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Small airports to get govt backing in China

By Xin Dingding (China Daily)
Updated: 2009-04-22 07:47

Small airports are expected to receive government subsidies after being reclassified as public infrastructure under a new regulation.

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The regulation stipulates that governments at all levels must take necessary measures to support airports from July 1.

China had 160 civil airports last year, and plans to have 244 by 2020.

The regulation is expected to benefit small airports because large ones are profitable.

China has 103 small airports - those that serve less than 1 million passengers a year - and it's been estimated that 91 percent are losing money.

Industry sources said the regulation would save these airports, which are State-owned enterprises but are managed as private businesses. They handled just 6.4 percent of total passengers in 2006... 

The full text is available in the April Issue of Logistics China. Please visit publications for more subscription details.