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Volume 14,Issue 3 Autumn 2012

Why nearly 80 percent airports running in the red did not stop the upsurge of airport construction?



According to the public data, 134 of China’s 183 airports encountered a total loss of 2.9 Billion Yuan in the year of 2012. Among them, regional airports took more than 80 percent. Data shows that 70 percent airports in China with an annual throughput less than 1 million passengers in the year of 2013. One airline began to operate a route from Changsha (Provincial capital of Hunan) to Hunan’s small city from this February and only had 425 passengers in the flowing 2 months.

How did these small airports maintain their operations? Experts mentioned that for some cities, 20% routes’ passengers are from government functionaries’ travel or the government may charter flights. “Although most regional airports under deficit, the examination and approval authority of the GA airport delegated to local government may push a new round of constructions” Said Jian Zou, Vice-Professor from Civil Aviation Management Institute of China.

Reporter recognized that, some local governments are keen on airport construction regardless of the big loss, that because airport may show a city’s level and comprehensive strength, for another reason, the infrastructure construction may improve a city’s GDP.

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