CHINA CONSOLIDATES AIRLINES
China will merge 10 carriers into three major airline groups, according to a Chinese news agency.
Xinhua reported Friday that the new groups will be based on Air China, China Eastern Airlines and China Southern Airlines. The other seven airlines, China Southwest Airlines, China Northwest Airlines, China Northern Airlines, Xinjiang Airlines, Yunnan Airlines, Great Wall Airlines and Zhejiang Airlines, are under direct control of China's airline regulatory body, the Civil Aviation Administration.
The three airlines' assets would each total about $6 billion. The companies would be free to pick which group to join, Xinhua said.
The move is seen as a boost to China's aviation industry, as the world's largest nation prepares to enter into the World Trade Organization.