China will not approve further aircraft acquisitions in 2005

Airline Industry Information, Dec 31, 2004

AIRLINE INDUSTRY INFORMATION-(C)1997-2004 M2 COMMUNICATIONS LTD

China has said that no new commercial aircraft purchases will be approved in 2005 because of an effort to cool down the "overheated" growth in the industry.

According to Yang Yuanyuan, director general of the General Administration of Civil Aviation of China, there is overheating in the sector as well as an uncontrolled capacity expansion by domestic airlines, and domestic airlines have reportedly ordered enough aircraft to cover the needs for 2005. Apparently, there have been acquisitions of a total of 147 aircraft that are to be delivered in 2005, according to comments published on the website of CAAC News, a newspaper run by the aviation agency, Reuters said.

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