Private companies are about to speed up entering the country's huge civil aviation market.

Reliable sources said that Ao'kai Airlines, one of the country's first group of private companies approved by aviation authorities to prepare for entry to the market, is carrying out final procedure for approval.

"The company is expected to obtain the final airline operating certificate before the end of this year," the sources said.

But an official with the General Administration of Civil Aviation of China (CAAC) said it would still be some time before the company could start flying. The company would be required to complete 15 procedures including aircraft leasing or purchasing application and aircraft registration, the official said.

"Preparation will not take a short time," she said. "We have given the company two years for preparation." Ao'kai Airlines, together with Chunqiu Airlines, were approved for preparation on May 26.

The company, to be established by Xinjiang Zhongjing Qili Investment Co Ltd, Ao'kai Investment Development Co Ltd and Beijing Qili Logistics Co Ltd, will mainly engage in domestic cargo transportation, chartered flight from Tianjin and logistics businesses.

The Chunqiu Airlines, to be established by Shanghai Chunqiu International Travel Services Co Ltd and Shanghai Chunqiu Chartered Flight Travel Services Co Ltd, will engage in chartered flights and regional airline businesses from the Shanghai Hongqiao International Airport.

On February 10, the CAAC approved preparations for establishment the country's first private airline company, E & Net Airlines.

Experts say that Chinese private companies' increasing interest in the civil aviation market was partly due to the gradual opening of the sector to domestic and foreign investors.

The huge potential of the country's civil aviation market has also become a major attraction for private companies, an expert said.

CAAC Director Yang Yuanyuan said earlier the government was considering further opening the country's potentially huge aviation sector to private investment.

The CAAC would vigorously deepen reforms and opening-up of the country's civil aviation industry to meet growing demands and impending competition from foreign airlines, as the whole market was opening wider in accordance with its commitments to the World Trade Organization.

In the coming year, examination and approval procedures for domestic airline management would be streamlined so a fair and liberal administrative system could be established in line with market demand, Yang said.

Meanwhile, access will be broadened and investors will be allowed to enter the sector by establishing new enterprises or using their shares in existing companies. Both international and domestic capital will be encouraged to enter the aviation industry, Yang said.

(China Daily October 25, 2004)