I' Remarkable Achievements

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• I. Remarkable Achievements
• In the 30 years reform and opening-up, China has
  made remarkable achievements in the total
  turnover of transportation, passenger traffic
  volume and cargo mail. Throughput of the civil
  aviation industry in China have increased to
  36.53 billion tonkms, 186 million persons and
  4.018 million tons respectively in 2007 from 0.3
  billion ton-kms, 2.31 million persons and 64
  thousand tons in 1978, recording an annual
  average growth rate of 17.3, 15.7 and 14.9
  during 1978-2007, respectively (1997 56.30
  million persons, 1.25 million tons)
• The average growth rate of total turnover of
  transportation in the civil aviation industry is
  3.2 times of the world average level
• As of total turnover in transportation of
  scheduled flights, Chinas rank among the
  contracting countries of International Civil
  Aviation Organization (ICAO) has risen to the 2nd
  in 2005 from the 37th in 1978
• By the end of Sep. 2008, CAAC has established
  more than 1,500 scheduled airlines in total, with
  1,245 aircrafts of all models and accumulated
  safety flight time of more than 12 million hours
  (1997 485 aircrafts, 967 scheduled airlines)

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• II. Development in September, 2008
• Total turnover of transportation
• 26.94 billion ton-kms Growth rate
  2.7
• Volume of passenger traffic
• 139.05 million persons Growth rate 1.7
  
• Cargo mail carried
• 2.934 million tons Growth rate
  3.8
• Flight passenger load factor (PLF) in Aug. is
  71.8 on average, i.e. a 9.6 decrease compared
  to the same period last year. The record turned
  75.3 in Sep.
• The figure for domestic flights is 73.0,
  i.e. a 9.5 decrease compared to the same period
  last year
• Overall Load Factor (OLF) in Aug. is 64.2 on
  average, i.e. a 5.5 decrease compared to the
  same period last year. The record turned 67.1 in
  Sept.
• The figure for domestic flights is 66.4, i.e.
  a 8.4 decrease compared to the same period
  last year
• Daily utilization ratio of aircrafts in Aug. is
  8.8 hours, i.e. a decrease of 1.3 hours compared
  to same period last year. The record 8.9 hours in
  Sept.

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• III. Economic Results in the First 9 Months 2008
  
• comparison to the same period last year
• Main business income - RMB 218.29 billion - 11.3
  increase
• Main business cost - RMB 200.13 billion -
  24.1 increase
• Growth rate of cost is 12.8 higher than
  that of main business income.
• Ops, mgmt and finance cost - RMB 20.19 billion -
  9.3 decrease
• It turned out that there is a loss of RMB
  0.81 billion, that is, a loss reduction profit
  increase of RMB -15.81 billion compared to the
  same time last year, in which, profits of
• Airline - RMB -3.63 billion
• Airport - RMB 0.79 billion
• Other SP - RMB 2.03 billion

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• III. Economic Results in the First 9 Months 2008
  
• comparison to the same period last year
• Outline
• Through the entire industry, key turnouts kept
  growing but with a big slowdown
• Three main targets set at the beginning of this
  year have been achieved by 65.9, 67.3 and
  68.4, merely.
• The operation scale in Aug. has retrogressed to
  the status two years ago, approximating to the
  level in Aug., 2006. As for the current fleet
  scale, there are approximately 280 more aircrafts
  in terms of quantity, with both OLF and
  utilization ratio of airplanes seeing a
  significant drop under the influences of
  insufficient market supply and drastic surge in
  prices of coal and fuel, the airline companies
  are suffering big losses, with some companies
  even endangered for its very survival as the
  construction of airport projects was carried out
  in full swing, the profitability of airports
  greatly declined as they were put into operation
  one after another.

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• IV. Existing Major Issues in The Development
• Lack of development coordination
• The developments of civil aviation industry in
  East, Center and West China are unbalanced, and
  the development of regional aviation, air
  freight, international aviation and general
  aviation lags behind.
• Low sustainable development ability
• There exits many problems such as deficiency in
  infrastructure, low management level,
  restrictions in human resources, airspace
  resources aviation fuel resources, etc.
• Remarkable structural problem
• Contradictions exists between tremendous needs
  and insufficient development ability, between
  rapid growth of transport production and
  unstable safety basis, and between liberalization
  of international air transport and weak
  competitiveness.
• Various contradictions in management system and
  operational mechanism
• Further reform and improvement are needed.

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• V. Prospect for Development
• The annual average growth rate during the
  Eleventh Five Year Plan for Chinas Civil
  Aviation Industry is 14
• As of 2010, the passenger volume will be 0.275
  billion people, cargo mail 6.4 million tons and
  the number of airports 190
• As of 2020, the passenger volume will be 0.77
  people, cargo mail 16 million tons and the
  number of airports 244
• In general, the civil aviation industry in
  China is now and will be within quite long period
  undergo a growth stage, especially when the
  current quantity and quality is still
  insufficient to fully meet the needs of
  nationwide reform and opening up as well as
  economic social development.