Airlines

The Civil Aviation Administration of China (CAAC), also called the General Administration of Civil Aviation of China, was established as a government agency in 1949 to operate China’s commercial air fleet. In 1988 CAAC’s operational fleet was transferred to new, semiautonomous airlines and has served since as a regulatory agency.

In 2002 the government merged the nine largest airlines into three regional groups based in Beijing, Shanghai, and Guangzhou, respectively: Air China, China Eastern Airlines, and China Southern Airlines, which operate most of China’s external flights.

By 2005 these three had been joined by six other major airlines: Hainan Airlines, Shanghai Airlines, Shandong Airlines, Xiamen Airlines, Shenzhen Airlines, and Sichuan Airlines. Together, these nine airlines had a combined fleet of some 860 aircraft, mostly Boeing from the United States and Airbus from France.

To meet growing demands for passenger and cargo capacity, in 2005 these airlines significantly expanded their fleets with orders placed for additional Boeing and Airbus aircraft expected to be delivered by 2010. In June 2006, it was announced that an Airbus A320 assembly plant would be built in the Binhai New Area of Tianjin, with the first aircraft to be delivered in 2008.

The total number of planes of all mainland Chinese carriers combined will be near 1,580 by 2010, up from 863 in 2006. By 2025, the figure is estimated to be 4,000.

The twenty seven airlines in the Chinese mainland handled 138 million passengers, and 22.17 million tons of cargo in 2005。