The slump in the international aviation market in the wake of the
September 11 terrorist attacks has caused China's civil aviation
industry to lose more than 2 billion yuan (US$240 million)
according to the General
Administration of Civil Aviation of China (CAAC), the industry
watchdog.
In
a report to senior CAAC officials, Chen Xiaoning, director of the
research institute under the administration, said the potential
impact of the terrorist attacks may be more serious than the
countable losses.
In
the four days after the attacks, when the United States shut its
airspace to all air carriers, three Chinese airlines operating
China-US flights lost 33.4 million yuan (US$4 million) in passenger
business. In the cargo transportation business, they lost 40
million yuan (US$4.8 million).
The three airlines are Beijing-based
Air China, Shanghai-based
China Eastern Airlines and Guangzhou-based
China Southern Airlines.
All three have large amounts of debt in Japanese yen, and the sharp
shrinking of US dollars after September 11 made them lose 220
million yuan (US$26 million) in money exchanges, the report
said.
But the international insurance industry was hardest hit by the
terrorist attacks. Most of them transferred much of their cost
burdens to airlines by raising insurance rates dramatically.
Chinese airlines have paid more than 830 million yuan (US$100
million) in increased passenger insurance rates, as well as 187
million yuan (US$22 million) extra to insure their aircraft.
At
the same time, the report said, General Electrics claimed US$100
million in extra charges for the 51 planes the company leased to
Chinese airlines.
Security charges also surged after the attacks, the report
said.
Each plane now has to pay US$50,000 for an advanced cockpit
security system.
China now has 527 planes, and a security system for each one brings
security expenses to millions of US dollars.
Chen said in the report that the attacks have put many large
international airlines on the verge of collapse, casting a negative
effect on China's aviation industry for the long term.
Chen's research will help senior CAAC officials take the necessary
steps to solve the problems.
Bao Peide, CAAC vice-minister, said his administration would keep a
close eye on the development of the world aviation industry.
He
also said he is confident that the Chinese aviation industry will
develop on the right track as long as China's economy maintains its
strength.
Bao's optimism was supported by the Chinese airlines' domestic
performances after the US terrorist attacks.
Deutsche Bank analysts said China Eastern Airlines and China
Southern Airlines, both listed in the New York and Hong Kong stock
markets, saw a 6.9 percent and 12.6 percent passenger increase
respectively in September compared with the same month last
year.
Their cargo transportation also increased by 7.4 percent and 12.6
percent respectively.
(China
Daily November 22, 2001)