Published on : Thursday, March 9, 2017
China’s domestic aviation market is expected to continue a strong and consistent growth until 2020 as per a research named ‘The Land of Silk and Money’ by Ireland-based international aircraft leasing company Avolon.
According to the key findings, the domestic air passenger numbers predict to double and reach 840 million by 2026, with growth averaging 6.8% per annum. The low cost carriers will continue to achieve the highest growth rates, increasing traffic volume by 38% per annum in the five years to 2015. Also, the “Big 3” airlines will add the largest number of passengers to their networks.
Other research studies showed that growth in China’s domestic airline industry is influenced by a combination of economic growth, urbanisation, the rise of consumerism, increasing disposable income and the availability of more, and more affordable, low cost airline capacity.
Together with a gradual relaxation in the regulatory environment, Chinese airlines will continue to see a strong consumer demand. It has encouraged developing a broad-based airline community, with multiple new entrants and a growing LCC sector.
The Chinese Government has a current investment budget of USD 11.7 billion to upgrade current airports, improve ATC facilities and increase airline fleet growth. They also plan to complete the construction of 60 new airports by 2020.
In May 2017, the second paper in the China aviation white paper series will be published which will focus on China’s international inbound and outbound travel markets. It will also show the future fleet requirements of China’s airline industry.