China to Merge it's Three Largest Airlines as part of the state-owned enterprises reformation plans

East Asia's communist country, China is deeming to have merger operation with the nation's largest three major carriers. The said merger talks spark after China revealed its state-owned enterprises reformation plans. Rumors also emerged that the two of the largest airline in China is on merger to create a large fleet on the records.

The Skift reported, the China is considering merging the country's three biggest airlines, Air China Ltd., China Southern Airlines Co. and China Eastern Airlines Corp in terms of cargo operations. Another consideration also includes the integration of three major carriers' passenger business or at least two of the three airlines. The source, who also requested for anonymity told, the talks is still ongoing and still has no final decisions.

According to the CH Aviation, it is part of China's 13^th Five-Year Plan covering 2016 to 2020, China's Supervision and Administration Commission (SASAC) that was announce the previous month of September, revealing the broad reforms, it is to form a "globally-competitive multinational" corporations capable of turning a profit by 2020.

However, according to the ETurbo News, following the merger speculations of the big three, the two of the major airlines, Air China and China Southern Airlines are also rumored of combining. However, on the 22^nd of October, the two airline companies cleared up the speculations. They explained that they are not informed by the Chinese government regarding the merging rumors.

If the said merger of the two Chinese airlines were carry on, their combined fleet will take the record and ranked as one of the top three largest fleet airlines companies in the world lined up with biggest airlines competitors, American Airlines and Delta Air Lines.

China's plans of merging the three major airlines are aiming to build a strong business dominated by the Chinese government by the year 2020. According to the analysts, they are also expecting to see the scope of consolidation of state-owned companies in nuclear power, aviation, shipping, defense and railways with the new reforms.