Chinese aviation has soared in the past 30 years of economic reform, advancing 35 places to become the world's second-largest market.
The rapid takeoff started with an instruction from the late leader Deng Xiaoping: "The civil aviation industry must be commercialized."
Shortly thereafter, China's first foreign-invested firm -the Beijing Aviation Food Co Ltd - was formed.
"I decided to seek business opportunities in Beijing in 1978 after hearing Deng Xiaoping say China welcomes foreign investors," said Wu Suk-ching, vice chairman of the company.
"I noticed that China and the United States would resume direct flights in 1981 and a single journey would take 30 hours, which meant aviation food was a necessity," said the Hong Kong businesswoman.
That realization was the start of the air catering company, as well as the start of the industry's opening up to foreign investors.
Now the company is capable of providing 80,000 meals daily for nearly 400 flights operated by more than 50 carriers.
The Civil Aviation Administration of China issued rules in 1994 that allowed foreign companies to invest in all sectors of the industry, including airports and airlines, except the air traffic management sector. But foreign investors could hold no more than a total 35-percent stake in a single domestic carrier.
In 2002, the regulator revised the rule so that a single foreign investor could hold no more than a 25-percent stake in a venture and that Chinese investors must own a controlling stake.
The widened investment scope helped the domestic aviation industry enter a new stage. Several foreign-invested cargo airlines were established, including Singapore-invested Great Wall Airlines, German-invested Jade Cargo International Co Ltd and Shanghai Airlines Cargo Intl Co Ltd.
The loosened rules have helped the industry attract more than US$30 billion in foreign investment.
Hainan Airlines, the country's fourth-largest carrier, led the way. In 1995, the carrier sold more than 100 million shares worth US$25 million to US billionaire George Soros to become the country's first foreign-invested carrier.
In 1997, it was the first domestic carrier to sell hard-currency B shares on the Shanghai Stock Exchange, raising 277 million yuan (US$40.55 million). The airline has since grown into a comprehensive group that owns 30 billion yuan in assets.
When China opened its skies to overseas carriers in 2004, domestic airlines faced fiercer competition and gradually realized the importance of joining forces with overseas counterparts in air alliances.
China Southern Airlines, the country's biggest carrier by fleet size, joined SkyTeam in 2007, while Air China and Shanghai Airlines joined the Star Alliance in the same year to strengthen their international networks and upgrade services for travelers.
"A carrier can't achieve permanent success by itself when the competition becomes stronger and costs keep climbing, so we must insist on alliance development to integrate our strength," said Li Jiaxiang, the director of the CAAC and former chairman of Air China.
