Chinese Market for Commercial Aviation

1. Chinese Market for Commercial Aviation Neil Dave, Consulting Analyst Aerospace & Defense twelfth December 2012© 2012 Frost & Sullivan. All rights held. This record contains exceptionally secret data and is the sole property ofFrost & Sullivan. No some piece of it might be flowed, cited, duplicated or generally recreated without the composed approbation of Frost & Sullivan.

2. Center Points• Structure of Chinese Commercial Aviation Market• Chinese Commercial Aviation Market Overview• Current Trends and Forecasts of the Market• Major Drivers and Restraints confronted by the Market• Conclusion and Key Takeaways from the Market 2

3. Chinese Commercial Aviation Market – Structure, 2011•The business aeronautics showcase in China comprises of five primary portions: o Airports o Airlines o General Aviation o MRO and o Aerospace Manufacturing•The extent of the flight business in this instructions will cover airplane terminals, aerial transports and general avionics acrossChina (barring Hong Kong, Macau and Taiwan) • Airports: This fundamentally embodies aeronautical and non-aeronautical income. • Airlines: This embodies deals from traveler tickets and load throughput. • General Aviation: Overall, this section involves four primary sub-fragments: Business Jets, Helicopters, Turboprop Aircraft, and Piston Aircraft. Business Aviation Market General Aerospace Airports Airlines MRO Aviation Manufacturing Included Not Included 3

4. Chinese Commercial Aviation Market – Overview• As indicated on the Chart, The business avionics advertise in China is predominantly contributed via Airports, Airlines and General Aviation sections. • The aggregate number of air terminals in China in 2011 was 180. These contained the accompanying: - Tier 1 Airports: 3 noteworthy Hub Airports. - Tier 2 Airports: All air terminals with 5 million travelers and/or above - Tier 3 Airports: All air terminals with under 5 million passengers• There were a sum of 46 carriers in China in 2011. Of these, 10 aerial transports were exclusive, while the other 36 were state claimed. This section was ruled by the primary three state-claimed members, Air China, China Southern, and China Eastern. China's aggregate flight business sector includes of• The general aeronautics fragment involves principally of airplane terminals, aerial shuttles and general flying which business and private planes, cylinder motor air ship, turbo- contribute around 11%, 84% and 5% of aggregate prop air ship and helicopters. incomes individually. 4

5. Chinese Commercial Aviation Market – Overview• according to the figure demonstrated as follows, the aggregate aeronautics business sector is required to achieve incomes of near to $240 billion by 2020 from incomes of US$ 62.15 billion in 2011.• Majority of this development will be driven by the Airports and Airlines sections which are said to experience most advancement amid the decade.• Airlines will contribute a lion's share of business flight market incomes by 2020. Year 5


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