CHINA. The latest Civil Aviation Administration of China (CAAC) annual industry working conference has confirmed 25 key projects related to airport facility expansion in China for 2004, which include several new projects with a retail spin-off.
Among these programmes is the expansion of Beijing Capital International Airport, seen as one of the most important projects with the Olympic Games being held in Beijing in 2008. This construction will begin in March and is planned for completion by the end of 2007. It includes a new passenger terminal and a third runway. Total handling capacity will reach 68 million passengers after the expansion.
Also included in the CAAC plan are 12 specific projects to be completed in 2004. They include the new Guangzhou Baiyun Airport, Qingdao Airport expansion, Beijing Capital International Airport terminal 1 renovation, Xinjiang Hetian Airport expansion, Jingangshan Airport expansion, the Xi’an Airport Category D Procedure Project, Urumchi Airport Category D procedure Project and new regional air traffic control centres.
Projects extending into 2005 and beyond include the Chongqing Airport terminal expansion, Changchun Airport and Xining Airport expansion.
Five new projects were put forward for financing for the first time include the Beijing Capital Airport expansion and phase II expansion of Shanghai Pudong Airport. The Kunming New Airport and Wuhan Airport expansion also go forward into the initial planning phase.
Meanwhile, China plans to gradually reduce the level of airport construction fees paid by domestic airlines to ease financial burdens on loss-making mainland carriers. Domestic carriers are currently required to submit 5% of revenues generated by domestic flights and 3% of revenues generated by international flights to a special airport construction fund controlled by the CAAC.
CAAC said it was looking to absorb airport construction fees into the cost of the air ticket this year, to make the system more convenient for passengers.
China began levying airport construction fees on passengers in March 1992, with travellers paying CNY50 (US$6) extra for each domestic flight and CNY90 (US$11) extra for each international flight.
