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The CAAC has urged the 10 airlines under its control to merge into three carrier groups under China Southern, China Eastern and unlisted Air China in a bid to boost competitiveness.
BBC: China flies with Boeing
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In the late 1980s the government created three gigantic carriers Air China, China Eastern, and China Southern to provide competition and service where there had previously been none.
ECONOMIST: The opening up of China��s economy goes into reverse
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The Boeing planes are intended for flag carrier Air China, China Eastern and China Southern which last month said it intended to acquire 20 Boeing 737-800s pending government approval.
BBC: China flies with Boeing
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China Eastern Airlines rose 1.7%, Air China gained 1.9%, and Cathay Pacific Airways added 3.5%.
WSJ: Asian Shares Rise
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In Shanghai, China Eastern Airlines fell 3.3%, Air China lost 3.2% and China Southern Airlines dropped 4.5%.
WSJ: Latest Euro Hope Helps Asia Markets
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By 2006, eight private carriers had sprung up to challenge the three state-controlled majors, Air China, China Southern and China Eastern.
FORBES: China State Enterprises Advance, Private Sector Retreats
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China Eastern is likely to have over half the passenger air-travel market in its home city after it completes a planned merger with Shanghai Air.
FORBES: Air China Leads Cathay Into Shanghai
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They did somewhat better in Hong Kong, with China Eastern ending flat, China Southern losing 1.2% and Air China managing a 0.8% gain.
WSJ: Latest Euro Hope Helps Asia Markets
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By contrast, China Eastern has 70% of its capacity deployed in the domestic market, while Air China has 65%.
WSJ: Bird Flu Worries Sink Airline Shares
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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.
ECONOMIST: India and China
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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.
FORBES: Etihad Airways And The 'New' Middle East