China's government has approved a major restructuring plan for the country's aviation industry, to help domestic airlines meet the challenges posed after China's recent accession to the World Trade Organization.

Under the plan, China's three largest airlines will each merge with another two smaller carriers, so that nine Chinese airlines will consolidate into three major groups. The government said it would encourage more domestic airlines to join the three new groups in the future.

In specific, Air China, the country's flag-carrier, will merge with China Southwest Airlines and with China National Aviation Corporation. China Eastern will merge with Yunnan Airlines and China Northwest Airlines, while China Southern will combine with China Northern Airlines and Xinjiang Airlines.

Each one of the new airlines will have assets of about $6 billion and will own around 200 aircraft.

The plan also envisages the transfer of the management of China's 129 domestic civil airports from the Civil Aviation of China to local entities.

Some information for this report provided by AFP and DPA.

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