Regulator: Airlines must collaborate to cut costs
23 June 2008
The Civil Aviation Administration of China (CAAC) said Chinese airlines must collaborate to cut costs arising from higher fuel prices, Bloomberg reported. Jet fuel prices were hiked 25% on Friday and Chinese airlines are already facing lower demand for air travel. The head of the CAAC, Li Jiaxiang, has in the past called for the creation of a "super carrier" to compete against foreign airlines. Analysts said this idea could be the only solution for Chinese airlines in the current situation. China's three biggest carriers - China Southern, Air China and China Eastern - are all indirectly controlled by the government. An offer by Air China's parent company to buy a stake in China Eastern was rejected in January.