China Civil Aviation Roots And Route Of Deregulation

This paper examines the issue of economic deregulation of civil aviation in China. As part of the infrastructure, civil aviation has been under heavy government regulations, such as entry regulation, price regulation, for a long time. Aviation deregulation means that civil aviation administration loosens or cancels part or all regulation terms. The purpose of deregulation is to promote competition, increase efficiency, allocate resource more reasonably and maximize welfare of society.Nowadays, civil aviation deregulation is a tide around the world. Many governments deregulated or are deregulating their civil aviation. This paper introduces the history and reasons of civil aviation regulation. It describes the global civil aviation deregulation movement, and discusses its reasons and effects. Due to the failure of regulation, the demand of the treaty of WTO, the economic and administrative reform, etc, the paper points out it is necessary for China to deregulate its civil aviation. Since civil aviation is not a natural monopoly, and China has made great progress in marketing reform, civil aviation deregulation in China is feasible too. In particular, this paper discusses the paths of china's of civil aviation deregulation, including deregulate admittance of trade, price, flight course, investment and other regulation terms. In order to deregulate civil aviation successfully, this paper suggests China's government also need to separate the business of administration and enterprises completely, push property right reform and amend anti-trust laws.