China has approved preparations for establishing two more private airlines, a spokesperson with the General Administration of Civil Aviation of China (CAAC) said on Wednesday. The preparations for Chunqiu Airlines and Ao'kai Airlines were approved on May 26.

On February 10 this year, the CAAC approved preparations for establishing the country's first private airline, E & Net Airlines.

Chunqiu Airlines, to be set up by Shanghai Chunqiu International Travel Services and Shanghai Chunqiu Chartered Flight Travel Services, will mainly engage in chartered flight and regional airline business from the Shanghai Hongqiao International Airport.

Ao'kai Airlines, to be established by Xinjiang Zhongjing Qili Investment, Ao'kai Investment Development and Beijing Qili Logistics, will primarily engage in domestic cargo transportation, logistics and chartered flights from Tianjin.

Preparations for the two companies will be completed in two years. Both will be required to complete 15 procedures, including aircraft leasing or purchasing applications and aircraft registrations.

Earlier, CAAC Director Yang Yuanyuan said the CAAC would vigorously broaden the reform and opening of the country’s civil aviation industry to meet growing demand and impending competition from foreign airlines in China. The opening of the market is in accordance with the nation’s commitments to the World Trade Organization.

Last year, revenue in the civil aviation industry totaled 108.6 billion yuan (US$13.0 billion), up only marginally from 2002 largely because of heavy losses in the SARS-hit April- June period.

In 2004 passenger transport capacity is expected to total 103 million while cargo transport reaches 2.5 million tons, up 20 and 18 percent, respectively, year on year.

(China Daily June 9, 2004)