Further to fly? Proposed rule change would boost Shenzhen’s aviation ambitions
Shenzhen Baoan Airport could add more routes as China’s aviation regulator considers easing requirements for intercontinental flights
Shenzhen is poised to get a big boost to its aviation hub ambitions, as China’s industry regulator considers a relaxation of rules that previously sought to concentrate most of the country’s intercontinental air routes to Shanghai, Beijing and Guangzhou.
The proposed rule change comes as the southern tech hub breaks ground on a massive expansion of its airport, with the prospect of adding more lucrative services to the US and Europe and intensifying competition with Hong Kong.
The change would ease requirements that flights bound for Europe and North America must depart from Shanghai, Beijing or Guangzhou, the “big three” gateway hubs accorded the highest priority in terms of routes, capacity planning and approval.
Shenzhen was seen as the main beneficiary of the change, made after carriers – especially those based outside the three gateway cities – ramped up their calls for an alteration of policy, according to a report from Shanghai-based aviation consultancy and news portal Airwefly.
“Shenzhen was the biggest loser when the CAAC asked airlines last year to funnel passengers heading for the US and Europe through Shanghai, Beijing and Guangzhou,” said Airwefly analyst Jason Zheng. “Now the relaxation will put Shenzhen back onto the map when it comes to how CAAC allocates air traffic rights.”
The right to fly routes to America was heavily regulated by rigid caps on the number of weekly round-trip flights allowed between China and the US, which were highly profitable as demand normally overwhelmed available capacity, Zheng said. Chinese airlines and even city governments would fiercely compete with one another just to be awarded traffic rights, he added.