China will invest more than 1.5 billion yuan in aviation over the next five years and encourage mergers among airlines to increase their global competitiveness, state media reported Monday.
The Civil Aviation Administration of China states that the country is ready to introduce tax policies favoring the opening of new lines of passenger and cargo flights. Comparing with the global competitors, the three largest Chinese airlines, Air China, China Southern Airlines and China Eastern Airlines, are still too small.
China will also build more regional airports, especially in less developed western China.
The Chinese authorities had announced earlier this year the construction of more than 45 airports over the next five years, bringing the total to over 220. The fleet of Chinese airlines should double to 5,000 aircrafts by 2015.