Air China does not see its website as a channel to dump low fares; rather it sees it as a way for the airline to strengthen its relationship with customers.

Fajin Hu, the airline' s senior manager of e-commerce, said that although the majority of air fares placed on its website were lower than those in its other distribution channels and yes, the airline does want to push direct sales, "our goal is not to reduce intermediary costs".

He said that it was a way of providing self-service for customers and strengthening interaction with end users through the Internet.

Customers want to interact directly with us, he said during a panel on "Channel Distribution vs Direct Sales" at the China Travel Distribution Summit 2010 in Beijing last week.

The only way to provide self-service and improve engagement and thus loyalty was through its own website, he added.

Hu said that compared with OTAs such as Elong and Ctrip, Air China's direct sales was still weak. "My team is only 20 and although we have control or product or price, we can do better."

Only four percent of total sales comes through its own website – 10% including call centres. This compares with the 20-30% direct sales and 10% call centres being done on average by Star Alliance member airlines.

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