China-made airplanes meet Waterloo
(Xinhua)
Updated: 2006-01-17 20:01

An investigation from the China National Civil Aviation Administration (CNCAA) said that most Chinese airlines make no profits in feeder line transport even these airplanes working more than eight hours each day with over 70 percent seats taken.

Experts said China's limited supporting policies on feeder line transport is far to stimulate more demand from the Chinese airlines in expanding feeder liner market.

Statistics show that the share of feeder liners among China's total fleet still less than 10 percent, while the proportion in the United States is 50 percent.

Besides the low profit and shortage of airplanes, other reasons for the low-development of feeder line transport in China was that the cost of operating feeder line transport is much higher than that on trunk lines, said some Chinese airlines.

Currently, many Chinese airports, including Beijing, Shanghai and Kunming, have to limit the entry of feeder liners in case of tense landing areas, which added more pressure on Chinese airlines in developing feeder line transport.

To change the unsatisfactory situation, the CNCAA has just issued guidelines on promoting the development of the feeder line transport in China.

According to the guidelines, airline companies would be given an easier access to feeder line transport. Favorable policies and government subsidies would also be given to transporters on feeder lines and airport operation.

In promoting the aviation development on short-distance flight routes and in lacklustered regions, CNCAA promised to simplify the approval procedure of buying and renting feeder liners, and relax import tax on the feeder liners, engines, and component.

Hu Huaqing, a researcher with the Chinese cavil aviation development institute, suggests that the aviation authorities should allow some airlines to launch more business feeder lines on tourism, point-to-point route. In addition, some new air companies and new airports should be defined wholly to operate feeder line transport.