7 MAY 2012

Index


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Article from BTNews 7 MAY 2012

OAG and China

China is now at the forefront of aviation expansion.  In a review OAG, the airline data specialist, has looked at the situation with a detailed analysis following the Routes Development conference in Chengdu.

OAG says that China has led airline expansion over the previous decade, but that challenges in passenger yield and fuel costs may have slowed expansion plans.  Looking at the development of capacity from the two main Chinese airports (Beijing and Shanghai) on long haul services, the line appears to be diverging from trend.  Shanghai seats to the US are slowing (just 2%) and growth in the Beijing expansion to the US has stopped and is starting to decline (-3%).

Capacity between Shanghai and Europe is also continuing to grow, though the pace of expansion is slowing too. 

China’s expansion of seat capacity to international markets in general will increase by 14% for May, suggesting a more diversified expansion away from the two main centres.  However, expansion to China is significantly stronger than the Asian long haul market in general.  Despite growing economies and deliveries of aircraft to local carriers, some Asian markets are clearly struggling to maintain a growth trajectory – capacity growth between Asia/Pacific and Western Europe is zero for May 2012, for example. www.oag.com

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