Industry Analysis & Industry Trends
In the five years through 2013, revenue for the Airport industry in China has been growing at an annualized rate of 10.0%, driven by the rapid development of the Chinese economy. Cultural exchange campaigns between China and other countries also contributed to revenue growth. However, growth is expected to slow be below average in 2013, as the continued mist in large cities like Beijing is severely affecting the operations of airlines nationwide. Competition from high-speed rail is also suppressing demand for airlines, considering its lower price and convenience.
The industry has changed significantly over the past five years.... purchase to read more
Industry Report - Industry Investment Chapter
The industry is capital-intensive, with 1.24 units of labor required for each unit of capital. This means that for every dollar invested in plant and equipment, approximately $1.24 is spent on labor. Major capital requirements for this industry contribute to its relatively high entry barriers.
Capital development projects are one catalyst of economic activity generated by airports, although gaining government approval for new runways and then building them can take a long time. Fixed base assets also have a long lead-time... purchase to read more