CAAC: China lacks airports, airport construction to continue despite losses at 70% of airports
CAAC director general Li Jiaxiang stated China will continue to construct airports despite 134 of its 182 airports reporting accumulated losses of CNY2900 million (USD453.1 million) in 2012, equivalent to CNY20 million (USD3.1 million) in losses per airport. As reportedly by local sources such as China Broadcasting, Carnoc.com, People’s Daily and CAAC-News, Mr Li said 82 new airports will be built by 2015 to meet rising air travel demand, adding “We should not merely see airport profits but take into account that an airport can largely boost the economy of the whole region.” Mr Li believes China is still lacking in the number of airports, particularly regional airports. Mr Li said airport losses was mainly due to their method of operation and that “if the airports were public infrastructure facilities, they would make a profit.” Mr Li called for a limitation in local government involvement in the operation of airports, saying governments should only be responsible for the construction of airports. At present, local governments establish companies to construct and run airports in China.