Chief Executive of London Stock Exchange Clara Furse (C) and Vice President of Air China Wang Shixiang (4th L Front) applaud for the listing of Air China Co. Ltd. on London Stock Exchange in London, Dec. 15, 2004. Air China was listed and traded Wednesday at London Stock Exchange. (Xinhua Photo)

Air China's debut on the Hong Kong and London stock markets Wednesday can be seen as a signal of deepening aviation reform, which changed from increasing aviation efficiency to redefining the ownership, said Chen Liran, an aviation insider.

China's huge potential in aviation is well-recognized. The stock price of China Southern and China Eastern rose 30 percent inNovember despite a plane crash and China Aviation Oil company scandal. The market value of China Southern reached about 1.7 billion US dollars and that of China Eastern reached some one billion US dollars. After Air China's Initial Public Offering (IPO), its market value will surpass 2.5 billion US dollars.

Several airlines listed earlier, including Hainan Airlines, Shenzhen Airlines and Xiamen Airlines, made profits after their IPOs as well.

"Apart from the fact that they can collect more money on the market, the most crucial thing for these airlines is that they allbecome public companies," acknowledged Liu Yongtao, a Chinese aviation expert.

Experts hold that the goal of aviation reform is to make profitfor state-owned companies.

The debut of flag carrier Air China and the recent investment of Cathay Pacific to Air China signifies that China's aviation industry planned to strengthen public supervision on airline companies, according to experts.

Air China will release its fiscal report on operation performance to all investors after its IPO, and the market will judge its achievements by raising or lowering the stock price.