CAAC suspends approval of new airlines until 2010, says industry has 'developed too fast'
With an eye on next summer's Olympic Games and the potential safety issues associated with saturated skies, CAAC yesterday announced that it will not approve any new entrants before 2010 and will impose stricter conditions and procedures for new carriers after that in order to slow the rapid growth of commercial aviation.
In recent years, China's air transport industry has maintained an annual growth rate of 16%. In the 2006 first half, total volume reached 13.83 billion ATKs, up 16.1% over the year-ago semester. Passenger traffic rose 17.5% to 74 million while cargo traffic jumped 11.5% to 1.6 million tons.
This year China has witnessed a rapid increase in new airlines. HNA Group and its Hainan Airlines subsidiary launched Tianjin-based regional Grand Xinhua Express in April (ATWOnline, April 2). Shenzhen Airlines and Mesa Air Group will launch Kunpeng Airlines in Xi'an with three CRJ200s at year end, and last week AVIC I confirmed that the new regional carrier it expects to launch this year has been approved by CAAC.
Local analysts have pointed out that the industry suffers from a severe shortage of professional technicians, especially pilots and experts in airspace and airport infrastructure. In addition to the suspension of new licenses, CAAC will aim to remedy that situation by controlling airlines' capacity increases and cutting 48 domestic flights operating during peak hours from Beijing beginning Aug. 15.
The regulatory body said there will be some exceptions. It will adopt a "supportive" policy and green-light new cargo airlines and new carriers that hire foreign pilots, operate at night, use Chinese-built aircraft and operate in the west or northeast part of the country.
With the skies over eastern China nearly full, airlines are adopting a Go West strategy. In June, China Southern Airlines started its Chongqing Airlines subsidiary while HNA's Lucky Air began operating Chongqing-based West China Airlines (ATWOnline, June 1). Atwonline
With an eye on next summer's Olympic Games and the potential safety issues associated with saturated skies, CAAC yesterday announced that it will not approve any new entrants before 2010 and will impose stricter conditions and procedures for new carriers after that in order to slow the rapid growth of commercial aviation.
In recent years, China's air transport industry has maintained an annual growth rate of 16%. In the 2006 first half, total volume reached 13.83 billion ATKs, up 16.1% over the year-ago semester. Passenger traffic rose 17.5% to 74 million while cargo traffic jumped 11.5% to 1.6 million tons.
This year China has witnessed a rapid increase in new airlines. HNA Group and its Hainan Airlines subsidiary launched Tianjin-based regional Grand Xinhua Express in April (ATWOnline, April 2). Shenzhen Airlines and Mesa Air Group will launch Kunpeng Airlines in Xi'an with three CRJ200s at year end, and last week AVIC I confirmed that the new regional carrier it expects to launch this year has been approved by CAAC.
Local analysts have pointed out that the industry suffers from a severe shortage of professional technicians, especially pilots and experts in airspace and airport infrastructure. In addition to the suspension of new licenses, CAAC will aim to remedy that situation by controlling airlines' capacity increases and cutting 48 domestic flights operating during peak hours from Beijing beginning Aug. 15.
The regulatory body said there will be some exceptions. It will adopt a "supportive" policy and green-light new cargo airlines and new carriers that hire foreign pilots, operate at night, use Chinese-built aircraft and operate in the west or northeast part of the country.
With the skies over eastern China nearly full, airlines are adopting a Go West strategy. In June, China Southern Airlines started its Chongqing Airlines subsidiary while HNA's Lucky Air began operating Chongqing-based West China Airlines (ATWOnline, June 1). Atwonline