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Domestic travel boom brings more startup airlines, jet orders

11/01/2016| 2:09:15 PM|

Newly built airports in lower tier Chinese cities helped stoke an 8.2% rise in domestic China passenger traffic last year, according to IATA.

More than 10 Chinese carriers have begun flying since Beijing's aviation regulator relaxed a six-year suspension on new airlines licences in 2013. 

They now operate or have ordered at least 100 jets made by Europe's Airbus, U.S. giant Boeing and Embraer SA of Brazil.

Such breakneck expansion might give cause for alarm in mature aviation markets. But China's new breed of carrier is focusing on second and third-tier Chinese cities. 

Newly built airports in lower tier cities helped stoke an 8.2% rise in domestic China passenger traffic in 2015, according to the International Air Transport Association.

While state carriers like Air China, China Eastern Airlines and China Southern Airlines dominate for now, the newcomers have deep-pocketed backers like conglomerate HNA Group, plus support from local authorities as well as Air China itself.

Some industry experts caution that China's blossoming aviation market runs the risk of a price war, as the CAAC relaxes restrictions to allow airlines to set ticket prices for more routes.

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TAGS: airlines | airports | CAAC | aviation | China
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