Liu Shaoyong, chairman of China Eastern Airlines, and seen in our picture, was reported in CargoNews Asia as saying China should set up a state-owned company which will then hold stakes in its three biggest carriers to improve their synergies and global competitiveness.
China Eastern Airlines, China Southern Airlines and Air China are the country’s three biggest carriers. All have warned of losses for 2008 largely due to slowing air traffic demand amid the global economic slowdown.
Liu Shaoyong said, ‘The big three are competing fiercely with each other and yet they are all controlled by the same boss SASAC. That is a huge waste of resources.’
He was referring to the State-owned Assets Supervision and Administration Commission (SASAC), the ultimate owner of all Chinese state firms.
Liu said he had submitted a proposal to the government in March 2008, but any drastic industry restructuring was unlikely in the near term.
He said, ‘Personally, I think the current industry structure will remain intact for quite some time as the government currently needs to handle unexpected situations.’