Planes of flag carrier Air China at Beijing airport.

China's fledgling private airline industry could take off in the first half of this year, using busy holiday travel seasons to launch their services.

The first group of private airlines could begin operations in the next few months, for example during the week-long May Day public holiday, the China Business Weekly reported, citing unnamed industry observers.

New rules by civil aviation authorities that took effect last week have set the bar low for entrants into the industry, allowing anyone with three planes to run an airline.

The rules, as reported earlier by the China News Service, also permit foreigners to have up to 25 percent ownership in the companies.

At least three private-sector airline operators have received approval from civil aviation authorities and plan to offer low-cost, no-frills services, the China Business Weekly said.

They include United Eagle Airlines in the southwestern city of Chengdu, Air Spring in the eastern city of Shanghai, and Okay Airways, based in the Beijing area, according to the paper. (AFP)