Airlines in China, connections, connectivity and competition

[eng] Chinas aviation market, unlike any other, has some unique characteristics, from how deregulation and government policies shaped and developed the industry in its early stages under a communist regime to the evolution and distribution of their airport network, the route connections and the competition among national and foreign carriers. With Chinas economic reform in 1978 and the start of air deregulation in the country, China decided to gradually open up their aviation market to foreign investment and to the rest of the world. Their unique geographical and demographic characteristics would then start shaping their ever since growing airport network and their connectivity characteristics, shaping the whole system in a unique and imbalanced way. With globalization knocking on the door and the popularization of air travel, competition between private and public airlines increased, forcing huge mergers and strengthening the “big three”. With the allowance of foreign investment, further regulation was introduced to protect national carriers, but competition remains fierce to this day. Right now, with the industry being the second biggest one in the world, behind the US in terms of size and number of seats, but not nearly as efficient, fair or convenient for consumers as their competition, the question arises whether the Chinese government will be able to cope with all the challenges the industry is facing like market liberalisation, improving route connectivity, adapting airport quality and capacity to demand and national and international competition