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CAAC Plans To Open Domestic Flight Operation Rights
June 1, 2007 |
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| Category: Industry News
The Civil Aviation Administration of China plans to open the domestic flight operation rights in three years to offer more freedom for airline companies.
According to the "Guide Opinion on Deepening Aviation Reform" that was issued by CAAC last year, reform will be done on domestic flight operations and all domestic flights will be managed through a registry system from the latter half of the 11th Five-year Plan period. That is to say, an airline company can apply for a line if it thinks it can make profit from the line and will be able to operate the line after a simple registration instead of the current complicated application procedure.
CAAC said that it may open the flights right by bidding, which means that the competition on hot lines will be even fiercer and some of the airports will be busier.
Some analysts quoted in local media say that the competition within the aviation market will be high after the operation rights are opened and China's domestic airlines' profit making capacity will decrease and the entire aviation industry may face a loss. But Chinese airlines must experience this difficult time sooner or later if they want to truly be strong within the market.
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