Chinese airport welcomes its opportunity and the challenge in 2008. China will invest 450 billion yuan to build 97 new airports by 2020, a move that will cater to soaring air travel demand and alleviate the strain on existing aviation infrastructure. Meanwhile, CAAC unveiled a plan to reform the charging system for airlines using domestic airports, aiming to coordinate the common interests of airports and airlines which does not involve the adjustment of passenger charges and will not result in rising civil airline ticket prices. What we can say is that the airport reform is more humanization, and really takes into account of the convenience and substantial benefits of the passengers.

In early 2008, CAAC unveils the National Civil Airport Development Plan approved by State Council. According to the plan, the number of airports nationwide will increase to 192 by 2010, and to 244 by 2020. The new airports will be built in five main regions of the country - North, East, South, South West and North West. The plan means that eight of every ten Chinese will live within 100 kilometers of an airport by 2020.

In November, 2008, Chinese government has worked out a plan of expanding domestic demand to promote economic growth. More investment will go to civil airports construction and extension, especially in those western cities like Kunming, Chongqing and Nanning as well as Yunnan province. Chinese government has newly added 30 billion RMB Yuan (about 4.3 billion USD) for those projects.

In 2009, China will launch new projects of airport hubs in Chengdu, Xi'an and Guangzhou as well over 40 regional airports with investment over 200 billion RMB Yuan (about 28.6 billion USD). By 2010, investment for new projects of airport hubs in Pudong Shanghai, Wuhan, Nanjing and over 20 regional airports will add up to 250 billion RMB Yuan (about 35.7 billion USD).

The fuel prices, rising inflationary pressures and global financial volatility were exerting pressure on the aviation industry. The tightening of Mainland visa applications due to the Olympics also contributed to lower passenger and cargo figures.

Beijing Capital International Airport, operator of China's busiest airfield, said first- half profit fell 90 percent on costs from a new terminal and flight cancellations caused by snowstorms in February and an earthquake in May. The combined throughput of passengers and cargo grew by just 1.6 percent in the first 10 months of the year, the lowest since 2000. The airport has lowered its forecast for the year from 60 million passengers to 58 million, however, as the long-term outlook for the Asia-Pacific region is promising, it could still achieve 5 percent growth this year for passenger traffic, and 10 percent is forecast for next year.

As one of the most important construction projects for the Beijing 2008 Olympic Games, BCIA T3 started operation in two stages on 29 February 2008 and 26 March 2008 respectively after four years of construction commencing from 28 March 2004.

Shanghai International Airport, currently operating two airports -- Pudong International Airport and Hongqiao Airport in the big east China city, reported its net profit for the first half fell 39.1 pct from a year earlier, due mainly to increased operating costs despite higher passenger and cargo traffic. It may fall short of its 2008 passenger volume target of 56 million passengers in 2008.

In order to enhance Shanghai's aviation hub status, Shanghai Airport Authority accelerates the expansion of Pudong Airport. Shanghai Pudong International Airport T2 started operation in two stages on 26 March 2008 and 29 April 2008 respectively.

From March 1, 2008, CAAC unveils a plan to reform the charging system for airlines using domestic airports. The new policy also calls for lowering domestic charges at Beijing Capital and Shanghai Pudong along with an increase at a majority of medium and small airports throughout China. The main aim of this reformation is to coordinate the common interests of airports and airlines which does not involve the adjustment of passenger charges and will not result in rising civil airline ticket prices.

Meanwhile, China will invest 450 billion yuan to build 97 new airports by 2020. The plan means that eight of every ten Chinese will live within 100 kilometers of an airport by 2020. The airports gradually establish the downtown terminal buildings to provide much more convenient service to the passenger.