China to maintain 3 major airlines - report
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Thursday, 18 October 2007 |
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Beijing (XFN-ASIA) - China believes the current setup of three
major airlines is "fine" given the current state of the industry,
the Wall Street Journal reported, citing the aviation regulator.
"We believe it would be fine to maintain three major carriers
based on the situation of the airline industry," said Yang Yuanyuan, minister
of the General Administration of Civil Aviation of China, on the sidelines of
the 17th Communist Party Congress.
The remarks come amid speculation of M&A activity among
the big three - Air China, China Southern Airlines and China Eastern Airlines.
The three major airline groups 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. |
