China To Relax The Control Of Civil Aviation,

Aviation industry is traditionally regarded as a natural monopoly industry. However, along with development of economics and technology, the industry becomes more and more competitive. Under the wave of deregulation or liberalization towards natural monopoly industries from the 1970s, many countries began to deregulate aviation industry. In 1980s, China became one of them.After more than 20 years, China made a great progress in deregulation of aviation industry: the efficiency has been improved and the scale has been enlarging. In 2006, China aviation rank the second place around the world, but there are still many problems in the quality and the market.This article evaluates the economic effects of China's reform on aviation industry, concerning the change about the nature of aviation industry. Furthermore, we make a retrospect of American deregulation, comparing it with China. In the end, this article will give some suggestions on China's reform of aviation market.