New reforms open China civil airports to capital ventures

China is likely to open further its civil airports to foreign, private and social investors who wish to venture into China’s booming air travel industry. With the implementation of the Regulations for Foreign Investment on Civil Aviation, Hangzhou Xiaoshan International Airport becomes the first joint venture airport in China after it entered an agreement with Hong Kong in 2006. CAAC Vice Minister Gao Hongfeng said that other airports such as Nanjing are also in the process of opening with investors. “Civil aviation property rights pluralism and reform on modern enterprise system for civil airports are important,” said Gao, during the ceremony of the second phase construction of Xiaoshan International Airport held in Hangzhou on November 8th. Gao said that China civil airports had opened to foreign, private and social investors, and the Civil Aviation Administration of China is encouraging all forms of joint venture and cooperation. This, he said, “will further encourage civil airports property rights pluralism, promote modern enterprise reform, and ensure development of China’s civil aviation.” Gao further said that China civil aviation is welcoming a period of unprecedented strategic opportunity. The 2008 Olympic Games in Beijing and 2010 World Expo in Shanghai will bring about a huge volume of aviation traffic. China’s rapid economic development will lead to the further increase of tourism and cargo trade. Because of this, the CAAC had put forward new requirements for reform of China’s civil aviation.