Last week, the Civil Aviation Authority of China (CAAC) published the country's new five-year air transport development plan. This plan sets the tone for the development of the aviation sector throughout 2022. Indeed, air transport regulator says China will focus on expanding domestic flights in 2022. The restoration of international airlines is only planned forbetween 2023 and 2025.
According to the transport plan reported by Reuters, for the period 2021-2022, China will focus its efforts on controlling and preventing Covid-19. It also promises numerous support measures for its airlines, so that the "development dynamic" can continue in the years to come.
"The period from 2023 to 2025 is a period of growth," said CAAC.. " The focus is on expanding the domestic market, restoring the international marketThe aim is to achieve this through a combination of measures, such as freeing up the impact of reforms and improving the level of openness.
Domestic transport should help Chinese airlines to remain resilient
This announcement will therefore affect the entire airline industry, foreign and Chinese companies. However, the latter should suffer less from this strategy because of theenormous potential of the domestic market. According to OAG statistics, the number of seats offered by the three Chinese aviation giants, Air China, China Eastern and China Southern, was down by -5.2%, -5.9% and -3.7% respectively in December 2021 compared with 2019.
OAG even notes that the company Shenzhen Airlines has become the country's fourth-largest airline in terms of capacity, with growth of 40% in December. Between December 2019 and 2021, it will post growth of 2.9%.
However, a resurgence of the virus in certain Chinese cities has had a negative impact since the end of the year.. For the week of 10 January 2022, OAG recorded a 13.4% drop in supply. Compared with the week of 6 January 2020...
This slowdown in domestic air travel was triggered by the strict "zero Covid" policy.. The authorities have even reinforced the latter with In the run-up to the Beijing Winter Olympics in February. Many flights have been suspended as a result.
Internationally, airlines continue to operate an average of one flight a week to a handful of Chinese cities. As for Hong Kong, the airport has suspended flights with around ten countries (including France). China has also banned transit passengers from 150 countries.. This latest measure is in force from 15 January to 14 February.
China's cut-off from the rest of the world will force the planet to live without this lucrative market. But as it will be the third year of global air travel without Chinese passengersBut companies are getting used to it. Particularly in Europe...