CHINA IS PASSING the point of no return in liberalising its air regime. Air service agreements sealed during the past two years are a shout to the world that the dormant dragon has stepped out of the cave of protectionism.
After the breakthrough of opening the domestic cargo market to foreign carriers by allowing them to pick up freight in Shanghai, Nanjing and Xiamen, the General Administration for Civil Aviation of China (CAAC) has set the timetable to open its passenger market.
An air service agreement signed with the United States in July raised the eyebrows of many as it increases the number of passenger and cargo flights from 54 to 249 a week by 2010. Of these, 111 will be cargo flights.
Under the agreement, US airlines - the dominant players in the world - are even allowed to set up cargo hubs on the mainland, meaning they can move cargo from the mainland to other Asian destinations without touching base in the US.
'China launched an aggressive liberalisation programme,' said Derek Sadubin, a Sydney-based consultant with the Centre for Asia Aviation.
'It shifted from the fairly conservative stance to going to the forefront, taking up the leadership role in the Asia Pacific. It is having a spillover effect in Southeast Asia.
