China's aviation growth is shifting to the west but with challenging opportunities for airlines

While China is sometimes seen a promised land with endless growth for aviation, it is a divergent story. Beijing Capital Airport grew passenger volumes by only 2.2% in 2013 compared to 3.4% at London Heathrow, the much-bemoaned constrained airport. The eastern coastal part of China accounts for the majority of travel, with 70% of 2013's 754 million passengers flying in the region. But this share is gradually falling; in 2006 73.2% of passengers flew in the eastern regions.

It is western provinces and the northeast that are taking market share, albeit slowly. It is these provinces that are seeing rising GDP and are home to some of China's fastest growing airports, such as Guiyang and Kunming. While the growth presents opportunities for domestic and foreign airlines, it presents challenges as flights are often not profitable. KLM's extensive secondary airport network in China is not profitable and the carrier does not see short-term changes. West Air, based in Chongqing, is transitioning to a LCC model in the hope that a leaner cost base makes it more sustainable. Airports often put out subsidies, effectively buying growth.