- CAPA Analysis
- Schedule Analysis
- Cargo Analysis
- Market Share
- Low Cost Carriers
- Economics & Trade
- Fast Fact Report
- IATA Code
- International Airlines serving this country (excluding codeshares)
China’s aviation industry is growing rapidly, in line with its burgeoning economy. The CAAC is the aviation authority under the Ministry of Transport of the People's Republic of China responsible for civil aviation and the investigation of aviation accidents and incidents. The military controls Chinese airspace (restricted), in addition to flight clearances and authorisations. Non-commercial air travel is subordinate to military traffic and as such, general and private aviation in the country is rare.
Airports in China
44,225 total articles
1,253 total articles
In just over a year Taiwan's LCCs – Tigerair Taiwan and V Air – have carved a 10% share of the Taiwan-Japan market. More Taiwanese visit Japan than any other market while Taiwan is Japan's third largest outbound market after Korea and mainland China. Taiwanese have affinity for Japan and share some culture, and additionally a Nov-2011 open skies agreement has unlocked growth. Summer 2016 seat numbers are 143% higher than five years earlier in summer 2011. Summer 2016 is 26% up from 2015.
Six years ago there were no LCCs in the market. Now, LCCs make up 26% of the total market and have a higher share on specific routes: 30% between Osaka and Taipei, 43% between Tokyo and Kaohsiung. Taiwanese LCCs account for 35% of the LCC market – double their share at the start of 2016.
Lower costs in Taiwan and a home market advantage give Taiwanese LCCs a strong growth outlook in Japan. Yet elsewhere they are struggling to find new markets. Japan accounts for 57% of Tigerair Taiwan and V Air's seat capacity. Korea and Hong Kong are bilaterally constrained, while Southeast Asia has not been as popular a market. Taiwan's LCCs made quick wins in the underserved Japanese market but now have work ahead of them to build awareness of new markets.
Leaders of North Asia’s low cost carriers (LCCs) will gather in Narita on Jun-7/8 for CAPA’s North Asia LCC Summit.
Hosted by Narita Airport, the Summit marks 12 years of CAPA’s flagship series of LCC events in Asia and marks CAPA’s second return to Japan.
Featuring over 40 speakers, including senior executives from all of North Asia's LCCs, and with simultaneous translation in English, Japanese, Korean and Mandarin, the Summit will explore the commercial drivers for LCC growth in this region, as the market opens.
North Asia has yet to experience the rapid expansion of LCCs that has occurred in Southeast Asia - but that is changing quickly.
Thai Airways' regional full service subsidiary Thai Smile plans to launch 10 international routes by the end of 2016 and expand its international network from only four to 15 destinations. The expansion is made possible as Thai Smile takes over all four of the A320s currently operated by Thai Airways and improves the utilisation of its existing 16 aircraft.
Chandigarh in India and Jieyang and Zhengzhou in China will be new destinations for Thai Smile and the Thai Airways Group. Thai Smile is also taking over two other Indian destinations from Thai Airways – Gaya and Varanasi – along with one other in China, Chongqing. Thai Smile will also start operating alongside Thai Airways to Penang in Malaysia, Phnom Penh in Cambodia and Vientiane in Laos.
In addition Thai Smile is planning to resume services to Mandalay in Myanmar and Luang Prabang in Laos. All the new and resumed routes will expand the Thai Airways Group network to 14 international destinations in Southeast Asia, 10 destinations in China and nine in India.
The year 2016 marks the third consecutive year of high single-digit growth between Asia and North America, and the third year of approximately 20% annual growth between China and the United States. Between 2012 and 2016, trans-Pacific flights have grown from 150 a day to 193 while those just between China and the US have doubled from 21 to 42. One in five trans-Pacific flights is travelling between China and the US, and one in four from China to Canada/US.
Although demand is strong, capacity has arguably grown slightly faster. This pressure, combined with wanting to secure a strategic foothold, has the result that airlines on both sides are considering deeper partnerships, including joint ventures. CAPA's recent Americas Aviation Summit held in Las Vegas brought together airlines representing the spectrum of trans-Pacific alliance developments: ANA, which has a joint venture with United and wants to expand it to include Air Canada; Air China, which wants closer ties to its Star partner United, and equity partner Cathay Pacific; Korean Air, which has been aggressively courted by Delta; and Hainan Airlines, which is seeking a partnership solution. Hainan opposes any JVs that foreign airlines may seek to establish with state-owned airlines, such as Air China. Hainan's worries of protectionism could gain ground with the US DoT, which permits JVs so long as there is open skies and no barriers to entry. US-China open skies is one of the most pressing aeropolitical matters.
The Lufthansa Group is taking measures across its three full service brands to recalibrate in East Asia, its second largest long haul market by ASKs after North America - and with the highest growth potential. Hong Kong has been the group's de facto hub, historically, despite the lack of a Star Alliance partner. JVs are forming with Star partners Singapore Airlines and Air China, and the Hong Kong hub will diminish in importance. This will take time: JVs with Singapore Airlines and Air China are evolving slowly, with the Asian party being conservative compared with the more experienced Lufthansa.
The JVs will enable the Lufthansa Group to fill white spots (Malaysia, Indonesia) and improve offline connections; Australia is the group's largest offline market. Many of these opportunities are markets where Gulf airlines have already dominated the market. Lufthansa has an existing JV with ANA: 17% of East Asian seats are covered under a JV. After the Air China and SIA JVs come into force this figure will rise to 64% – still less than JV coverage in North America.
Thai Airways will enter a new phase over the next year as it completes its transformation plan and starts to consider potential options for resuming expansion. Regional international growth is the most logical area to focus on, using the group’s full service short haul subsidiary Thai Smile.
Thai Smile currently only serves four international destinations. As Thai Airways mainline transitions to an all-widebody fleet the group will need a much larger international network from Thai Smile.
Thai Airways should also examine better integration of Thai Smile, following the model used by Singapore Airlines (SIA) with its full service regional subsidiary SilkAir. The current setup, including separate reservation systems and sales teams, is far from ideal and must be improved in order for the Thai Airways Group to close the gap with the SIA Group in key markets such as China, India and ASEAN.