Airport business has a capital-intensive business infrastructure, and is characterized by economic features such as pre-public products, exterior and regional monopoly. Currently, China¡¯s airports are suffering losses. In 2002, 80 percent of the 143 airports in China suffered losses. Considering the three major indices of airport operation¡ªpassenger throughput, cargo and posts throughput, and number of take offs and landings, domestic airports (single or as a whole) are still far behind well-known international airports.

After transferring the right of airport management from Civil Aviation Administration of China (CAAC) to local governments, Chinese airports will be more definitely positioned. A more professional management, a diversification of airport construction capital and main body of investments will be the development trend of the industry. 

Considering economic prospects and international comparison, China has a huge potential in developing airport business. The airport construction in China is increasing and the aviation industry also has a prosperous future.

2.Profit sources of airport business in China
2.1 Aviation ground service charge
2.2 Revenue of aviation extended business
2.3 Other profit sources
2.4 Major indices of airport operation

3.Reform in airport business in China
3.1 Transfer of the right of airport management from CAAC to local government
3.2 Development trend of Chinese airports after the management right has been transferred.
3.3 Expanding of Chinese airports¡¯ functions
3.4 Future competition pattern of airports

4.Prospects of airport business in China
4.1 Airport construction in China is in the ascendant      
4.2 Civil aviation of China has a great development potential
4.3 Macro-economic control is favorable to the long-term development

5.Hub airports possess long-term competitiveness