China’s New Merger Math

There is an old Chinese proverb: “The world will unite after being long divided.” This may be equally applicable to China’s airline industry. Although there appears to be little chance that it will return to the era prior to 1987 when CAAC was the equivalent of Aeroflot in the heyday of the Soviet Union, nonetheless the industry is becoming more concentrated. Having broken up the CAAC monolith, the Beijing government stage-managed the first phase of reconsolidation ...