China will increase support for the development of its aviation industry with new favorable policies and an expected 1.5 trillion yuan ($231.9 billion) investment during the next five years, Shanghai Securities News reported on Monday.

Li Jiaxiang, head of the Civil Aviation Administration of China, said the State Council will release new guidelines for the aviation industry within the year to upgrade the industry's hardware and software environment.

The favorable policies will include investing more on airport infrastructure, subsidizing regional air transportation, and improving the research and development ability of domestic airplane makers. 

"We should build two or three world-class airlines by market operations and government help", Li said.

Analysts said the new guidelines will lead to further integration of the industry.