Chinese Airports Profits Are Soaring

During the 1980’s and early 1990’s China attempted to build many airports, most of which were failures due to poor design and execution. However, that is no longer the case due to the growth of big cities and the resulting cash from the real estate boom. Even the government is lending a hand with oversea fact finding missions, hiring international consultants along with pursuing joint ventures, to improve the profits of the airport. According to Liu Wiujun, the Shanghai Airport Authority’s CTO, part of why Chinese airports are becoming more successful is because of their new building philosophy ““The areas that tend to be profitable we made as large as possible; the areas not so profitable we made as small as possible.” This resulted in smaller roads around the airport and bigger hotels, shops, and cargo centers.

In addition, profits are increased by low building costs; China being well known for aggressive building schedules. This includes 24/7 construction schedules with minimal commute time for workers, because they usually live on site. For comparison, Heathrow Airport Terminal 5 in London took almost six years to build and cost $6.5 billion, while Hongqiao Terminal in Shanghai was built in half that time at a third of the price.

 

Written by Kevin Zhang

Source:

Barboza, David. “Airports in China Hew to an Unswerving Flight Path.” The New York Times. The New York Times, 04 Apr. 2013. Web. 04 Apr. 2013. <http://www.nytimes.com/2013/04/04/business/global/shanghais-new-air-terminal-sets-the-pace-for-speed-and-ambition.html?pagewanted=1&gt;.

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