Beijing (XFN-ASIA) - It is too early for China's three major
state-owned carriers - Air China, China Eastern and China Southern - to pursue
mergers with each other, the official Xinhua news agency reported, citing civil
aviation regulator Yang Yuanyuan.
"Personally, I don't agree to the restructuring of the big three carriers, as there should not be a unique voice on China's civil aviation market," Yang said on the sidelines of a conference held here on Monday.
He said each of the three airlines does not have sufficient capability to manage a company the size of a merged entity, adding: "The development of the nation's civil aviation sector requires competition among the three majors as well as regional and private carriers."
The remarks come amid speculation of M&A activity among the big three, which themselves were formed from a restructuring of state-owned carriers in 2002.