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Air China, other Chinese carriers to see increased competition on domestic routes

Passengers taking Air China flights will see increased competition on domestic routes in China now.

Chinese government recently announced it wants the civil aviation industry in the country to get a major boost. The government said that it will help domestic airline companies to list and issue bonds by tapping financial services for them.

A guideline issued recently by China’s Cabinet or the State Council said that the government is planning to set up investment companies with an objective to buy stakes in the Chinese carriers.

According to the government, the largest state-owned carriers, prominent among them being Air China, China Southern Airlines, China Eastern Airlines and Hainan Airlines, are currently listed on A-share market. Apart from these, some private airlines such as Juneyao Airlines and Shanghai-based Spring Airlines are trying to make it to the list.
The government wants to create a safe, highly efficient and convenient modern civil aviation industry in the country by 2020. The government also indicated that it hopes to see domestic civil aviation market to increase by 10 percent in 2012.

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