Aviation market in China is expected to grow more rapidly in the later half of 2009 as the market is gradually improving in lines with improving economy.
China’s aviation regulator noted that the country’s aviation market is giving indications of recovery and is expected to maintain rapid monthly growth for the remaining part of the current year, reported
CHINA.ORG.CN.
According to the Civil Aviation Administration of China (CAAC), 21 Million passengers travelled by domestic airlines in July, up 21.9% year-on-year. It was mainly due to the government’s stimulus plan that the country saw demand for air travel reviving. A combined profit of 510 Million Yuan was earned by the domestic carriers during July 2009, said CAAC.
The stimulus package of worth 4 Trillion Yuan (US$ 586 Billion) helped the Chinese economy to recover, which in turn, prompted higher demand for air travel, claimed the CAAC.
In the mature aviation markets of Europe and US, total civil aviation market’s 30-40% is generally accounted by regional airlines. But in case of China, regional airlines account for just a share of 5% of its total civil aviation market. So, it’s quite difficult for people living in many medium-sized or small cities of China to experience convenient air travel.
However, research report “
Aerospace Industry Forecast to 2013” by
RNCOS says that the Chinese aerospace sector is one of the most dynamic sectors in the world because of the massive investment made by the country in this sector. Besides, Chinese aerospace companies are rapidly increasing their presence in the global aerospace industry. The report forecasts that the country will buy in excess of 3,700 airplanes before 2028, and thus having a potential market value of US$ 390 Billion. As a result, it will emerge as the most potential market for civil aerospace.
Officials from CAAC highlighted that to support the development of China’s aviation sector, it is thinking of relaxing the exam and approval procedures for establishing the regional airlines that are planning to buy China-made aircrafts.
According to a Research Analyst at
RNCOS, “Regional aviation market of China is still in its nascent stage. Despite huge demand in cities, development of regional airlines is far behind than that of the main air routes. So, the country needs to take some effective steps to address this problem, thereby making the industry grow leaps and bounds.”
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