Description

Since 2014, despite negative influence from slower economic growth at home and abroad and high-speed railway on Chinese aviation market demand, China’s civil aviation passenger throughput still kept relatively rapid growth driven by tourist’s leisure demand, and cargo & mail throughput rallied slightly driven by a pickup in exports. In the first eleven months of 2014, China’s total civil aviation turnover, passenger turnover, and cargo & mail turnover reached 68.385 billion ton-kilometers, 580.181 billion passenger-kilometers, and 16.874 billion ton-kilometers, a year-on-year increase of 11.1%, 11.60%, and 8.8%, respectively.

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However, the airlines suffered heavy exchange losses due to yuan depreciation against dollar. In the first three quarters of 2014, four big airlines all saw sharp decline in net income, with China Eastern Airlines falling the hardest, at 48.94%. Compared with significant drop in profits of the four big airlines since 2010, Spring Airlines, a representative of budget airlines, has enjoyed continuous increase in revenue and net income ever since 2011, with the latter recording a growth of 4.17% in the first three quarters of 2014.

To improve performance, the airlines in China have sought to make progress in two aspects since 2013: accelerate the opening up of international and regional routes; speed to expand into low-cost aviation industry.

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Actively opening up new routes: In 2014, Air China added 12 routes (4 domestic ones and 8 international ones), totaling 33 international routes from 2012. In the same year, China Southern Airlines opened 9 new international routes, bringing the total newly-added international routes to 26 since 2012.

Speeding layout in low-cost aviation industry: In Mar. 2013, China West Air announced to transform into a low-cost carrier; in Jun. 2013, Hong Kong Express Airways announced its intention to transform into a low-cost carrier; on Jul. 2014, China Eastern Airlines announced its subsidiary China United Airlines to convert into a low-cost airline; on Jan. 21, 2015, Spring Airlines got its shares listed on the Shanghai Stock Exchange, becoming the first listed low-cost airline in China.

1. Development Environment for China Air Transport Industry

1.1 Economic Environment
1.2 Policy Environment
1.3 Social Environment

2. Operation and Development Status of China Air Transport Industry

2.1 Operation Indicators
2.1.1 Transport Capacity
2.1.2 Traffic Turnover
2.1.3 Traffic Volume
2.1.4 Traffic Efficiency
2.2 Low-Cost Aviation Market
2.2.1 Development Process
2.2.2 Development Status
2.2.3 Future Development

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