China is going to make it easier for enterprises, either state or privately owned, to invest in its fast-rising aviation industry starting on January 19.
However, it would still keep the state’s control over key airlines and airports in sensitive regions.
China is considered to be the world’s fastest growing aviation market. According to the International Air Transport Association, the Asian powerhouse is expected to surpass the United States as the world’s biggest aviation market from 2022.
On its website, the Civil Aviation Administration of China (CAAC) said that new regulations would let state and private companies to independently or jointly make investments from to spark the industry’s development further.
However, there would still be limitations to the said rules and certain entities still had to be placed in the hands of state-owned shareholders.
These included the country’s three largest airlines – Air China, China Eastern Airlines and China Southern Airlines – and specific airports in certain hub cities and western Xinjiang and Tibet regions.
It said that airlines could not own more than a 25% share in international and regional airports, while airports meanwhile, could not control over 25% of companies that are involved in the sale, storage and transport of aviation fuel.
The Chinese government has vowed to let private investors to take a more active role in more sectors in a bid to make companies more competitive on a global scale.
The CAAC said it first started examining the prospect of allowing more private investment in aviation way back in 2005.