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Approach to Accelerating Development of China's Regional Airlines and Policy Options (Special Issue No 43, 2015)


By Liu Tao & Li Jianwei, Research Team on "Development Strategy for China's Small and Medium-Sized Cities' Accessibility and Regional Aviation", Research Department of Social Development, DRC

Research Report Special Issue No 43, 2015 (Total 1446)


In the near future, a strategic task for making China strong through civil aviation is to improve aviation accessibility and further accelerate development of regional airlines. Efforts should be made to bring into full play the decisive role of market in resource allocation, offer to regional airlines equal development opportunities and more right for self-management, optimize governmental governance model and innovate management institutional mechanism. At the same time, more endeavors are needed to develop transfer services, tap airline network effects and cultivate a healthy ecosystem for civil aviation. Meanwhile, we should speed up construction of a hub-spokes airline network system based on the combination of trunk and regional airlines with adequate and distinct hierarchical functions, and relying upon the leading role of hub airlines. Policy options are provided as follows: promote construction and layout of targeted regional airlines in small and medium-sized cities; further loosen control over airline market; increase fiscal and financial support for regional airline development; promote capacity for sustained development of regional airline companies; and encourage cooperation between local governments and airline companies.