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Caac Airline Regroupings - Some Questions

Sat Aug 24, 2002 11:34 am

Hi there

I don't believe this has been discussed recently, and I would like a bit more info.

China's CAAC plans to regroup 10 airlines (I believe thats the figure) into a 'Big 3' - Air China, China Eastern and China Southern. I have a few things to ask:

- Which airlines are being grouped with who?
- What will fleet composition and route networks of the 'Big 3' be?
- Is it the CAAC's intention to have each of the 'Big 3' in one of the big 3 global alliances (Presumably Air China in Star, China Eastern in oneWorld, and China Southern in SkyTeam)?
- To what extent will CAAC hold control in each of the 'Big 3'? How much does it actually hold in airlines today?
- What airlines will there be in China other than these 'Big 3'?

Thanks for any info that can be offered (or links to relevant sites/discussions)

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RE: Caac Airline Regroupings - Some Questions

Sat Aug 24, 2002 6:14 pm

1. In fact, CAAC only plans to regroup 9 carriers into three airline groups, details are Air China (with China Southwest and China National Aviation Corp Zhejiang Airlines, also well-known as CNAC Zhejiang Airlines); China Eastern (with China Northwest and China Yunnan Airlines) and China Southern (with China Northern and Xinjiang Airlines).

2. Fleet for new Air China and China Eastern will be somewhere about 120 and China Southern will have a fleet of 180 jets. In the future, three airline groups can fly the networks which were operated by any of the ex-airlines in a particular group. For example, Air China will be able to fly on China Southwest and CNAC Zhejiang Airlines' routes as well and in fact, China Southwest is currently operated some former Air China's routes by using Air China's A340s.

3. Three airline groups will have their own rights to choose global alliances, but it seems that Air China is going to join Star, China Eastern will get closer with One World and China Southern may join SkyTeam.

4. Three nationwide airline groups are all state-owned, but CAAC and China's central government are now looking at the possibilities to sell off up to 49% of these airlines to privates and other companies, but government will have still to control them, because the government is likely to keep other 51% for ever.

5. There will be quite a few other airlines such as Shanghai Airlines, Hainan Airlines, Shenzhen Airlines etc.

I hope the information gives you some help.

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