China's civil aviation authority will allow competition in the air travel industry and gradually ease controls on airfares, a senior official said Tuesday.

Yang Yuanyuan, director-general of the General Administration of Civil Aviation of China (CAAC), said it would open air routes to competition as part of reform measures in 2004.

Yang was speaking at a national working conference on the civil aviation industry in Beijing.

The CAAC has allowed certain discounts but airlines are still not allowed to set airfares themselves.

Meanwhile, Yang said market access would be broadened and private investors would be allowed to enter the sector by establishing new enterprises or buying shares in existing companies.

Both international and domestic capital would be encouraged to enter China's civil aviation industry, Yang said.

In the past year, the country's civil aviation industry revenue was 108.6 billion yuan (US$13 billion), up marginally over the previous year although heavy losses were felt during April and June due to SARS.
 
(Shenzhen Daily December 24, 2003)