Foreign Investment to Chinese Civil Airports & Airlines Possible

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Last updated at: (Beijing Time) Wednesday, June 05, 2002

Foreign Investment to Chinese Civil Airports & Airlines Possible

For speeding up the development of China's civil aviation industry it is required to expand the channel for using foreign capital, stepping up the solicitation of direct foreign investment and cooperation with moderate rein given to the restriction on the direct foreign investment in China's civil airports and airlines.

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Foreign investors will soon find it easier to channel their money into China's aviation industry, official sources said.

According to the News of Jun 4, 2002 from Shanghai, "for speeding up the development of China's civil aviation industry it is required to expand the channel for using foreign capital, stepping up the solicitation of direct foreign investment and cooperation with moderate rein given to the restriction on the direct foreign investment in China's civil airports and airlines.

And it is also necessary to set up diversified channels for flexible financing and encourage the airports and airlines of matured conditions to use foreign capital directly and to list in overseas stock market." This was made known in morning by Bao Peide, deputy director of Civil Aviation Administration of China (CAAC) at the 58th Annual Meeting of the International Aviation Traffic Association (IATA).

On entering into the new century, CAAC has witnessed a fine potential of development, said Bao Peide. To date, CAAC has a fleet of 577 aircraft, operated on more than 1100 air-routes of which over 130 are international airway with a total air-mileage of 1.5536 million kilometers.

Reformation ahead

CAAC is right now in the course of reorganization and reformation, which will help step up the marketization process of the enterprises under the CAAC. In expectation of a new boom the CAAC is going to draw in fund for construction by way of using foreign capital, especially via direct foreign investment and cooperation.

So far we've witnessed achievements made on a nationwide scale in promoting the localized administration and management of airports, Bao said.

And after the reformation it will be helpful to bring the local initiative into play and therefore, to speed up the airports construction by setting up a multiple system of investment and financing.

In the solicitation of foreign capital, the emphasis is to be laid on the civil aviation infrastructure construction, technical progress and standardized management, strengthening the security facilities for air-transportation, newly establishing and enlarging the computerized information system, settlement, reservation and departure systems as well as setting up a global distribution system and e-business platform, etc.

The air-traffic control will be fully put under radar control instead of the programmed one. The restriction will be loosened on the airports and airlines to use directly the foreign capital and encourage those of matured conditions to use foreign capital directly and to list in overseas stock market.

By People's Daily Online

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