The China Opportunity, Transforming Aviation & Tourism
China, thanks to its vast population, has already reshaped tourism goals of many destination countries, with over 50% year on year increases in some cases. But China will also reshape the way the aviation industry works – for example with multiple interest tourism and travel equity acquisitions, usually linked to China’s expected tourism expansion.
And as China’s airlines proliferate they are opening new gateways. The growth of China’s airlines internationally has been based on mostly outbound traffic flows and has meant sometimes large influxes of new capacity in several markets.
As well as being mostly outbound, traffic is typically low yielding and seasonal, making competition for foreign airlines difficult. Subsidy at national and local level also helps distort the market in the short term. Many foreign carriers are seeking partnerships, even acquiring equity, but the big three, Air China, China Eastern and China Southern, are often ambivalent, able to flex their muscles and exercise choices.
Meanwhile, there is a flourishing body of new entry from low cost airlines, led by the highly successful Spring Airlines.
- Which are the markets Chinese airlines will target for growth?
- Will other airlines/travel groups seek equity purchases globally?
- How important will LCCs – short and long haul – be in China’s tourist expansion?
- What are China’s airline partnerships likely to look like in 2025?
- “One belt one road” connectivity. Aviation could play an enabling role, but how big will the impact be?
- CAPA – Centre for Aviation, Senior Analyst, Will Horton
- ForwardKeys, Chief Marketing Officer, Laurens Van Den Oever
- National University of Singapore, Professor of Aviation Law, Alan Tan
- Spring Airlines, President, Stephen Wang