The Chinese Civil Aviation Administration says that mainland Chinese airlines are not allowed to purchase additional aircraft, and it is suspending approval for the opening of new airlines to avoid surplus transportation capacity in the mainland Chinese civil aviation market.
According to the Hong Kong local media, the total losses made by the mainland Chinese aviation industry in the first ten months of 2008 was CNY4.2 billion. This is due to the global financial crisis and the depressed tourism market.
Liu Shaocheng from the CAAC, told local media that it is estimated that the globally slowing economic growth would slow the development of civil aviation market in mainland China over the next two or three years, so CAAC has decided to stop the approval for new aircraft purchases and the opening of new airlines.
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