CHINA : Chinese cargo carriers risk marginalisation

China’s recently appointed acting director of its civil aviation administration, Li Jiaxiang, has expressed concern about the future of the country’s domestic cargo airlines who he says are losing market share oninternational routes. In 2000, domestic carriers had a 44 per cent share in the international cargo market but the figure droppedto 18 per cent […]


China’s recently appointed acting director of its civil aviation administration, Li Jiaxiang, has expressed concern about the future of the country’s domestic cargo airlines who he says are losing market share oninternational routes.

In 2000, domestic carriers had a 44 per cent share in the international cargo market but the figure droppedto 18 per cent last year.

The percentage of passenger transport on international routes has also declined, from 56 per cent in 2000 to44 per cent last year.

"There is a danger that China’s cargo airlines are being marginalised in the world air cargo market," he saidaccording to a China Daily report.

The General Administration of Civil Aviation of China (CAAC) in 2002 set the goal that the country should develop a strong civil aviation industry by 2020. The short-term goal for 2010 is to have 1,550 planes and 190 airports, handling 270 million passengers and 5.2 million tonnesof cargo.

Last year, the industry transported 185 million passengers and 3.6 million tonnes of cargo. With everything going according to plan, the industry reaped a profit of 17 billion yuan(US$2.4 billion).

But much of this can be attributed to a combination of fuel surcharges, exchange rate gains and the fact the domestic market is protected from competition from international carriers,Li said.