A Study On Substantial Ownership And Effective Control Of Airlines

China's legislation and practice have failed to establish clear and unified standards for the substantial ownership and effective control of airlines,resulting in problems that cannot be properly resolved for international aviation investment.The norms of foreign airlines' substantive ownership and effective control are mainly judged from the aspects of investment ratio,board member structure and national character.Such extraterritorial rules are of reference significance for China The definition of "citizen" involved in the substantial ownership and effective control should be attached with the restrictions on the main place of business at the same time,so as to make the substantial ownership of China's airlines And effective control power in the hands of our people.The design of airlines' substantial ownership and effective control system should be analyzed from three aspects of national security,economy and law.Due to excessive restrictions on the real ownership and effective control of airlines,it is not conducive to the development of the aviation investment industry.China should take some measures to relax the substantial ownership and effective control of airlines,which can be manifested in various forms,such as stipulating different substantial ownership and effective control rules,for example,increase the proportion of foreign investment in the proportion of shares and change the provisions of the board of directors to achieve deregulation and development of the aviation industry,while achieving the state's appropriate control of aviation strategic resources.