Air China Ltd. Chairman Kong Dong is retiring after nearly four years at the helm of the nation's flag carrier, making way for a former aviation regulator to take over at a time when demand for international travel is weakening.

Kong's resignation came two months after he relinquished his duties at Air China's state-owned parent, China National Aviation Holding Co., where he was succeeded by veteran civil aviation regulator Wang Changshun as general manager, a position equivalent to chief executive. Wang, 54, was also named nonexecutive director at the listed unit, Air China said in a statement Wednesday.

Though Air China said it has yet to choose a successor for Kong, a person familiar with the situation said Thursday it would name Wang as the new chairman, in line with the appointment at the parent company. Air China said in a statement Kong's resignation would be effective once shareholders approve the appointment of a replacement.

Wang had been widely seen as a contender to succeed Kong. He was previously deputy head of the General Administration of Civil Aviation of China -- the nation's main civil aviation regulator -- before joining China National Aviation Holding. Wang has also assumed the post of vice party secretary to oversee the Communist Party's activities at the parent firm. It is common practice for the Communist Party to be represented at mainland Chinese firms, and party officials wield significant powers in areas of staffing and corporate strategy at state-owned companies.

Kong, who joined Air China in September 2004, was appointed chairman in 2008. Air China gave his age as 62 in its 2010 annual report published earlier this year.

Under his watch, Air China remained the most profitable among the three major Chinese carriers, with net profit jumping to a record 12 billion yuan in 2010, buoyed by higher contributions from 30%-owned Cathay Pacific Airways Ltd. as well as foreign exchange gains and more stringent cost controls.

However, the firm posted a 9.26 billion yuan full-year net loss in 2008, as the global financial crisis sent oil prices plunging, causing substantial fuel-hedging losses for the Chinese carrier.