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CAAC confirmed (06-Dec-2011) Shanghai Pudong Airport’s fourth runway and fifth runway project proposals received approval from China’s National Development and Reform Commission on 21-Nov-2011. The CNY2580 million (USD403 million) fourth runway project includes construction of a 3800m runway while the CNY4650 million (USD726.6 million) fifth runway project includes construction of a 3400m runway.
Aviation changes in China: an airline and airport review Part 2
The good news for foreign airlines is that Chinese carriers, independently and with guidance from regulator CAAC, will want to expand partnerships and seek closer ties in existing arrangements.
The downside is the typical difficulty in aligning with the Chinese airline nuances: their inexperience with open markets; ambiguity about larger political events that could influence alliances; deeper mistrust if a partner’s partner is a competitor, no matter to what degree; and service on the ground and in the air that is improving, but still lags significantly.
This extract is Part 2 of a detailed review of China's aviation outlook contained in the October-November issue of Airline Leader, CAPA's journal for aviation CEOs. To receive your personalised e-copy of Airline Leader, sign up by clicking the panel on this page.
China aviation: CAPA's airline and airport review 2012: Part 1
While the world watched China’s Nov-2012 central government leadership change, of greater relevance to air transport will probably be another change: that of the aviation regulator, the Civil Aviation Administration of China (CAAC), which is expected to undergo a high-level turnover within the following six months. Current administrator Li Jiaxiang is expected to retire from the CAAC, possibly to take up a higher office in government.
The new leader may well preside over a period of radical redirection of the powerful body – for that is what is needed in today’s very different world.
The CAAC is more than the industry’s regulator and safety authority on a micro and macro level: it decides exactly what routes local and foreign airlines can fly, sometimes with perplexing outcomes, as well as the general policy of how air transport should develop.
China’s domestic market is about half the size of the world’s largest domestic market, the United States, but Airbus expects China will overtake the US by 2031. It may well happen before that. Boeing forecasts that China will need to take 5,260 commercial aircraft until then – almost one new aircraft every day for the next 19 years.
This extract is Part 1 of a detailed review of China's aviation outlook contained in the October-November issue of Airline Leader, CAPA's journal for aviation CEOs.