China’s Expanding Aviation Market and Opportunities
In the last two decades, China’s civil aviation sector has undergone significant development and will continue on a fast-paced growth trajectory. The Civil Aviation Administration of China (CAAC) reports that the country plans to spend $30 billion on aviation infrastructure in 2009 and $17 billion on airport construction and expansion over the next five years.
By 2020, China is expected to have a total of 244 civil airports, including 97 new airports to be built in the north, east and southwest. Approximately 40 of the projects are expected to start in 2009, according to CAAC.
China’s National Civil Airports Distribution Plan calls for 80 percent of the Chinese population to be within 62 miles of an airport, equal to an hour and a half drive. With this rapid expansion, China will become the second largest aviation market in the world in five years, according to industry forecasts, second only to the United States. Fueled by increasingly high tourism rates and sustained economic growth, the country has seen passenger growth rates of 10 percent to 15 percent a year and cargo volume growth of 8 percent to 13 percent.
With the current growth pattern, CAAC expects total air traffic volume to double by 2010 from 2005. Moreover, Chinese airlines will need to add 2,800 civilian aircraft and 40,000 pilots by 2023.
As air traffic grows, China faces an aviation infrastructure challenge in balancing security, air service quality, airspace management and efficiency. CAAC’s five-year plan addresses some of these concerns and states that a key priority is establishing a technologically advanced and reliable air traffic control system. CAAC’s plan focuses on expanding airport facilities, tightening security, installing monitoring systems, synchronizing airport operations with an information technology network and further enforcing certification.
Throughout China, airports are straining from a lack of infrastructure, especially air traffic control equipment, but the impact is felt most at major hubs. Over the past decade, CAAC has spent approximately $1 billion on air traffic management (ATM) infrastructure improvements.
The CAAC Air Traffic Management Bureau’s goal over the next 10 years is to improve facilities in the east and midwest of the country, with plans for a comprehensive data network, new automation-center systems, ground-air voice/data communications and new radar systems. China also plans to introduce ground-to-air communications and automatic dependent surveillance services for international and polar routes in the west.
China/U.S. Aviation Symposium - April 7-9, 2009 - Grand Hyatt Beijing
To facilitate a high-level meeting and promote constructive dialogue among China, the U.S. government and the aviation industry, the United States Trade and Development Agency (USTDA) and the Civil Aviation Administration of China, in cooperation with U.S.-China Aviation Cooperation Program, U.S. Department of Transportation/Federal Aviation Administration, U.S. Department of Commerce and U.S. Department of State, will sponsor an aviation symposium April 7-9, 2009, at the Grand Hyatt Beijing in Beijing, China.
This symposium will bring together officials to discuss opportunity for cooperation involving airport development, air traffic management, ATC capacity and efficiency, aviation safety, aviation environmental issues, airspace utilization, airport security and general aviation development.
The 2009 symposium will build upon previous aviation symposiums held approximately every two years in both the United States and China. As in prior years, the symposium will serve as a technical, policy and commercial symposium to assist the CAAC and other Chinese aviation industry representatives in identifying and specifying advanced U.S. technology that would best suit China’s infrastructure modernization needs. The symposium will serve as an impetus to facilitate the sale of U.S. equipment and services in an increasingly competitive Chinese aviation market.
The purpose of this symposium is to promote specific commercial opportunities for U.S. businesses, expand overall trade opportunities in China, and introduce U.S. security and safety technologies and operations that can improve immediate and long-term China aviation interests. Equally important, the symposium will offer important and valuable networking opportunities for U.S. and Chinese airport and aviation officials to discuss management and operational challenges facing the airport management profession in China and the U.S.
What Subjects Will Be Covered at the Symposium?
Speakers at the symposium will include prominent aviation officials from China and the U.S., U.S. and Chinese government officials, leading industry experts and aviation corporate executives.
Presentations will cover timely topics such as: