Zhao Jian, a transport professor at the Beijing Jiaotong University, said the CAAC should also relax control and allow more budget and regional airlines to operate, besides welcoming more private airlines in the competition.

The price of air tickets is still too high for a section of the public because the major players in the market are State-owned, he added.

China, Eu join hands

China and the European Union have agreed to jointly pursue financed research focused on sharing and developing technologies for cleaner, less polluting and safer aircraft.

The research will initially involve three main projects with budgets totaling 70.5 million yuan ($10.5 million), to be shared by the European Commission and China's Ministry of Industry and Information Technology (MIIT).

The plan, announced on Thursday at the Shanghai Expo's aviation pavilion, reflects China's growing importance as an aircraft manufacturer and Europe's keenness to remain a leading player in the huge Chinese market.

"We believe it's our mission to develop cleaner, safer and more comfortable air transport," Li Benjian, an MIIT official, said.