China: Beijing to lower ownership stakes in Chinese airlines

The Chinese government said it will loosen its control over China’s big three carriers—China Southern Airlines, Air China and China Eastern Airlines—allowing its ownership stakes in the airlines to fall below 50%. Currently, state-owned company China National Aviation Holding Co. holds a 53.5% stake in Air China, state-owned China Eastern Group holds a 56.4% stake in China Eastern and state-owned China Southern Group holds a 52% stake in China Southern. Industry analysts in China speculated that the new regulation will allow China’s big three carriers to be just 40%-state owned, enabling a more mixed ownership structure in which outside investors take stakes in Chinese airlines.<br/>