China relaxes rules for domestic carriers
BEIJING – China’s commercial aviation industry regulator, CAAC, plans to relax its control over Chinese carriers’ domestic route networks and allow them to launch new services freely by 2010.
Yang Yuanyuan, director general of CAAC, told local media that CAAC is reducing the numbers of cities that required approval for new routes. Currently those cities have been narrowed to 10 from the original 20.
“Our target is to reduce this number to zero by 2010, when all the domestic routes should be open to Chinese carriers without formal approval from CAAC,” Yang said.
However, analysts say that despite the relaxed control by CAAC, airlines will continue to face hurdles to entry due to severe slot shortages at the popular city airports such as Beijing, Shanghai and Guangzhou.
Since last October, on an experimental basis, CAAC has permitted domestic airlines to set up bases in Wuhan to operate routes between Wuhan and all the other cities.
Wang Changshun, vice director general of CAAC, disclosed that China would build 186 airports by 2010 and another 700 airports will be expanded and renovated.
Ian Jarrett
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