In Shanghai, China Eastern Airlines fell 3.3%, Air China lost 3.2% and China Southern Airlines dropped 4.5%.

WSJ: Latest Euro Hope Helps Asia Markets

The carrier said late on Monday that it had signed a preliminary cargo joint-venture agreement with China Southern Airlines, a stepping stone into the Asian market.

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"We expect our government will work out some measures to help domestic carriers as other governments have done, because it is a global issue, " said Su Liang, speaking for China Southern Airlines.

BBC: Airlines rush for government help

Guangzhou-based China Southern Airlines Co.

WSJ: Tokyo Shares Down Sharply

The CAAC has urged the 10 airlines under its control to merge into three carrier groups under China Southern, China Eastern and unlisted Air China in a bid to boost competitiveness.

BBC: China flies with Boeing