China aviation heads to clearer skies but clouds remain

"After a turbulent first half, it seems that China's aviation industry is flying into clearer skies. On Tuesday, Air China, the country's flag carrier, said profit for the first six months of 2009 jumped more than 50 per cent from the same period last year, due to strong domestic traffic, fuel hedging gains, stringent cost control and state support. The news came on the heels of a long-awaited announcement by China Eastern to buy smaller rival Shanghai Airlines for $1.3bn. The takeover is likely to help the carrier return to profitability this year following the end of a fierce price war between the two Shanghai-based airlines." Next