China's aviation industry will soar by double digits due to the
country's hosting the Olympic Games, according to its industry
regulator.
Domestic carriers plan to fly 210 million passengers this year,
a 14-percent jump from a year earlier, while cargo and mail volume
may grow 12 percent to 4.45 million tons, the General
Administration of Civil Aviation said on its website.
Five million overseas visitors and more than 120 million
domestic travelers are expected to visit Beijing this year,
according to the organizers of the Beijing Olympic Games.
Analysts predicted that the event will generate revenue of five
billion yuan (US$689 million) to the domestic aviation
industry.
In the first three quarters of last year, domestic carriers and
airports earned 17 billion yuan in profit, rising 74 percent from a
year earlier.
However, Li Jiaxiang, CAAC's new head, has noted that the profit
came mainly from fuel surcharges and the appreciation of the
yuan.
"Domestic carriers must remain cautious as they are still in the
red if not for the two factors," Li said in Beijing last week.
He said the regulator will not approve any application for a new
airline before 2010 and will also be strict on the introduction of
new aircraft.
"We should fully consider the airlines' capability and safety to
prevent the industry from overheating," he said.
The aviation industry will see a total fixed-asset investment of
36 billion yuan this year, against last year's 26 billion yuan,
according to the regulator.
(Shanghai Daily January 15, 2008)
