China's Aviation Regulator Focuses on Regional Airports
China's chief regulator within civil aviation, Yang Yuanyuan, outlined new plans for the country's airports in an interview given to news agency Reuters on the 17th October. He confirmed that he has requested the Chinese military to permit budget airlines to have use of secondary airports nationwide. Additionally, he said, China's government was on course to invest one billion yuan into the airport sector.
Although demand has heightened, low-cost airlines have been slow to emerge in China. Among the reasons for their comparative scarcity (in contrast to the likes of the US) are an absence of secondary airports, and high taxes placed on imported aircraft and associated parts.
"At the moment...", said Mr Yang, "...it's one city one airport, and that's the main airport, which are big and have very full schedules. But we are devoted to developing low-cost airlines".
He continued: "Beijing has a few military airports surrounding it. We are having talks with the military, so perhaps we can open some up and they can be joint civil-military airports. Guangzhou also has some military airports nearby. We're also talking about opening up some of those."
"The terminal facilities and service will be simpler. Although if airlines fly there, transport (to downtown) will not be as good as at large airports. So prices will be lower. I think low-cost airlines have a great future in China".
A small number of Chinese firms are currently attempting to establish low-cost airlines. None, however, are thought to be able to match Ryanair, or Southwest Airlines.
In 2006, Spring Airlines, a domestic budget carrier, received a fine when it was found to be selling tickets at $13 each. Despite this, the Chinese government is playing it safe in answer to concerns that the country's prime airlines would suffer in the event of foreign low cost carriers gaining more access.
One airline - Air Asia of Malaysia - presently operates several routes to the south of China. Its long-haul derivation - Air Asia X - is planning to fly to alternative cities in northern/eastern China in the future.
"If I encourage this...", said Mr Yang, "...(then) our airlines will curse me. But we're willing to open the door slightly for (low cost airlines), to see how it goes. If we open the door too wide, there'll be too much impact on our airlines, and that's not good. If they are willing to fly to secondary cities, that's fine. It's a good thing."
The Chinese government has injected huge amounts into both modernising China's existing airport network, and constructing new sites. However, a large number lose money, with limited numbers of flights operating to them - given that many are situated away from the major cities. In response, said Mr Yang, 600 million yuan will be invested into regional airports, and 300 million will be provided to the airlines using them.
"(Regional airports) ...give as much of an economic boost as do highways", he stated.
Finally, addressing the issue of money loss, Mr Yang asserted that this was not a huge concern.
"I think airports are public facilities. They are not there to make money," he stressed. "Of course I want more airports and not fewer. But we can't blindly build them. It's a waste."
Source - Airport International's Far East Correspondent
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