China’s aviation industry soars

According to the Civil Aviation Administration of China (CAAC), the mainland’s aviation industry recorded a profit of RMB54.8 billion (US$8.45 billion) in the first 11 months of 2015, an increase of 76.2 per cent year-on-year – and the most profitable year in its history. This was in part due to low oil prices, which allowed for lower ticket prices and consequently stimulated demand by an ever-growing middle class eager for international travel. Mainland China’s commercial fleet has grown from 1,598 planes five years ago to 2,645 today, with average year-on-year growth in passenger traffic over the last five years at 10.4 per cent, according to an article in the South China Morning Post. Several start-up airlines were formed in 2015, including Guilin Air and Colourful Guizhou Airlines, which was scheduled to begin flights on December 28, according to its CEO Zhai Yan. More airlines are expected to be launched in 2016, and aircraft leasing companies are also on the rise – within China’s slowing economy the aviation sector is considered a standout investment opportunity. The CAAC is actively encouraging airlines to seek out international business and apply for international traffic rights, stating that the industry’s target in 2016 is to transport 485 million people. For more information visit caac.gov.cn (Chinese language only) Jeremy Tredinnick