Live from BLB Asia Desk: Chinese civilian airport market accessible to private capital.

On last Sunday, Civil Aviation Administration of China issued a new guideline making Chinese civilian airport market now fully accessible to private capital. The measure was set up in order to encourage private capital in all civilian airport projects that are planned in the country's outline for airport development. The guideline points to reduce number of state-owned airports, also encouraging improving service quality and efficiency. According to the guidelines, private investment will no longer need the agency's approval to fund terminals, logistics, ground services and other operations. Private investment (Chinese and foreign) will be admitted to providing intermediary services such as counseling, designing and maintenance to civilian airports. The above mentioned guidelines are important considering that the market of general aviation airport construction has a market value projected to hit 150 billion Yuan (about 22 billion U.S. dollars) by 2020. Furthermore, China will become the world's first aviation market to exceed one trillion U.S. dollars in value in 20 years, according to a forecast by Boeing: opening the door to private capital is therefore also aimed to accelerate the building of civilian airports in order to let the aviation market finally boom, considering the increasing Chinese consumers demand.

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