China relaxes control on domestic investment in civil aviation
China has relaxed controls on domestic investment in the country’s civil aviation industry, in a bid to promote and enhance its development.
Under the revision, state-owned and non-state-owned investment entitles may individually or jointly invest in the civil aviation industry.
It also has some rules for investments among those in the civil aviation industry. Industry players can only invest up to 5% in an airline, except for when it is an all-cargo operator. An airline shall also hold no more than 25% of an international or regional hub airport and their terminals. Commercial airports should also hold no more than a 25% stake in a fuel supplier operating at the airport.
The revision however states that companies that require “special management” shall remain majority state-owned. These include the three state-owned carriers, and hub airports in all provinces.
The changes will come into effect on 19 January.