City to Construct Terminal for Low Cost Airlines

City to Construct Terminal for Low Cost AirlinesThe city is planning to start constructing of an airport terminal designed for low cost airlines this year that will cater to the growing number of passengers taking the low cost airlines. According to the second China Low Cost Carrier Summit a forum of the 10th China International Logistics and Transportation Expo, the Low Cost Terminal or (LCCT) will not have VIP lounges, contact boarding gates and high end consumption facilities. The terminal is designed to satisfy the minimum demands of ground service for passengers that will further reduce the expenses of low cost airlines.

The Shenzhen International Airport introduced its first budget airline in 2006, the Singapore based Tiger Airways that operates budget flights from Singapore to Shenzhen. Then in 2007 Air Asia started operations at the Shenzhen International Airport and its international passenger turnover in 2013 is around 41 percent of the total international passengers in the Shenzhen market. Passenger turnover for Spring Airlines that started operations in 2010 has increase to 660,000 passengers in 2013 and the airline recently opened to new routes to Japan. Wang Yi the vice president for Spring Airlines said that the Central Government unveiled policies that encourage development of low cost airlines and by 2030 the market shares of low cost airlines will be at 20 to 30 percent and passenger turnover will increase 12 percent year on year.

In 2014 there are six low cost airlines operating 25 domestic routes from Shenzhen, globally there are 170 low cost airlines carriers or 26 percent of the aviation market. In China alone there are 13 low cost carriers from five countries that operate 23 routes linking China to several cities but the market share is just less than 5 percent. Based on the city’s long term plan for the aviation industry, annual passenger turnover for 2025 will hit 52 million and cargo turnover is at 2.8 million tons. For the first nine months of 2015, cargo turnover reached 740,000 tons showing an increase of 5.3 percent and ranked fourth among Chinese cities and is said to hit an annual turnover of 1 million tons a new record in the aviation industry.

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