CHINA UNIFORMLAW NET

Article 1.   In accordance with Civil Aviation Law of the People's Republic of China, Counter-Unfair Competition Law of the People's Republic of China and other relevant laws and administrative rules, these regulations are formulated to maintain normal order in the civil air transportation market in the Country, to encourage and protect fair competition, to prevent unfair competition, to protect the lawful rights and interests of operators, passengers and shippers and to safeguard the healthy development of civil air transportation market.

Article 2.   These regulations apply to the legal persons and other business organizations engaged in civil air transport operations within the territory of the People's Republic of China.

Article 3.   All legal persons and other business organizations engaged in civil air transport operations shall observe the State laws, the administrative rules and the regulations of the General Administration of Civil Aviation of China, act upon the principles of free will, equality and bona fide, compete fairly, ensure flight safety, strive for regular flight and provide high quality services.

Article 4.   The General Administration of Civil Aviation of China (hereinafter, CAAC) is generally responsible for supervising and inspecting unfair competition acts in the civil air transport market in the whole country. The relevant functional departments under CAAC shall, according to division of duties, strengthen the supervision and inspection over unfair competition acts in the civil air transport market.

The regional civil aviation administrations (hereinafter, the regional administrations) are responsible for supervising and inspecting unfair competition acts in their respective regions.

Article 5.   The working personnel of CAAC and those of the regional administrations shall not support or harbor unfair competition acts.

All organizations and individuals are encouraged, supported and protected to conduct social supervision over unfair competition acts in civil air transport market.

Article 6.   An air transport enterprise shall not commit any of the following unfair acts in its operations:

Article 11.   CAAC and the regional administrations shall, in accordance with Article 17 of Counter-Unfair Competition Law of the People's Republic of China, exercise supervisory and inspecting power over unfair competition acts in the civil air transport market.

Article 12.   When a relevant functional department under CAAC or a regional administration is examining or inspecting an unfair competition act, the enterprise (organization) to be examined or inspected or other related parties shall report the relevant situation and information accurately, and shall not give false information or conceal the truth unreported.

Article 13.   In case of an unfair competition act, any organization or individual may lodge a charge with or report the case to CAAC or the relevant regional administration. No one may obstruct or hold the report back. Upon receiving the charge or the report and promptly organizing an investigation and handling, CAAC or the regional administration shall notice the person who lodged the charge or reported the case of the endings of the investigation and handling, and shall keep the secret for him if he requires.

Article 14.   Any violator of the provisions of subparagraph 1 of Article 6, subparagraph 3 of Article 7 or subparagraph 1 of Article 9 of these Regulations shall, in accordance with the relevant provisions of Counter-Unfair Competition Law, be ordered to stop the illegal acts, be confiscated of the unlawful earnings, and shall be concurrently punished by a fine of not more than 200,000 yuan but not less than 10,000 yuan. Under aggravating circumstances, the violator shall by punished by stopping flights on part of its air routes, and even further, revoking its operation certificate.

Article 15.   Any violator of the provisions of subparagraph 2, 6 or 7 of Article 6, subparagraph 5 of Article 7 or subparagraph 2 of Article 9 of these Regulations shall, in accordance with the provisions of Article 22 of Counter-Unfair Competition Law, be ordered to stop the illegal acts, be confiscated of the unlawful earnings, and shall be concurrently punished by a fine of not more than 200,000 yuan but not less than 10,000 yuan. Where a crime is constituted, the violator shall be subject to criminal prosecution according to law.

Article 16.   Any violator of the provisions of subparagraph 3, 4 or 5 of Article 6, subparagraph 1, 2 or 4 of Article 7 or subparagraph 3, 4 or 5 of Article 9 of these Regulations shall, in accordance with the provisions of Article 23 of Counter-Unfair Competition Law, be given a warning, be ordered to stop the illegal acts, be confiscated of the unlawful earnings, and shall be concurrently punished by a fine of not more than 200,000 yuan but not less than 50,000 yuan according to the seriousness of the case.

Article 17.   In case of violation of the provisions of subparagraph 6 of Article 7of these Regulations, in accordance with the provisions of Article 27 of Counter-Unfair Competition Law, the bid shall be null and void, and the violator shall be punished by a fine of not more than 200,000 yuan but not less than 10,000 yuan according to the seriousness of the case.

Article 18.   Anyone who commits any of the acts enumerated in Article 8 of these Regulations shall, in accordance with the provisions of Article 22 or 23 of Counter-Unfair Competition Law, be ordered to stop the illegal acts and be confiscated of the unlawful earnings. The violator shall be held liable for the damage caused to the interested party and shall be simultaneously punished by circulating, warning, or suspending business for consolidation, and in addition thereto a fine of not more than 200,000 yuan but not less than 10,000 yuan, and even further, revoking its sale agency operation certificate. Where a crime is constituted, the violator shall be subject to criminal prosecution according to law.

Article 19.   Where a business branch established by a foreign airline that is engaged in civil air transport sales activities within the territory of China violates the laws or the rules of China or the provisions of these Regulations, CAAC shall, according to the seriousness of the case, punish the violator by warning, ordering correction within a defined time, fine, and even further, revoking its operation certificate.

Article 20.   If a party disagrees with the punishment decision by CAAC or a regional administration, he may appeal for reconsideration to the competent authority within 15 days after receiving the punishment decision. If he still disagrees with the decision on the reconsideration, he may bring a suit before a people's court within 15 days after receiving the decision on the reconsideration. He may also directly bring a suit before the people's court.

Article 21.   In case that a functional department or working personnel under CAAC or a regional administration responsible for supervising or inspecting unfair competition acts neglects his duties, abuses his power, or practices favoritism and embezzlement, he shall be subject to disciplinary sanction according to law.

Where a crime is constituted, he shall be subject to criminal prosecution according to law.