NYTimes.com Article: China to Halt Plane Deals

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China to Halt Plane Deals

December 29, 2004






BEIJING, Dec. 28 (AFX) - The aviation authority of China
said on Tuesday that it had decided not to approve new
aircraft purchases next year to cool what it considered to
be an overheated aviation sector.

Yang Yuanyuan, director general of the General
Administration of Civil Aviation of China, told an industry
forum this week that 147 new planes would be put into
service next year, enough to meet demand.

"Therefore, we will in principle not approve any new orders
next year," Mr. Yang was quoted as saying in a statement
posted on the Web site of CAAC News, the news outlet run by
the regulator.

The move is aimed at curbing overheated growth in the air
service sector, he said.

Mr. Yang said that uncontrolled capacity expansion by
domestic airlines had led to poor service and safety
issues.

http://www.nytimes.com/2004/12/29/business/worldbusiness/29halt.html?ex=1105337933&ei=1&en=2b9baae2e00adf9c


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