Statistics published by China Civil Aviation Authority show that by the end of 2011, 130 of 180 airports measured were operating at a loss, or about 72%. The total loss of these airports has been estimated around two billion RMB, or about 16 million RMB per airport on average. So why do these places choose to construct and operate airports that are loosing money? The reason given by the “Civil Airport Management Ordinance” is that airports are considered public good infrastructure projects, so it’s more important that they open more routes and more flight times than turn a profit.
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Keywords: China airports losing money
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Sometimes I'm amazed by the Chinese government. That they put more focus on the public factor than the making a profit. Last summer they subsidized the oil price, which would never occur back home in my country.
Feb 15, 2013 16:33 Report Abuse
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