Plans For 45 Airports, 700 New Aircraft

It would seem that China's "investment" in Cirrus Design is just a drop in the bucket when it come to the country's planned growth in the aviation sector over the next five years.

A report in China Daily indicates that the country plans to invest over $228 billion in aviation during that period, including the construction of 45 airports and adding some 700 commercial aircraft to its fleet. Li Jiaxiang, head of the Civil Aviation Administration of China (CAAC), told a news conference Tuesday that the airport construction process will be accelerated over the next five years, even with some currently-operating airports reporting "small" financial losses. He said that airports are "public infrastructure," and that the construction plans should not be "profit-driven."

Analysts say China's commercial airline sector is booming, with passenger traffic up 15.8 percent over last year. Li said the CAAC is encouraging development of privately-owned airlines to complement the state-run carriers. The agency is poised to accept three applications for new airlines established by private companies. That move is to make inroads into what Li sees as an advantage enjoyed by non-Chinese carriers in the international travel market.

FMI: www.caac.gov.cn