ABSTRACT
This chapter examines the influence of larger macro-issues currently driving the totality of economic and social reform as background to the increasingly detailed specification by government of the developing role of air transport as an important economic and political agent, with civil aviation industry in central focus. The regional and trunk carriers remained under close supervision by the Civil Aviation administration of China (CAAC) with regard to service provisions, market entry, route entry, service frequency and ticket pricing. The absence of the railroads from the amalgamation process has led to some comment, which would indicate as noted earlier that it has been able to resist the reform process to date. On the other hand an important member of the expert team that drafted the new proposals, made a public statement in which Wang suggested that the railways lag considerably behind the other transport sectors in matters relating to administrative reforms.
