Preparing for China's Entry to the WTO: China's Airline Industry

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Case

Reference no. 202-008-1

Subject category: Economics, Politics and Business Environment

Authors: Zhigang Tao (HKU Business School, The University of Hong Kong); Sang Xu (HKU Business School, The University of Hong Kong); Pauline Ng (HKU Business School, The University of Hong Kong)

Published by: Asia Case Research Centre, The University of Hong Kong

Originally published in: 2002

Version: 2 January 2002

Length: 11 pages

Data source: Published sources

Share a link: https://casecent.re/p/21395

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Abstract

On 27 April, 2001, the Civil Aviation Administration of China (CAAC) announced the merger of nine airlines under its direct administration into three giants known as China Southern Airlines Group, China Eastern Airlines Group and Air China Group. By consolidating the airline industry in China, the CAAC intends to help the domestic airlines to gain competitiveness towards an open market in preparation for China''s imminent entry to the WTO. The case examines the WTO impact on China''s airline industry and the appropriateness of the CAAC''s decision to reform China''s airline industry through consolidation. The students are encouraged to recommend alternative strategies to reform China''s airline industry.