Chinese air transport is increasingly looking at expanding overseas as first signs of slowdown appear on the domestic market.
BEIJING- Performance of the Chinese aviation market in the first few months of 2012 shows that the market is probably entering into maturity on the domestic front . China’s aviation sector continues to growth at a more modest rhythm. Since 2000, passengers traffic increased by double-digit figures. However, in 2011, the growth was 9.2% representing 290 million passengers. And for 2012, it could even be lower, according to recent comments from CAAC director general Li Jiaxiang (Civil Aviation Authority of China). Chinese carriers have been affected by rising fuel prices, economic slowdown in markets in Europe and the USA and a slowing demand in Japan consequent of the tsunami and the earthquake. But it has also been hit by the emerging competition of high speed trains on domestic routes as well as congestion in the skies on domestic flights. Most Chinese carriers recorded a decline in profit such as Air China (-39%), China Southern (-12%) and China Eastern (-10%).
Domestic traffic represents so far the bone of Chinese air transport with the slowdown likely to continue in the years to come. More Chinese carriers now switch their strategy to expanding more aggressively overseas. Currently less than 15% of all passengers’ movements are international. Experts such as CAPA (Centre for Asia Pacific Aviation) estimate that China international passengers movement could grow by 80% between 2010 and 2020, reaching probably 77 million compared to 45 million. In a report, CAPA expects these figures to be exceeded as China’s aviation links with its Asian neighbours expand. The acquisition of more widebody aircraft by Chinese carriers and their acceptance within a global alliance will play in favour of international expansion. While the three larger carriers being now part of an alliance, Hainan Airlines –the last big independent airline- should also make its choice –most probably in favour of Oneworld which still lacks a Mainland China partner.
Luc Citrinot a French national is a freelance journalist and consultant in tourism and air transport with over 20 years experience. Based in Paris and Bangkok, he works for various travel and air transport trade publications in Europe and Asia.
![[PR] PR_Ascott and Vimut Hospital_2024](https://www.traveldailynews.asia/wp-content/uploads/2024/04/PR-PR_Ascott-and-Vimut-Hospital_2024-400x265.jpg)
