China urged the country's investors Friday to buy into domestic airlines and airports, trying to boost inflows of much-needed capital as its fragmented aviation sector consolidates.
The Chinese government would keep its stakes in its three largest carriers, but private investors would be encouraged to buy into smaller airlines or the country's troubled airports, the General Administration of Civil Aviation of China said in a statement on its website.
China has over 130 airports, most of them loss-making because of insufficient air traffic demand, especially in the inland provinces. It also has a raft of smaller regional carriers, including Hainan Airlines Co Ltd, in which global financier George Soros has invested.
The industry regulator's statement did not specify if foreign investors would be welcomed, but a number of European companies have been negotiating to buy slices of Chinese airports.
China's aviation sector has been undergoing a consolidation in recent years, forming groups headed by the country's top three carriers -- Air China , China Eastern Airlines and China Southern Airlines.
In another development, China said Friday the country's airlines would sign contracts early this month to pay a combined US$6 billion for 50 Boeing 787 aircraft. The carriers included Air China, China Eastern Airlines, Hainan Airlines, Xiamen Airlines and Shanghai Airlines, the National Development and Reform Commission said.
