China Focus: China's air market flying high, headwinds remain

Fasten your seat belt, because China's air industry is ready to take off!

The numbers of China's international air passengers and new international air routes both increased by more than 30 percent in 2015, according to statistics released at the World Route Development Forum, which concluded Tuesday in Chengdu, capital of the southwestern province of Sichuan.

At the four-day forum, Shuangliu International Airport of Chengdu inked deals to launch nine regular direct international flights, while the southern metropolis of Guangzhou had negotiations with more than 30 airline companies.

China's air market has picked up speed in recent years. Its air routes to Europe and North American have increased from a mere 15 in 2009 to 235 in 2016, linking 14 Chinese cities, many of which are second-tier, inland cities, according to Richard Evans, senior consultant at Flight Ascend Consultancy.

By the end of 2015, 20 Chinese airlines had flights linking China and 138 cities in other countries and regions, and 129 foreign entities operated flights from 126 cities overseas to 57 Chinese cities, according to the Civil Aviation Administration of China (CAAC).

"These (figures) show business insiders' great interest and growing confidence in the future of China's civil aviation industry," said CAAC deputy head Dong Zhiyi.

SKYROCKETING INDUSTRY

With China's air industry development gaining speed, aeronautical specialists say the sky is the limit for aviation in the world's most populous country.

China's outbound passengers stood at 120 million last year, allowing many foreign airlines to launch flights to China, said Zheng Lei, director of the center for aviation research at the University of Surrey in Britain.

"If the current trend continues, by 2034, there will be 14,000 more planes flying to Asia," Lei said.

Vinoop Goel, Asia-Pacific regional director of airport, passenger, cargo and security at the International Air Transport Association, said that China is one of the world's major five markets, and with such growth potentials it will likely surpass the United States.

The western inland is particularly a magnet for those looking to enter the Chinese market.

Take Sichuan for example. In 2015, the province's total economic output exceeded three trillion yuan (450 billion U.S. dollars), making it sixth nationwide. So far, 278 of the top 500 global companies and 70 percent of the world's most renowned brands have offices in the provincial capital Chengdu.

During the forum, Chongqing Airport Group, in neighboring Chongqing Municipality, spoke with more than 30 foreign airliners, while Yunnan Airport Group agreed to cooperate with multiple airline companies in South Asia and Southeast Asia, as well as reaching out to airlines from Europe, the United States and Japan.

"The economic growth rates posted by Chinese provinces and cities are amazing and we are very excited to enhance cooperation," said Khalil Lamrabet, director of Dubai airports aviation business development. "We expect to bring more tourists and more job opportunities [to Chongqing]."

But with the opportunities have emerged some challenges.

Vinoop said that the major obstacle was transporting capacity; the ability to carry increasing numbers of passengers.

"If transporting capacity is insufficient, the industry will suffer," he said. "To solve this problem, airports and airlines must enhance coordination."

Hou Wei, vice president of Hainan Airlines, said that it was necessary to coordinate air transportation policies, air traffic control and airport services, if the industry is to become stronger.

Meanwhile, aviation specialists say that airline companies, airports and tourism authorities should improved communication to address the problem of flight delays.

"In the past few years, we have had very close cooperation with airline companies and reduced flight delays," said Susan Kurland, deputy commissioner for air service development with Chicago Department of Aviation. "We also stepped up investment in the aviation industry, improved efficiency in terminals, and built many hotels near airports to meet the demand of our customers." Endi