The Civil Aviation Administration of China (CAAC) said Chinese airlines must collaborate to cut costs arising from higher fuel prices, Bloomberg reported. Jet fuel prices were hiked 25% on Friday and Chinese airlines are already facing lower demand for air travel. The head of the CAAC, Li Jiaxiang, has in the past called for the creation of a "super carrier" to compete against foreign airlines. Analysts said this idea could be the only solution for Chinese airlines in the current situation. China’s three biggest carriers – China Southern, Air China and China Eastern – are all indirectly controlled by the government. An offer by Air China’s parent company to buy a stake in China Eastern was rejected in January.