"We will see the three major carriers speed up on their expansion plans in each others' headquarters. But what's important is to guarantee that they will hold market share in their home bases," an analyst said.

Zou Jianjun, a professor with Civil Aviation Management Institute of China, said the newly-merged China Eastern should be wary of its home base.

"Although China Eastern and Shanghai Airlines together hold more than 50 percent of Shanghai's market, they may not secure the percentage after the merger.

"This is because the previous market share was achieved through fierce competition. In addition, after the merger, they may shift part of their capacity to other cities. All these factors may turn negative," Zou warned.

(China Daily July 22, 2009)