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Dalian, Harbin and Shenyang airports propel China's northeast revival as region to see largest FDI

Analysis

Those in the know are aware that China's new growth is out in the west, in cities like Chongqing, where Finnair launched services in 2012, or Chengdu, which British Airways will serve later in 2013. This singular focus on the frontier west, however, obscures China's northeast: a growing section in China's corner that many are unaware of or assume that, being in eastern China, it has slower growth.The former rustbelt region is movign ahead.

The region is anchored by Liaoning province, which is not only growing but forecast by the Economist Intelligence Unit to be China's largest recipient of foreign direct investment by 2014.

The key airports are Dalian and Shenyang in Liaoning, as well as Harbin, in neighbouring Heilongjiang province. Yet, despite the strong growth indicators, the outlook for international air services is mixed. Certainly, this is China and growth there will be strong, but relative to other regions, perhaps not as enticing. Liaoning and Heilongjiang are in the thick of northeast Asia, a mere one or two hour flight from mega-hubs at Tokyo Narita and Seoul Incheon, whose hometown carriers have a large presence in northeast China as they can efficiently provide connections.

In mainland China's de facto international hub, Hong Kong, typically expansionist Dragonair does not serve any of the northeast airports. Lufthansa serves Shenyang, which SIA's Scoot will soon serve as well.

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