The civil aviation authority plans to build a terminal specifically for budget airlines at the new airport in Beijing, the Beijing Youth Daily reported on Wednesday.

"We encourage airports in big cities to build terminals for budget airlines," said Xia Xinghua, deputy director of Civil Aviation Administration of China.

The CAAC is also working on relaxing policies concerning budget airlines, such as plane purchases, ticket prices and routes, Xia said.

There are 13 foreign budget airlines from five countries operating 322 flights weekly in China, but Spring Airlines is China's only domestic budget carrier.