China Airlines and rival Taiwan carrier Eva will pick up much of the passenger count.
China Airlines, Thai Airways, Cathay Pacific and Dragonair have all cancelled routes or reduced their frequency.
"All of us department heads are on probation around here, " whispers a supervisor at China Airlines (CAL).
In Shanghai, China Eastern Airlines fell 3.3%, Air China lost 3.2% and China Southern Airlines dropped 4.5%.
Singapore Airlines may also invest in China Airlines in Taiwan, an alliance that would improve its trans-Pacific services.
"Politically, the new president and the vice president of Taiwan have very strong feelings about China Airlines, " says Eckes.
Relatives are demanding harsh punishment of China Airlines, which has had four fatal crashes in the past eight years.
Newly appointed chairman Lee Yun-ling left China Airlines after 24 years to head domestic airline Far East Transport, which is 25%-owned by the American International Group.
Qantas said China Eastern Airlines is China's second largest airline in terms of passengers carried.
Based in Shanghai, China Eastern Airlines (CEA, 36) is China's third-largest airline.
China Eastern Airlines rose 1.7%, Air China gained 1.9%, and Cathay Pacific Airways added 3.5%.
A. students are being funded by state firms like China Non-Ferrous Metal Industry and China Eastern Airlines.
Australia's Qantas Group and China Eastern Airlines have agreed to launch a new budget carrier for the Chinese market.
China Eastern Airlines, the Shanghai-based carrier, just announced the order of 60 A320s from Airbus with delivery from 2014 to 2017.
Hong Kong health officials said a patient who is being treated there arrived from Mexico on a China Eastern Airlines flight that stopped in Shanghai.
CNN: Confirmed number of global swine flu cases: 367 and counting
The carrier said late on Monday that it had signed a preliminary cargo joint-venture agreement with China Southern Airlines, a stepping stone into the Asian market.
It has partnerships with Air Berlin, Air Seychelles and Virgin Australia, but also signed codeshare deals this quarter with Aer Lingus and China Eastern Airlines.
On March 28th, China Eastern Airlines was due to fly into Delhi from Beijing, inaugurating the first ever direct air link between the world's two largest countries.
But China is likely to be cautious in granting Cathay additional flights given opposition from home carriers including Shanghai-based China Eastern Airlines as the fragmented Chinese airline industry consolidates.
The China Daily reported that China Eastern Airlines said it got a sizable discount on the 737s because it was such a large order, and were paying less than the list price.
FORBES: Chinese Airline Cancels Boeing Dreamliner Order; Airbus Not Spared
"We expect our government will work out some measures to help domestic carriers as other governments have done, because it is a global issue, " said Su Liang, speaking for China Southern Airlines.
"We see tremendous potential for the Qantas Group in Asia and we are looking forward to working more closely with China Eastern Airlines to deliver on it, " Alan Joyce, Qantas' chief executive officer said.
Among foreign airlines looking to boost their business with China, Delta Airlines of the U.S. plans to launch a Shanghai-Seattle route in June.
FORBES: China's Overseas Travel Rose By 16% In 1st Qtr; Visitors To Country Fell
In Asia, China's airlines fly relatively few international routes, which limits their exposure to the "war risks" cover which is proving to be the sticking point for aviation insurance.
Beijing (CNN) -- When I first came to China 39 years ago, airlines distributed cigarettes free of charge during flights.
应用推荐