Air traffic volume in China to rise to 840 million by 2026
China's domestic aviation numbers are forecast to double and reach 840 million by 2026, with growth averaging 6.8% per annum, projected international aircraft leasing company Avolon.
China's domestic aviation market will continue to experience strong and consistent growth for at least the next decade, according to a White Paper titled ‘The Land of Silk and Money’ by Ireland-based international aircraft leasing company Avolon, a wholly-owned subsidiary of HNA-affiliated Bohai Capital Holding.
Key findings of the White Paper include:
* Domestic air passenger numbers are forecast to double and reach 840 million by 2026, with growth averaging 6.8% per annum.
* Low cost carriers will continue to achieve the highest growth rates , increasing traffic volume by 38% per annum in the five years to 2015, while the “Big 3” airlines will add the largest number of passengers to their networks.
* Growth in China’s domestic airline industry is influenced by a combination of economic growth, urbanisation, the rise of consumerism, increasing disposable income and the availability of more, and more affordable, low cost airline capacity.
* Chinese airlines continue to experience strong consumer demand which, together with a gradual relaxation in the regulatory environment, has fostered the development of a broad-based airline community, with multiple new entrants and a growing LCC sector.
* The Chinese Government has a current investment budget of USD 11.7 billion to upgrade current airports, improve ATC facilities and increase airline fleet growth. They also plan to complete the construction of 60 new airports by 2020.
The second paper in the China aviation white paper series, to be published in May 2017, will focus on China’s international inbound and outbound travel markets and the future fleet requirements of China’s airline industry.
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