Industrial reform and air transport development in China

Abstract

This article describes the regulatory and enterprise reform in the Chinese airline industry and its impact on the industry’s tremendous growth in recent years. It starts with a brief description of China’s general economic and industrial reform, followed by a detailed description of reforms in the air transport sector. It then examines the impact of the reform on the growth and development of China’s airline industry. In particular, the following aspects of the industry are discussed: air traffic growth and route development, market structure, and airline operation and competition. Lessons are also drawn for general enterprise and industry reforms in the (former) centrally planned economies.