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Wednesday, August 09, 2000, updated at 18:26(GMT+8)
Business  

Three Largest Airlines to Break Away from CAAC

The country's three largest airlines will break away from the direct control of Civil Aviation Administration of China (CAAC) after the air transport restructuring finished, according to official sources, Chinadaily reported Wednesday.

Beginning this year, CAAC officially launched the air transport restructuring, which planned to merge the ten CAAC-controlled airlines into three airline groups -- Air China, China Southern Airline and China Eastern Airline.

After the restructuring, the three groups will still receive CAAC's supervision, but CAAC can not interfere in their business operation.

According to an airline official, domestic airlines could not develop rapidly in the past just because the government controlled their business operation, including pricing policies, recruitment, payment system, personnel appointment and removal.

The official affirmed that the three airlines welcome the decision to let the airline groups break away from CAAC, adding they will enjoy more freedom and run their business in accordance with the Corporate Law of the PRC so as to better meet market demands.




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The country's three largest airlines will break away from the direct control of Civil Aviation Administration of China (CAAC) after the air transport restructuring finished, according to official sources.

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