Shanghai Pudong Airport
BEIJING, May 30 (GCTL) - China is planning to build up an aviation network where passenger and cargo are fed from hub airports to smaller airports to support their development, Director of Civil Aviation Administration of China (CAAC) Li Jiaxiang was quoted as saying in a Xinhua report at a recently held China Civil Aviation Development Forum.
While admitting that there are many structural problems in China's aviation industry, where a mechanism of collaborations between international and regional hubs, major airports and feeder ones have not yet developed, Li said small and medium airports' services cover over 70% of the country, making trillions of renminbi's contribution to the local economy, and they should be judged from these functions and not simply from the losses they are making.
Regarding concerns about losses of small and medium airports in China and whether the country has built more airports than necessary, Li said that this was a misunderstanding about the strategic status and function of the aviation industry in China, pointing out that it is a common puzzle across the world for small and medium airports to keep making profit, even in developed countries. As of end 2011, China had 180 airports with a total profit of CNY5.3 billion (US$835.4 million). Of these 135 recorded loss, which totalled to CNY2 billion and 119 of them were small and medium ones, taking up 87% of the total.
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