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Domestic Airlines Not Allowed to Invest Over 25 Pct in Airports
Domestic airlines companies will be allowed to invest no more than 25 percent in airports in line with a new regulation being formulated, said a source with the General Administration of Civil Administration of China (CAAC) Friday.

China encourages and supports airports to draw investment from at home and overseas, including social and banking capital, in order to increase their profit-making capability, said Zhang Guanghui, an official with the General Administration of Civil Aviation of China.

Airports in Beijing, Shanghai, Guangzhou, Shenzhen and Xiamen have already become listed companies.

Zhang said that all airports, except those in Beijing and Tibet, are expected to be turned over to and managed by local governments by the end of this year.

In recent years, China has made plans to build some new airports in its central and western regions, in an effort to cope with the growing needs for economic development and travel in the areas.

(Xinhua News Agency May 10, 2003)

Airlines See US$10b Losses
Airline Buys Second Airport
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