Chinese Airport Market Development

Neil Dave, Consulting Analyst

Aerospace & Defense

18th December 2012

ChineseChinese Airport Airport Market DevelopmentMarket Development

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18th December 2012

Focus Points

• Airports in China: Overview

• Structure of Airports Industry in China

• Major Challenges & Drivers faced by the Airports Industry in China

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• Regional Airport Market Development Outlook in China

• Conclusion and Key Takeaways

Chinese Airports Industry – Overview

• As of 2011 end, China had a total of 180 airports for a comparatively much larger

population of close to 1.34 billion people.

• China’s airports market is one of the world’s largest, contributing more than one-third of

the global development spending for airports.

• However, the rate of airport development has been outpaced by the rate of passenger

travel, thus, leading to overcapacity at airports.

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travel, thus, leading to overcapacity at airports.

• To cater to these issues, the country plans to build 73 new airports and scrap off 9

existing airports to the bring the total number of airports up to 244 by 2020.

• An increasing number of foreign companies are expected to invest in china airport

development programs over the next decade.


• China had a total of 180 Airports in 2011

contributing to a total of 620.5 million

passengers in passenger throughput.

• Airports in China are mainly divided into three

main Tiers: Tier I, Tier II and Tier III.

• Tier I airports: Three hub airports—Beijing

Capital International Airport, Shanghai

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Capital International Airport, Shanghai

Pudong Airport, and Guangzhou Baiyun

Airport.

• Tier II airports: 29 major airports with annual

passenger throughput of five million and/or

more, located in Chengdu, Kunming, Xi’an,

Urumqi, Wuhan, and other cities.

• Tier III airports: All other airports with annual

passenger throughput of less than five million.Source: Frost & Sullivan analysis.


• Airports in China are classified under six provinces, namely; North China, Northeast China,

East China, South Central China, Southwest China, Northwest China.

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Source: Frost & Sullivan analysis.

Chinese Airports Industry: Market Drivers & Restraints

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Airport Development by Region – North China

Number of Airports

• 24 Airports

Provinces covered

• 5 Provinces

Passenger Traffic (2011)

• 18 % of total passenger throughput in China

North China

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18 % of total passenger throughput in China

Airport Projects (2011–2020)

• 7 Greenfield Constructions

• 1 Airport Replacement

• 1 Airport Conversion

• 5 Brownfield Expansions


Airport Development by Region – Northeast China

Number of Airports

• 19 Airports

Provinces covered

• 3 Provinces



Northeast China

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• 2 Airport Conversions



Airport Development by Region – East China

Number of Airports

• 39 Airports

Provinces covered

• 7 Provinces



East China

9




• 2 Airport Replacements




Airport Development by Region – South Central China

Number of Airports

• 31 Airports

Provinces covered

• 6 Provinces



South Central China

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Airport Development by Region – Southwest China

Number of Airports

• 37 Airports

Provinces covered

• 5 Provinces



Southwest China

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Airport Development by Region – Northwest China

Number of Airports

• 30 Airports

Provinces covered

• 5 Provinces



Northwest China

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• 2 Airport Relocations




Conclusion : Key Takeaways

2Traffic handling capacity constraints faced by Chinese airports are a major factor

driving the development of airports in China.

Regulatory reforms being undertaken by the government will attract foreign

1There is a rising demand for domestic air-travel as affordability and living standards increase.

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3Regulatory reforms being undertaken by the government will attract foreign

investors and speed up commercialization of airports.

4Development of existing hub airports to increase traffic handling capacity will be a

focus over the next decade.

5Certain Tier 2 Airports will also undergo expansion programs to prepare for

increased traffic as a result of the smaller cities being better connected.

Chinese Airports Market Development – Research Service

This research service presents a consolidated and in-depth insight on the airports industry and future airport

development plans in China with in-depth market analysis by market segment & competitive vendors.

Qualitative Data� External Challenges

� Segment-wise Analysis

� Regional Analysis

� Analyst views & insight on the

market

Index

�Market Overview

� Total Airports Market

• External Challenges: Drivers and Restraints

• Forecasts and Trends

• Demand Analysis

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market• Demand Analysis

� CEO’s 360 Degree Perspective on the Airports Industry

� Airports Segment Breakdown by Regions in China

�Airport Growth Indicators

�Airport Growth Analysis

�Short & Long Term Airport Opportunities

To get a complimentary executive summary of this research service, email To get a complimentary executive summary of this research service, email [email protected]@frost.com

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Today’s Presenter

Neil Dave, Consulting Analyst

Frost & Sullivan

Neil is a consulting analyst with the Aerospace and Defense practice at Frost &

Sullivan. He works with clients on market strategy, best practices, opportunity

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For any other enquiries, email us:

[email protected]

Sullivan. He works with clients on market strategy, best practices, opportunity

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Aerospace & Defense Industry as well as other industries which include ICT,

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Chinese Airport Market Development