Industry Overview
Aerospace and Aircraft
Over the next twenty years, China predicts that its air transportation passenger volume will grow annually by 11%. It will become the world's second largest aviation market and will require an additional 1,790 aircraft to handle the increased volume. Expansion of airport infrastructure will also continue with 49 airports slated for new construction and 701 airport expansion projects under China's current five-year plan, which began in 2006. Furthermore, a new system of regional control centers and full conversion from program to radar based air traffic control will be introduced over the next 5-10 years.
The General Administration of Civil Aviation of China (CAAC) is making efforts to rationalize the country's airlines. It has completed mergers with the "Big 3" (Air China, China Eastern and China Southern) and China's smaller, less profitable airlines. The CAAC is concentrating on expanding the number of smaller, single aisle aircraft while phasing out additional wide-body, twin aisle aircraft in the Chinese fleet. CAAC expects the new airlines to improve operating efficiencies and concentrate on developing a modern "hub-and- spoke" air routing system.
At present, CAAC is drafting the 11th Five-Year Plan and 2020 Vision for the aviation industry. It is expected that the annual growth rate will be 14%. By 2010, the total turnover will be 10 billion ton/km; the annual growth rate for general flight will be 10% and the total general flight volume will be 140,000 hours.
Airports and Ground Equipment
By 2010 (the end of the 11th Five-Year Plan), the China expects to have 186 airports, which includes 3 national hubs, 7 regional hubs, 24 medium hubs, 28 medium airports and 124 small-size airports. The total investment will be $17.7 billion. It is estimated that the number of airports with scheduled airlines will be 260 by 2015.
Along with passenger airport equipment, large growth has been seen in the air cargo sector. New agreements have been signed to add cargo-carrying capacity to three Chinese airlines. With that capacity will come the need for better ground facilities to handle the additional cargo. China also plans to improve aviation security systems and equipment, computer information management, settlement ticketing systems, global distribution systems and E-commerce. Airport retail concessions are also a new concept for Chinese airport authorities. As airports are faced with the challenge of making money they are considering bringing in partners via food and other retail concessions. Finally, safety equipment - including emergency vehicles - continues to be an area of interest for Chinese airport authorities. Priority will be given to foreign investment, which will be directed toward airport infrastructure construction, technology upgrade and management training.
China is a fast-growing market for air traffic control equipment. Over the past 10 years, CAAC has spent approximately $1 billion on air traffic management (ATM) infrastructure improvements. By 2005, China had installed 31 primary radars, 52 secondary radars, more than 1,000 Very High Frequency (VHF) communications systems, over 160 Omnidirectional Range and Distance Measurement Systems (VOR/DMEs), and more than 140 Instrument Landing Systems (ILS). CAAC Air Traffic Management Bureau’s (ATMB) goal over the next 5 years is to improve facilities in the eastern and mid-western sections of the country. The improvements call for a comprehensive data network, new automation-center systems, ground-air voice/data communications, and new enroute radars.
China also plans to introduce ground-to-air communications and automatic dependent surveillance services for international and polar routes in the west. CAAC will reorganize the current airspace structure, reducing the total number of area control centers from 27 to 5 by 2010. In reorganizing the current structure, CAAC will construct two new regional control centers, in addition to the three remaining in Beijing, Shanghai, and Guangzhou.
U.S. Position in the Market
China is a developing country building infrastructure in virtually every area of its economy, including telecommunications, roads, ports and rail. Competitive financing can be a major barrier to success for U.S. firms. The Chinese are sophisticated at playing one competitor against another. While CAAC thinks highly of U.S. products and services, competition continues to be fierce. Political issues between our two countries often have a strong influence on U.S. sales, especially of aviation equipment.
Market Research
Aircraft Parts & Components Market in China
Key Chinese Government Contacts
General Administration of Civil Aviation of China
(CAAC)
Tel: (86-10) 6403-0868
Fax: (86-10) 6403-0868
Website: http://www.caac.gov.cn/E_PubWebApp/index.aspx
CAAC Air Traffic Management Bureau
Tel: (86-10) 6731-8866 x 2252
Fax: (86-10) 6731-8519
Webstie: http://www.atmb.net.cn/
China Aviation Supplies I/E Corporation
Tel: (86-10) 6821-9550
Fax: (86-10) 6568-6902
Webstie: http://www.ceiec.com.cn/en/
Major Shows/Exhibitions
ABACE2007 • Hong Kong • February 6, 7, 2007
Hosted by National Business Aviation Association (NBAA), the
Asian Business Aviation Conference & Exhibition (ABACE2007)
will be located at the Asia World Expo situated adjacent to Hong
Kong International Airport along with a Static Display of
Aircraft at the Hong Kong Business Aviation Center. Over 50
Exhibitors will display the latest airplanes, helicopters,
aviation equipment, and services.
For more information, please click http://www.abace.aero
The 4th Annual China Air Cargo Summit 2007
April 19th –21st, Hyatt Regency Hangzhou, China
http://www.aircargosummit.org/
The 1st Annual China General Aviation (GA) Summit
2007
April 19th-20th, Beijing, China
http://www.generalaviation.com.cn/
The 2nd Shanghai International Aviation-space Technology &
Equipment Exhibition Date: July 5-7,2007
Venue: Shanghai Exhibition Center
http://www.ate-expo.com/
Asia Aerospace 2007
International Expo & Congress
September 3rd-6th, 2007
Asia World Expo, Hong Kong
http://www.asianaerospace.com/
Air Freight Asia 2007 Conference & Exhibition
Asia
September 3rd-6th, 2007
Asia World Expo, Hong Kong
65 6481 3880
http://www.airfreightasia.com/
Aviation Expo / China 2007 (12th Event) Civil & Military,
including Airport & Air Traffic Control
Date: September 19-22,2007
Venue: China International Exhibition Center, Beijing
http://www.cpexhibition.com/aviation/
2007 MRO Asia Conference & Exhibition
October 17th-18th, 2007
Shanghai Everbright Convention & Exhibition Center, Shanghai,
China
http://www.aviationweek.com/conferences/masmain.htm
U.S. Commercial Service Contact Information in China for Aerospace Industry
Beijing Office:
Tel: (86-10)8529-6655
Fax: (86-10)8529-6558/9
Gwen Lyle
Zhang Qiurong
Shanghai Office:
Tel: (86-21)6279-7930
Fax: (86-21)6279-7639
Kevin Chambers
Guangzhou Office:
Tel: (86-20)8667-4011
Fax: (86-20)8666-6409
Lena Yang
Chengdu Office:
Tel: (86-28)8558-3992
Fax: (86-28)8558-3991
Eric Wolff
Cui Shiyang
Shenyang Office:
Tel: (86-24)2322-1198x8142
Fax: (86-24)2322-2206
Liu Yang