China’s Shanghai Airport Group expects Shanghai Pudong Airport to become the world’s busiest airport in terms of annual cargo throughput handling more than 5.0 tonnes of cargo by 2016, according to a 02-Sep-2011 China News report. In 2010, the airport was ranked third in the world with 3.2 million tonnes of cargo.
Shanghai Pudong slated to become busiest cargo airport by 2016
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China-Japan: Peach, Jetstar Japan & China United the latest LCCs to enter Asia's 3rd largest market
Japan-China is the third largest international country pair in Northeast and Southeast Asia. The market has expanded due to Chinese outbound visitor growth, with Chinese visitor numbers doubling from 2.4 million in 2014 to 5.0 million in 2015, and 9M2016 shows a further 30% expansion. LCCs account for approximately 10% of the market, and there are an expected three further LCC entrants in the Japan-China market: Peach Aviation, Jetstar Japan and China United Airlines. Their entry, however, comes after the major boom: eight airlines have entered the market since 2014.
The impact of the additional LCCs will be minimal in network size: Peach's four weekly Osaka-Shanghai flights are in addition to an existing 117 weekly flights. Over the long term there are strong opportunities for LCCs (as evidenced by the first mover Spring Airlines), but in the near future the greatest impact from additional LCCs will be in reminding Chinese full service airlines of alternative business models and their own need to reform. To a Chinese airline a Japanese LCC is almost paradoxical: an airline trying to be low cost in a high cost country with low population growth. Yet the relative success of Japanese LCCs provides a case study – and also market challenges.
Aeroflot 6th freedom Part 2: China service is a strength for a SkyTeam member excluded from JVs
Part 1 of this report on Aeroflot's connecting sixth freedom traffic noted that Aeroflot is the 13th largest carrier of passengers between Western Europe and Northeast Asia, whereas Finnair – whose "Nordic Shortcut" strategy is well-known – is slightly larger and is the 10th largest operator. After Emirates, Aeroflot is the largest airline flying passengers between the regions but is not based in either of them; all the other operators are Western European or Northeast Asian airlines.
This second and final part examines Aeroflot's growing connecting market in depth. Of the airline's connecting Western Europe-Northeast Asian passengers, 54% are travelling to/from mainland China. This correlates with the share of Aeroflot capacity allocated to China. Among Finnair, Turkish and the Gulf 3 "superconnectors", Aeroflot has the fewest destinations in Northeast Asia. Yet its frequency in prime Chinese cities is unmatched. Aeroflot has the benefit of good aeropolitical relations with China while benefitting from other airlines being restricted over Chinese airspace. This may appear to be a short term advantage that will reduce as competition grows.
Yet a review of the city pairs where Aeroflot is the strongest on transfer traffic indicates growth opportunities as more markets are incorporated into JVs and complacency settles in. This may increase already tense relations between Aeroflot and its SkyTeam partners. Pursuing stronger transfer traffic will be a delicate decision for Aeroflot management.