China is set to continue its planned reforms in its civil aviation sector, despite recent air crashes in April and May involving two major Chinese airlines, senior government officials said.

"The reshuffling is to go on as scheduled," said Bao Peide, vice-minister of the General Administration of Civil Aviation of China (CAAC), which oversees the domestic airline industry.

However, Bao added that some reforms have been influenced by the accidents, which, he said, is understandable.

The CAAC has already presented its restructuring report to the State Council, targetting three large airline groups. It is unknown when the State Council will approve it, Bao said.

The vice-minister presented his update to world airline leaders at the 58th Annual General Meeting of the International Air Transport Association (IATA), which ended in Shanghai yesterday.

Echoing the international air transport community's remarks about their confidence in the fast-developing Chinese aviation industry, a special China session was arranged yesterday during the gathering, where various issues, including the large-scale restructuring, were discussed.

The long-discussed reshuffling mainly involves the merger of nine major State-owned domestic airlines into three groups, based on Beijing's Air China, Shanghai's China Eastern Airlines and Guangzhou's China Southern Airlines.

But Air China's jet crash in the Republic of Korea on April 15, followed by a plane crash on May 7 involving China Northern Airlines, which is planning to merge with China Southern Airlines, cast some doubt on the completion of the reform.

"We see the reform as an effective remedy to help domestic civil aviation enterprises sharpen their competitive edge to better adapt themselves to the market as well as looming foreign competition," said Bao. "So we shall definitely carry it through."

The future success of domestic airlines largely hinges on whether they can remain in business after the industry reforms, said Wang Changshun, president of China Southern Airlines.

Newly appointed director-general and chief executive officer of the IATA, Giovanni Bisignani, praised the reforms. Thirteen Chinese airlines have been members of the IATA.

"The Chinese authorities' policy to regroup those small air companies into three main ones is a positive approach," he said, adding that the move would make the aviation industry more efficient.

Chinese aviation authorities are also looking at intensifying air safety and security measures, including management improvement, implementation of inspections and safety evaluations, and adding advanced technologies, Bao said.

( China Daily June 5, 2002)