China bans set-up of new airlines until 2010

China's aviation regulator has stopped accepting applications to set up new airlines until 2010, as part of effort to ease manpower and airspace shortages resulting from the industry's rapid growth.

The move is seen as a means of preventing overly optimistic aspirant carriers pouring money into the airline industry ahead of the 2008 Olympics in Beijing and the 2010 World Expo in Shanghai.

China has also cut the number of flights in and out of Beijing Capital International Airport by 48 a day as an initial step to curb flight growth. More flight cuts are planned for major cities including Shanghai and Guangzhou.

Mainland Chinese airlines carried 45.81 million passengers in the second quarter of this year, up 17.5 percent from the same period a year earlier. Six major airlines - China Southern Airlines, Air China, China Eastern Airlines, Shanghai Airlines, Shenzhen Airlines and Hainan Airlines - account for more than 90 percent of passengers carried in China.

China has so far approved the establishment of just three private airlines: Beijing-based Okay Airways, Chengdu-based United Eagle Airlines and Shanghai-based Air Spring.