13-May-2010 11:14 AM

CAAC will not inject further cash into Chinese airlines: Secretary

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.

Want More News Like This?

CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More