The Growth of Passenger Volume in Recent Years
In the first half of 2018, the passenger volume of airlines registered in China reached 304 million on domestic and foreign routes, compared with 278 million in the first half of 2017. In the past five years, the total passenger traffic of Chinese airlines has been growing at an alarming rate. In 2013, the total passenger transport volume was 413.5 million, which increased by 6.6% to 440.7 million in 2014. The figure increased by 9.8% in 2015 and 8.7% again in 2016. In 2017, the total number of passenger trips reached 589 million, increasing by 12% from last year. The booming domestic market has been a major source of traffic growth, with the number of visitors from the mainland rising by 45% to 523 million between 2013 and 2017. At the same time, the growth of overseas routes has also boosted the total number of international passengers by 25%.
Remarkable Achievements and International Expansion
Since 1980s, civil aviation in China has attained remarkable achievements, making tremendous contributions to national economic construction and social development. By the end of 2017, the total transportation turnover of the industry had reached
108.3 billion tons, 550 million passengers, and 7059 million tons of freight and mail, respectively 362 times, 239 times and 110 times of that of 1978. The proportion of passenger transportation in the national comprehensive transportation system has risen from 1.6% in 1978 to 29% in 2017. Meanwhile, China civil aviation constantly promotes the marketization of the industry. The competition and vitality of the market help meet the growing needs of the people. Up till now, there are in total 60 air transport airlines (51 passenger airlines and 9 cargo airlines), forming a multivariate, orderly competitive market pattern. In recent years, there appears more and more reginal airlines specializing in reginal air transport and low-cost airlines, which greatly meet the diversified needs of the customers.
International air transport has also come a long way. By the end of 2017, China had 31 airlines operating 810 international routes, carrying 55.44 million passengers. To serve the national strategy, Chinese airlines have opened 95 international routes in 43 countries along the “Belt and Road” route. In the Sino-U.S. route, the Chinese company’s share of the shipping capacity reached 58%, and in the Sino- European route, the share of the shipping capacity reached 62%, both in a relatively advantageous position. At the same time, China’s civil aviation boldly introduced a total of 135 foreign airlines operating 814 international routes from 138 overseas cities to China’s 56 cities. At the same time, domestic airlines also enhance the level of internationalization and international competitiveness by joining the international aviation alliance, joint operation, code sharing, investment cooperation and a series of other ways, welcoming foreign civil aviation enterprises to participate in the construction and development of civil aviation in China.
With the improved life standard of Chinese people, outbound travelling can not only stimulate tourism but also promote the expansion of air transport demand, serving as a new increasing factor for national economy.
Future Civil Aviation Development Trends in China
The market space in the next 20 years is about 1 trillion us dollars. According to the forecast of Boeing 2017, China will need 7,240 new aircraft over the next 20 years, the total value of which is US$1.1 trillion. By 2036, China’s main aircraft market will need 6,910 new planes, accounting for 95% of the total demand for new planes. China will become the world’s first aviation market worth trillions of dollars. The estimated new delivery of 150 regional aircraft, is expected to reach US$10 billion. COMAC forecast in 2017 that China would deliver 8,575 passenger jets worth about US$1210.4 billion over the next 20 years, including 7,478 trunk liners and 1,097 regional jets.
COMAC C919: A Milestone in the New Era of Civil Aviation in China
On May 5, 2017, the first flight of the China-made large aircraft C919 was successfully completed. The COMAC C919 is a narrow-body twinjet airliner developed by Chinese aerospace manufacturer COMAC. The development programme was launched in 2008, and the production of the prototype began in December 2011. It rolled out on November 2, 2015 and the aircraft’s maiden flight was on May 5, 2017. Its first commercial deliveries are expected in 2021 to China Eastern Airlines. As of August 31, 2018, COMAC has 1,008 commitments including 305 firm orders, mostly from Chinese leasing companies or airlines with the exception of GE. For a long time, Boeing and Airbus are in an absolute advantageous and monopoly position in the mainline aircraft market. They together have a combined market share of more than 97% in China. With the C919’s emergence, it will compete directly with the best-selling B737 and A320 models of Boeing and Airbus, two aviation giants, and is expected to leverage the huge market in the future.
The Evolution and Profiles of CAAC Airlines
Civil Aviation Administration of China
The former General Administration of Civil Aviation of China, most widely recognized by the initials CAAC, was an administrative body under the State Council of the People’s Republic of China. It oversees civil aviation in mainland China.
CAAC emerged as an international airline operator following a 1980 instruction by Deng Xiaoping to begin planning for civil
flights. On March 5, CAAC formed an airline operation division.
In 1987, the aviation regulation division and the airline operation division were separated, and the airline division further divided into Air China China Eastern Airlines, China Southern Airlines, China Northwest Airlines, China Northern Airlines and China Southwest Airlines, each named after the geographic region of the location of their headquarters and main operation areas. In 1988, the monopoly was broken up and CAAC Airlines was split into six regional airlines, which later consolidated into China’s Big Three airlines: Air China, China Southern Airlines, and China Eastern Airlines.
- Air China
Air China is the People’s Republic of China’s state owned and second-largest commercial airline and is based in Beijing. It is the flag carrier and the only airline to fly the PRC national flag on its entire fleet. Its logo is a phoenix in the form of the abbreviation VIP. Its main base is Beijing Capital International Airport.
- China Eastern Airlines
China Eastern Airlines transports passengers and cargo to some 120 destinations in China and about 20 other countries, including the US. It operates a fleet of about 195 aircraft, including Airbus and Boeing models, mainly from its hub in Shanghai. The carrier is one of China’s three largest, along with Air China and China Southern Airlines. China Eastern Airlines extends its network via code-sharing agreements with carriers such as Air France.
- China Southern Airlines
One of China’s top three airlines, along with China Eastern Airlines and Air China, China Southern Airlines operates a fleet of about 260 aircraft (mainly Boeing
and Airbus jets) from its hub in Guangzhou and about 20 regional bases. It serves more than 140 destinations, including about 120 throughout China and more than 20 in other countries, primarily in the Asia/Pacific region. China Southern Airlines extends its international network via code-sharing partnerships with carriers such as Delta Air Lines, KLM, and Japan Airlines.
