Civil Aviation Administration of China, Provisions for Domestic Investment in the Civil Aviation Industry (Trial Implementation)

Promulgated: July 15 2005
Effective: August 15 2005
Applicability: The term 'domestic investment entities' covers state-owned investment entities and non-state-owned investment entities (collective enterprises, private enterprises, and other non state-owned economic organizations and individuals) (Article 3). The scope of the civil aviation industry shall cover: (1) public air transport; (2) general aviation; (3) civilian airports, including civil transport airports and general aviation airports; (4) air traffic management systems; and (5) projects related to civil aviation, including sale, storage, transport and replenishment of aviation fuel, aircraft maintenance and repair, transport and warehousing of cargoes, ground services, provision of air catering service, parking lots, sales agency for passengers and goods, computer reservation system service, aviation accounting and other related projects.

Main contents: Article 2 states that investment in the civil aviation industry by domestic investment entities is encouraged and supported (Article 2). State-owned investment entities and non state-owned investment entities may independently or jointly invest in the civil aviation industry, unless provided otherwise in the Provisions (Article 5). Air China Limited, China Eastern Airlines Corporation Limited, China Southern Airlines Company Limited and the airports in places where the governments of the provinces, autonomous regions, municipalities directly under the central government are located, and in Shenzhen, Xiamen, Dalian, Guilin, Shantou, Qingdao, Zhuhai, Wenzhou and Ningbo shall remain as state-owned or state-controlled (Article 6). Where a civil transport airport in which investment is restricted (as specified in Appendix III) invests in enterprises engaging in the sale, storage, transport and replenishment of aviation fuel and their facilities within the airport itself, the investment proportion may not exceed 25% and no relative controlling stake may be held. For airports in which investment is restricted, where there is only one enterprise engaging in the sale, storage, transport and replenishment of aviation fuel in an airport, the investment proportion of a common air carrier and its affiliates in such enterprise and its facilities may not exceed 25% and no relative controlling stake may be held. Where an enterprise engaging in the sale, storage, transport and replenishment of aviation fuel already exists in such airport, the investment in and establishment of, or the equity participation by, a common air carrier and its affiliates in other aviation fuel enterprises shall not be subject to the restriction on investment proportion (Article 10). Article 11 states that air traffic management systems are mainly invested by the central government.
Repealed legislation: Transmission of the Reply Letter to Policies Relevant to Domestic Investment and Engagement in the Civil Aviation Industry, Jun 24 1993 and Tentative Measures for the Administration of Domestic Air Carriers Investing in Civilian Airports, May 22 1998