AirportBusiness Blogs

… another signal of the opportunity for U.S. companies as they look to the East. Over the holidays it was announced that Mesa Air Group had inked a deal with Shenzhen Airlines Company to create China’s first commuter air carrier. Says The Wall Street Journal, “The venture, provisionally named Beijing Airlines, marks a milestone in the gradual opening of China’s airline business to foreign investors.” 

Airline analyst Mike Boyd likes to say that if you’re not Sino-Centric, you’re not paying attention to the future marketplace. Consultant Michael Hodges of Airport Business Solutions, who has an airport management consulting contract in China, comments that “the biggest weakness of the system over there is air service to smaller communities. Of course, small communities in China have 3 million people.  The real challenge is going to be the economics. The problem is changing the culture of people recognizing the value of time. People travel by train because they can take the train for three times less.”  At the same time, calls to the AIRPORT BUSINESS editorial desk come in frequently from companies looking to invest in the fixed base operation business in India. It would seem that big opportunities await global companies. Watching how the vibrant business aviation sector captures those new markets should be worth watching. Meanwhile, Congress and the U.S. DOT appear not to be convinced. In the past month they have thwarted attempts to allow greater foreign ownership of U.S. carriers, and turned down Richard Branson’s initiative to create a foreign-owned U.S.-based low cost airline. One has to wonder how long it will take for market and government forces to come to a global understanding.  Thanks for reading. jfi