China is building 8 new airports a year

Air China 2018

Air China YL921 2845 (BEJ) 737-800 Exteriors (Boeing Dreamscape, 2009)

This article is brought to you thanks to the strategic cooperation of The European Sting with the World Economic Forum.

Author: Emma Charlton, Writer

China will become the world’s largest aviation market by 2022, according to the International Air Transport Association, as an expanding middle class and government support for the sector fuel demand for flights and airport construction.

The five charts below show how demand is growing. The first chart illustrates the International Air Transport Association’s prediction that China will add 921 million new passengers by 2036, taking total passengers to 1.5 billion. That compares with 1.1 billion in the US.

Image: International Air Transport Association

To cope with the surge in passengers, the world’s second largest economy plans to build 74 new civil airports by 2020, taking the total to 260. That’s up from 175 in 2010, and amounts to more than eight new airports per year. The data on new airports was revealed in the Civil Aviation Development 13th Five-Year Plan, released by the Civil Aviation Administration of China.

Image: Statista, the Civil Aviation Administration of China

The development underscores how changes in the makeup of China’s population are set to ripple around the globe. The nation’s economic prosperity has resulted in income growth for much of its population, bolstering the middle class. Thirty-five percent of the population is projected to be in the upper-middle-class bracket or better by 2030, up from 10% in 2015.

Some of the more remote regions, including Inner Mongolia, Guizhou, Xinjiang, Sichuan, and Heilongjiang, have seen five or more airports built in the last decade, according to research from DBS Group.

Image: DBS Group

The growth has been in both domestic and international travel and, as this graph shows, there’s room for more expansion:

Image: DBS Group

All that means the nation’s three largest airlines: Air China, China Southern Airlines, and China Eastern Airlines are going to become even bigger international players, challenging the dominant US airlines: American, Delta and United and competing for passenger numbers.

This chart shows the biggest airlines measured by revenue passenger kilometres, RPK, a measure of passenger volumes.

Image: DBS Group

The effects won’t just be felt in China, with increased airline competition potentially pushing down prices and passengers getting used to stopping off in Guangzhou, rather than one of the more traditional major airports for transfers.

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