China's aviation boom drives airport building frenzy

Fri Jun 26, 2015 2:25am EDT
 
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BEIJING (Reuters) - When Mangshi opened its airport two decades ago, the small tropical city on China's border with Myanmar was served by few airlines. China's recent travel boom has changed that - seven carriers brought in more than 1 million visitors last year.

"We had a hard time attracting airlines in the early days," Li Ping, deputy chief of the airport's expansion steering committee, told Reuters. "Now we are struggling to accommodate flights."

Mangshi is one of more than 60 inland airports under expansion, with another 30 new regional airports being built. Government planners estimate China's airports will increase to 240 by 2020 from around 200 today.

Li Jiaxiang, head of the Civil Aviation Administration of China (CAAC), said this week the country would invest $80 billion in aviation projects this year alone.

The aviation market is being lifted by rising business travel and a surge in outbound tourism fueled by an increasingly wealthy middle class in coastal and inland cities.

The number of leisure travelers going overseas for the first time topped 100 million in 2014, official data shows. Foreign travel is tipped to grow another 10 percent this year as the United States, France and Australia ease visa policies.

That has prompted Air China (0753.HK: Quote), China Eastern Airlines (0670.HK: Quote) and China Southern Airlines 1055.HK to fly to New York, Paris and Sydney from Nanjing, Wuhan or Chengdu, or at least with a stopover in those second-tier cities.

China's so-called Silk Road initiative is also certain to boost traffic. Under the scheme, the government aims to extend its economic and political influence to neighboring countries. A network of railways, highways and new air routes are part of the plan.

Last year passenger volumes at Chengdu's Shuangliu airport and Chongqing's Jiangbei airport rose 12.6 percent and 15.8 percent, respectively, beating Beijing's 2.9 percent gain and Guangzhou's 4.4 percent increase.   Continued...

 
Two people watch planes land as they stand in the terminal three building of the Beijing Capital International Airport in this July 11, 2011 file photo.   REUTERS/David Gray/Files