CAAC Secretary, Li Jiaxiang, revealed at the China Civil Aviation Development Forum 2010 that the CAAC will not inject any further cash into China's state-owned airlines, now or in the future, adding business cooperation is the responsibility of individual enterprises and central enterprise injections are the responsibility of the State-owned Assets Supervision and Administration Commission of the State Council (Economic Observer, 12-May-2010). Mr Li made the statement amid reports that the CAAC plans to inject cash in a proposed integration of the cargo subsidiaries of China’s "big three" airlines, Air China, China Eastern Airlines and China Southern Airlines and form one cargo airline. At the beginning of the year, the CAAC stated it would focus on the development of the country’s cargo industry and will encourage cargo airlines to undergo mergers and acquisitions, restructuring and business cooperation. Furthermore, in its Development Strategic Plan, the CAAC stated it plans to develop at least one internationally competitive airline company and one internationally competitive cargo airline by 2030.
CAAC will not inject further cash into Chinese airlines: Secretary
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China's concentrated and en masse travel periods present a challenge for sustainability. Airlines local and foreign are often reduced to hoping that routes will be annually profitable based on a few weeks of travel during Chinese New Year, the brief summer peak, and the autumn holidays. With load factors consistently high, yields are weakened, either on point-to-point traffic or as Chinese airlines aggressively discount connecting/transfer traffic.
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China and Australia remove airline growth restrictions as China cautiously embraces open skies
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