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

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

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

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