Regional air services to take off in next 20 year

A plane of China Southern Airlines takes off at the Wuhan Tianhe International Airport in Wuhan city, central Chinas Hubei province, Oct 10 2014.

Continuous economic growth, urbanization development and the emergence of the middle class are the pillars that will make China one of the fastest-growing markets in the world. Air transport demand will grow 6.8 percent over the next 20 years, according to a report released by Embraer SA, a Brazilian commercial plane manufacturer, Sina Finance reports.

By 2033, 1,020 new 70 to 130-seat aircraft will be delivered. The 70 to 130-seat jet fleet will increase from 90 units in 2013 to 1,020 in 2033. And 2,750 new narrow body aircraft will be delivered, 60 percent to replace old aircraft and 40 percent to sustain growth. Smaller turboprop airplanes will also be introduced to China's aviation market. These airplanes will fly exclusively to short range destinations.

A maturing economy and growing demand for air transport will demand high quality air services. Although China's east coast markets account for 70 percent of passenger movement in the region, their share is becoming smaller according to the CAAC. China's domestic expansion will see more focus on western cities where infrastructure is readily available and economic output is growing.

China's civil aircraft fleet is almost exclusively comprised of narrow-bodies which are not optimal for serving low and mid-density markets. Although the geography is vast and there is a growing need or greater air transport connectivity, the country's regional fleet accounts for only 7 percent of all single-aisle jets in service.

The report indicates that high speed railway networks cover mostly eastern and southern Chinese cities, and regional airliners aim to develop western cities as its primary market. Therefore, a high-speed railway network will have a smaller impact on regional airline operators.

"It is common knowledge that developing regional air transportation services will improve regional connectivity, economic and social development. And regional airliners are an important part of the national civil aviation industry," said Dongyuan Guan, the vice president of greater China region of Embraer SA.

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