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(Xinhua)
Updated: 2008-01-06 09:37

Potential high-priced counter-offer by Air China's parent company to block China Eastern Airlines' (CEA) 24 percent stake sale to Singapore Airlines and Lentor Investments highlighted the country's alluring aviation market boom.

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Li Jiaxiang, new head of the General Administration of Civil Aviation, the industry regulator, has been longing for an alliance between Air China and CEA to gain more access to Shanghai market, a move to build the former into a "super carrier" to better vie with foreign rivals for larger market shares.

Li, former board chairman of flag carrier Air China, has said the local airlines are increasingly being marginalized as foreign rivals nibble into the cargo as well as passenger transport markets.

Following is a brief introduction to the fast growth of local airlines and growth prospect of the nation's aviation market:

Chinese airlines are set to post strong gains in net profits last year as more richer Chinese citizens take flights when traveling. Some made turn-around from earlier loss-making in 2006.

China Southern Airlines, the nation's largest carrier by fleet size, saw net profits soar to a record 3 billion yuan (US$411 million) this year from 306 million yuan in 2006.

In the first three quarters of 2007, Air China, the most-profitable airline, reported profits of 3.49 billion yuan and the smaller China Eastern earned profits of 1.04 billion yuan.

Boeing has predicted in September last year that China would buy another 3,400 planes in the following 20 years to meet the world's fastest growing passenger demand.