China launches airlines in Cambodia and Nepal, as it progressively shifts the regulatory balance

No country's airlines or governments own shares in more foreign airlines than China. Proposed investments into new airlines in Cambodia and Nepal would bring to 11 the number of foreign airlines known to have equity from a mainland Chinese airline or government. Airlines in Australia, Chile (the incorporated home of LATAM), Germany, Malaysia and the UAE each own or intend to own eight or nine foreign airlines. China's stakes in 11 foreign airlines is not quite the accomplishment the number may suggest. The investments are fragmented, stretching from Japan to Ghana to France, long-haul to low-cost to regional. The investments are typically uncoordinated and offer limited synergies.

Reasons to own airlines are varied but generally conform to a basic principle. For Australia and Malaysia, they own affiliates to expand the footprint of local LCCs Jetstar and AirAsia. Chile and Germany own airlines to increase the regional exposure of their heavyweights, LATAM and Lufthansa - and airberlin. The UAE's stakes seek to increase the global partners for Etihad Airways. China's airlines display more varied reasons, so its acquisitions will continue to grow. Undoubtedly with time more of China's stakes will become significant - and challenge global norms.