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ARTICLE · 02 MARCH 2011

When Many Become One – The Polygamous Road Ahead For PRC Carriers

Barlow Lyde & Gilbert LLP
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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.

United KingdomTransport
Cheryl Guan
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.

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