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Chinese airlines: numbers not profits

Overview

China has the world's fastest-growing airline industry, but the market is constrained by the regulatory system. While the aviation minister wants to press on with completing deregulation by 2010, the main administrative body is cautious. Its grip on costs and ticket pricing has the twin effect of restraining competition and reducing opportunities for profitability. Liberalisation should change this in line with fast-growing demand for passenger travel and freight, but the timing...

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