China Air Transport Market and Airport Industry Report 2015-2018
DALLAS, March 3, 2015 /PRNewswire/ --
ChinaMarketResearchReports.com adds China Air Transport and Airport Industry Report, 2015-2018 market research of 110 pages, published in March 2015, to the Public Sector intelligence collection of its store.
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.
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
Operation of Major Chinese Airlines
China Southern Airlines, China Eastern Airlines, Air China, Hainan Airlines, Cathay Pacific Airways, Shandong Airlines, Spring Airlines, Juneyao Airlines, Shenzhen Airlines, Xiamen Airlines, Sichuan Airlines, China Express, China United Airlines, China Postal Airlines, China Cargo Airlines, Okay Airways
Operation of Major Chinese Airports
Beijing Capital International Airport, Shanghai Airport, Baiyun Airport, Shenzhen Airport, Chengdu Shuangliu International Airport, Kunming Changshui International Airport, Xi'an Xianyang International Airport, Chongqing Jiangbei International Airport, Hangzhou Xiaoshan International Airport, Xiamen Gaoqi International Airport, Changsha Huanghua International Airport, Nanjing Lukou International Airport, Wuhan Tianhe International Airport, Urumqi International Airport, Qingdao International Airport
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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.
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
China Air Transport and Airport Industry Report, 2015-2018 focuses on the following:
- Development environment for air transport industry in China, covering economic environment, policy environment, and social environment;
- Operation status of air transport industry and low-cost aviation market in China;
- Operation status of airport transportation in China, including passenger throughput, cargo & mail throughput, and airplane takeoffs and landings;
- Overall economic results of air transport industry in China, encompassing revenues and total profits of companies in the industry;
- 16 major airlines in China, including financial situation, transport capacity, carrying capacity, load factor, development strategy, and performance forecast;
- 15 major transport airports in China, including financial situation, three production index, and performance forecast;
- Forecast on main data of China's air transport industry for 2015-2018.
In January-November 2013, China's civil aviation industry completed total traffic turnover of 61.6 billion ton kilometers, up 10.3% YoY; passenger transport volume of 326 million people, up 11.0% YoY; cargo and mail traffic of 5.067 million tons, up 2.4% YoY. Compared to the falling tendency in 2011 and 2012, growth rate recovered slightly in 2013.
Under the comprehensive action of "sluggish macro-economy" superimposed by "structural impact brought by high-speed rail", the overall effectiveness of Chinese aviation industry continues to decline. For the first quarters of 2013, net income of China's three major state-owned airlines witnessed year-on-year decrease: Air China fell by 3.69% YoY to RMB4.061 billion; China Eastern Airlines RMB3.621 billion, a slight decline of 0.23%; China Southern Airlines RMB2.46 billion, down 7.69% YoY. But Hainan Airlines embraced double-digit growth in net income, which rose 28.44% YoY to RMB2.184 billion.
In order to improve their performance, Chinese airlines since 2013 have been looking for breakthroughs mainly through two ways: to accelerate the open-up of international and regional airlines and to tap into low-cost aviation field. Among them, China Eastern Airlines, Hainan Airlines, Spring Airlines, Juneyao Airlines, etc. have made layout in the low-cost airline business, and many foreign low-cost airlines are also planning to seize the Chinese market.
So far, there is only Spring Airlines that has opened the low-cost airline operating model in China. Founded in 2004, Spring Airlines has boasted 40 Airbus A320-200 aircrafts as of January 2014; volume of passenger traffic reached 8.847 million persons-times in January-October 2013, a year-on-year increase of 14.69%.
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