China Plans For Aviation Growth

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Key Takeaways:

  • China plans to invest $11.9 billion by the end of 2019 in aviation infrastructure expansion, primarily focusing on airport construction and upgrades.
  • This investment aims to stimulate growth in the general aviation sector, improve transportation, and create jobs.
  • The government is supporting the development of the aviation industry and plans to open up low-altitude airspace, although state oversight remains significant.
  • Despite joint ventures with Western companies, growth in China's general aviation sector has been slow.
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Chinese officials plan to invest $11.9 billion by the end of this year to expand aviation infrastructure, according to a recent report from Xinhua, the country’s official press agency. Most of the investment will go to airport construction, with 11 key new projects planned and 52 upgrades to existing facilities. “The general aviation sector, especially aircraft research and manufacturing, has became a hot spot of both industrial upgrading and social concern,” said Feng Zhenglin, head of the Civil Aviation Administration of China. The goal is to foster new growth sectors, improve transportation, and boost employment, according to a statement from a government executive council. In 2015, the CAAC allotted $80 billion for 193 projects.

China’s cabinet said last week it would support developing the country’s aviation industry and opening up low-altitude airspace for civil aircraft, according to Reuters. Officials have relaxed some restrictions on civil flight in recent years, but there is still a lot of state oversight compared to what’s the norm in Western countries. Flight plans have to be approved in advance, a process that can take several days. Western companies, such as Cessna, Diamond Aircraft, and Pilatus, have created joint ventures with Chinese partners to produce airplanes there, but so far GA growth has been slow.

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