Air China, China Eastern and China Southern will
each take over smaller airlines and form three new group companies, said CAAC
director Liu Jianfeng at the annual aviation meeting Tuesday.
Other aviation companies can either choose to merge themselves or join the three
groups.
Liu said, China also plans to regroup other companies that provide services for
airlines.
Meanwhile, China will deepen the reform of the management of 129 airports and
abolish 24 local aviation administrations. To remain are only seven regional
aviation administrations, namely North China, East China, Central China,
Northwest China, Southwest China, Northeast China and Urumqi administrations.
Restructuring in Aviation Sector to Help Improve Competitiveness
The reorganization of the domestic aviation industry is going smoothly and is
expected to be completed within two years.
The three new aviation groups involve Beijing-based Air China, Shanghai-based
China Eastern Airlines and Guangzhou-based China Southern Airlines and they will
combine assets, aircraft and management in line with the WTO commitments.
New Aviation Group to Be
Formed
A new airline group combining China Southern Airlines Co. Ltd., China
Northern Airlines and China Xinjiang Airlines will be set up soon in an attempt
to meet challenges from the domestic and overseas aviation markets.
According to the principal, organizing the three into one is aimed at
reinforcing their competitive edge.
Six Chinese Airlines
Enter Alliance
Six Chinese local airlines have recently formed an alliance to better
compete in an increasingly fierce market.
Members of the new China Sky Aviation Enterprises Group are the Shandong
Airlines, Shanghai Airlines, Shenzhen Airlines, Sichuan Airlines, Wuhan Airlines
and the China Post Airlines.
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