WHEN MANY BECOME ONE – THE POLYGAMOUS ROAD AHEAD FOR
PRC CARRIERS
By Cheryl Guan
Over the last decade, PRC carriers have consolidated
around three main carriers. This trend looks likely to continue.
This article tracks the historical backdrop, and sets the stage for
a subsequent discussion on anti competition issues.
In July 2000, the all-powerful General Administration of Civil
Aviation of China (CAAC) ordered the top ten airlines in its fold
to consolidate into three airline groups around Air China, China
Southern Airlines and China Eastern Airlines.
Other than to prepare for full entry into the World Trade
Organisation, the consolidation of PRC carriers was chiefly to
streamline airline operations and to improve the overall
competitiveness of the PRC aviation industry.
