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Air China boss: foreign airlines endanger Chinese counterparts
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The Chinese civil aviation industry is in danger as foreign airlines penetrate the Chinese aviation market, Li Jiaxiang, President of Air China, said during the launch of his new book.

In Li's opinion, Chinese airlines are gradually being marginalized as their presence weakens. Currently they have 18 percent of the Chinese cargo freight market but their foreign counterparts hold 82 percent. In addition, the former has less than 44 percent of the Chinese passenger transport market while the latter has approximately 56 percent.

In Li's new book, he notes that as foreign airlines buy into Chinese aviation companies, the domestic market gets increasingly more funds for growth; but the former latches onto Chinese aviation market share decisively. He also warns that with their large presence in Chinese aviation markets, foreign airlines will make it much more difficult for Chinese airlines to undertake strategic moves, such as restructuring, because they will protect their own best interests and block such threatening moves.

For more details, please read the full story in Chinese. (http://www.china-cbn.com/s/n/000004/20070924/020000056258.shtml)

(China.org.cn September 24, 2007)

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