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China's aviation market soars to No. 2 globally
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By the end of 2007, 2,869 weekly flights were operating on 290 routes linking China and 45 countries.

1980-1986

The industry, which was subordinate to the China Air Force, began commercial reforms. It was incorporated into the State Council and conducted a series of management reforms.

The reforms greatly improved the industry's performance. By the end of 1986, the country's passenger volume was 5.2 times more than in 1978, and cargo volume was up 3.5 times.

1987-1994

The structure of a modern aviation industry was formed.

The country set up six administration bureaus, in Shanghai, Beijing, Guangzhou, Chengdu, Xi'an and Shenyang, and established six local airlines.

During the period, the government loosened rules to allow local governments, domestic companies, individuals and foreign companies to invest in the aviation companies.

2002-2004

The country restructured, setting up three airline groups - Air China, China Eastern Airlines and China Southern Airlines - by merging nine airlines.

The three carriers were listed on domestic and overseas markets and ranked among the 20 biggest airlines in the world by passenger volume.

2005

Private companies were encouraged to enter the aviation industry, and the country抯 first private carrier, Okay Airways, was established in March.

2008

The industry conducted a new round of reform involving aviation administration departments. Domestic carriers experienced tough challenges this year, buffeted by the global financial turmoil, major snowstorms and the Sichuan earthquake. China Eastern Airlines has secured a 7-billion-yuan (US$1.02 billion) cash injection from the government, and China Southern has secured 3 billion yuan to repay loans. The market is filled with speculation that the government may merge China Eastern and Shanghai Airlines.

(Shanghai Daily December 31, 2008)

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