CAPA > Aviation Analysis > China civil aviation regulator says too early for Big-3 airline mergers - Xinhua

"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.

In September China National Aviation Holding Co, which controls Air China, cancelled a joint bid with Cathay Pacific Airways Ltd to take a stake in China Eastern Airlines.

---

You may also be interested in the following articles...

• New routes to China to flourish in the next few years
  23-May-2012

  China's leading airports are on the cusp of strong international growth, with several new routes to be launched in the coming 12 to 24 months. Growth will be driven by foreign and local needs: countries will have greater needs to further link with China while locally there will be an increasing propensity to travel among the Chinese population as incomes rise, while high-speed rail expansion will push Chinese airlines to grow internationally, at the same time providing feed opportunities for foreign carriers at the main Chinese gateways.

  But growth is not only expected at the main Chinese hubs. Second tier airports can also look forward to increasing air services as the Government supports expansion from these hubs and as the LCC revolution takes hold in North Asia. New carriers across the region will be looking for new route opportunities, fuelling rapid growth at non-congested Chinese gateways. China's own second tier airlines are also looking to expand abroad, mainly within the Asia Pacific region, which will spur development at the provincial capitals across China's vast interior and economic zones.

• More subdued outlook for China in short term but some mighty changes afoot
  18-Apr-2012

  The year of the dragon, 2012, is typically the mightiest of the Chinese signs, symbolising dominance and ambition; consequently this should be a time for making a large leap forward. However, indicators and performance in the first few months of 2012 suggest a more subdued outlook, at least on the surface with recent commentary coming out of China revealing a tone of caution and concern, a foreboding situation given the previous robustness of demand in the country. Yet below the surface, there are indeed some mighty changes afoot. Liberalisation and economic growth are laying the foundation for a rapid acceleration, for aviation overall, but more particularly for a new generation of airlines, most of which did not exist a decade ago.