Industry Overview
After more than ten years of double-digit annual growth, China has emerged as the world's second largest aviation market.
Driven by rapid economic growth and increased demand for air travel, China hopes to build 42 more airports by 2010. If it does, China will have 186 airports, including 3 national hubs, 7 regional hubs, 24 medium hubs, 28 medium-sized airports and 124 small-sized airports. The number of airports serviced by scheduled airlines will approach 260 by 2015. The commercial air fleet will grow along with the number of airports, up from the current 1100 aircraft to an estimated 1,600 by 2010. It is forecasted that the Chinese aircraft fleet will increase four times, reaching about 4460 planes by the end of 2026.
The General Administration of Civil Aviation of China (CAAC) is making efforts to rationalize the country's airlines. It has completed mergers with the "Big 3" (Air China, China Eastern and China Southern) and China's smaller, less profitable airlines. The CAAC is concentrating on expanding the number of smaller, single aisle aircraft while phasing out additional wide-body, twin aisle aircraft in the Chinese fleet. CAAC expects the new airlines to improve operating efficiencies and concentrate on developing a modern "hub-and- spoke" air routing system.
At present, CAAC is drafting the 11th Five-Year Plan and 2020 Vision for the aviation industry. It is expected that the average annual growth rate will be 11% for the following decage. By 2010, the total turnover will be 10 billion ton/km; the annual growth rate for general flight will be 10% and the total general flight volume will be 140,000 hours.
U.S. Position in the Market
China is a developing country building infrastructure in virtually every area of its economy, including telecommunications, roads, ports and rail. Competitive financing can be a major barrier to success for U.S. firms. The Chinese are sophisticated at playing one competitor against another. While CAAC thinks highly of U.S. products and services, competition continues to be fierce. Political issues between our two countries often have a strong influence on U.S. sales, especially of aviation equipment.
Key Chinese Government Contacts
General Administration of Civil Aviation of China
(CAAC)
Tel: (86-10) 6409-1247
Fax: (86-10) 6401-6918
Website: http://www.caac.gov.cn/E_PubWebApp/index.aspx
CAAC Air Traffic Management Bureau
Tel: (86-10) 8778-6051
Fax: (86-10) 8778-6055
Webstie: http://www.atmb.net.cn/
China Aviation Supplies I/E Corporation
Tel: (86-10) 6821-9550/6568-6612
Fax: (86-10) 6568-6902
Webstie: http://www.casc.com.cn/english/index.htm
Other resources
Links to non-Commercial Service organizations are provided solely as a convenience to our users. The Commercial Service makes no representations about the accuracy or suitability of the information provided on the following web sites. The FCS is not responsible for the content of the individual organization webpages found through these links, and their inclusion here should not be understood as an endorsement of these organizations.
CAAC news (in Mandarin)
Center of Aviation Safety Technology
AVIC I (China Aviation Industry Corporation I)
AVIC II (China Aviation Industry Corporation II)
Civil Aviation Industry Analysis Report (in Mandarin)
Major Shows/Exhibitions
This section provides a listing of upcoming aerospace and aircraft-related events in China, including industry shows and trade missions. While FCS China is directly involved with some of these events (indicated), the others listed here have no direct relationship with the FCS and are listed solely as a convenience to our users.
For more information, please contact the organizing group as listed in the event description. Verify the information before making any commitments - we are not responsible for accuracy of information or changes in events' schedules.
Airport Development & Operations Summit
Date: June 17-18
Venue: Ever-bright Exhibition Center Grand Hotel, Shanghai,
http://www.lnoppen.com
2008 China General Aviation Forum
Date: June 23-25, 2008
Venue: Shanghai
http://www.ChinaCivilAviation.com
The 7th China International Aviation and Aerospace
Exhibition
November 4-9, 2008
Venue: Zhuhai, China
http://www.airshow.com.cn/en
The U.S. and Foreign Commercial Service plans to organize an
Aerospace Executive Service at this show, the only
Airshow in China recognized by the Chinese government and a “must
attend” for the entire Chinese industry.
U.S. Commercial Service Contact Information for Aerospace
The U.S. Commercial Service offers a broad array of market entry services to U.S. companies in the aerospace industry. Please refer to the following relevant contacts for additional information on how we can help you expand your business in China.
Beijing Office:
Tel: (86-10)8529-6655
Fax: (86-10)8529-6558/9
Gwen Lyle
Zhang Qiurong
Shanghai Office:
Tel: (86-21)6279-7930
Fax: (86-21)6279-7639
Kevin Chambers
Guangzhou Office:
Tel: (86-20)8667-4011
Fax: (86-20)8666-6409
Lena Yang
Chengdu Office:
Tel: (86-28)8558-3992
Fax: (86-28)8558-3991
Eric Wolff
Cui Shiyang
Shenyang Office:
Tel: (86-24)2322-1198x8142
Fax: (86-24)2322-2206
Liu Yang