuan-tickets for flights between Shanghai and Jinan from November 30 to December 10. This was much lower than Chinese government's guiding price.

The government stipulates that companies can sell tickets at 45 percent to 125 percent of the guiding price.

Zhang Lei, a spokesperson of the Shanghai-based carrier, said they received a fine list from the department on December 14, and have asked for a fresh hearing in an attempt to have the decision revoked.

The airline has offered low-priced tickets, including 99 yuan, 199 yuan and 299 yuan, to attract customers since it opened in July, 2005. Its average ticket price is 36 percent lower than the average level in its sector.

Zhang said flights of one-yuan-ticket takes off at 11:20pm, so the company cut the price in the off-season to decrease loss and attract more passengers.

Carriers began a price war after China's civil aviation authority allowed some private airlines to fly between Beijing, Shanghai and Guangzhou in the winter-spring flight schedule, increasing competition on the busy routes.