Two major transportation infrastructure projects which will dramatically increase Yunnan's regional and international importance are both seeking investment, according to Chinese news reports.

Southeast Asian rail network looking for funds
Economic ministers from China and the Association of Southeast Asian Nations (ASEAN) announced at a meeting in Singapore last Friday that they will hold a conference and exhibition to attract investment in a 5,000-kilometer railway network that will link Kunming with Singapore.

According to a joint statement released during the meeting, there are still 550 kilometers of gaps in the network that need to be filled. The remaining work is projected to cost US$2 billion at year 2006 prices.

Once complete, the network will connect Kunming, Dali, Baoshan, Hekou and other cities in Yunnan province with Singapore plus major cities in Vietnam, Laos, Myanmar, Malaysia, Thailand and Cambodia.

Yunnan Airport Group seeks cash for expansion
Yunnan Airport Group Co (YAG) is seeking strategic investors to assist in financing its upcoming expansion in Yunnan province, which includes a new 18.4 billion yuan (US$2.69 billion) airport in Kunming that will be China's fourth-largest in terms of both passenger and cargo traffic.

YAG is looking for cash-only investors to raise its registered capital in exchange for a maximum 40 percent share in the group. In addition to the Kunming airport, other airport projects will be started around Yunnan.

The new Kunming international airport is a key project of China's 11th Five-Year Plan and is positioned to be an international aviation hub with direct flights throughout Asia as well as to Europe, North America and Australia. The airport is expected to begin operations by 2010 and is projected to handle 38 million passengers and 1.3 million tons of cargo in its first year.

Hong Kong Airport Authority, Australia-based Macquarie Group, and the operators of Singapore's Changi Airport and Frankfurt Airport have reportedly expressed interest in investing in YAG.

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Tags: ASEAN, aviation, business, logistics, rail transport, transportation, Yunnan Airport Group

China to tighten security at more than 20 airports

Tuesday, 8th July 2008 ~ Chris ~ Link ~ Comments (0)

Travelers seeking to take advantage of the recent low air ticket prices for many domestic flights in China may want to consider arriving at the airport a little earlier than normal after July 20.

The Civil Aviation Administration of China (CAAC) announced yesterday that beginning July 20, travelers passing through more than 20 mainland airports will be subjected to an additional layer of security checks before boarding their flights.

In addition to security checks before entering airport waiting halls, there will also be new security checkpoints immediately prior to boarding.

Unsurprisingly, the official reasoning behind the tightening of airport security is Olympics-related. According to a China Daily report:

"The special measure is aimed at raising the security level at the airports and preventing anyone from carrying explosives, inflammables or other materials that can be used to disrupt the Beijing Olympic Games, the CAAC said."

"Suspects will have to go through thorough security checks, and people caught carrying such materials will be dealt with strictly in accordance with the law."

Airports which will implement the secondary security checkpoints include Beijing Capital International Airport, Shanghai's Pudong and Hongqiao airports, plus airports in Qingdao, Tianjin, Shenyang, Qinhuangdao, Shijiazhuang, Taiyuan, Jinan, Hangzhou, Nanjing, Hefei, Changchun, Harbin, Dalian and Hohhot.

Furthermore, all civilian airports in the restive regions of Tibet and Xinjiang will also add the new security checks.

Although Kunming Wujiaba International Airport is not on the list, it is quite likely that security will tighten noticeably in the runup to and during the Olympics.

Image: news.anhuinews.com

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Tags: aviation, CAAC, Olympics, security, travel

China's domestic travel slump = cheap summer flights

Tuesday, 1st July 2008 ~ Chris ~ Link ~ Comments (1)

Despite the start of the summer travel season and the Beijing Olympics only 37 days away, domestic travel in China appears to have dropped drastically from the same time last year.

According to the Sydney-based Centre for Asia-Pacific Aviation, air travel in May dropped 3.3 percent - the largest such drop since the SARS epidemic in 2003. One indicator of how big a hit China's travel industry has already taken is the widespread discounting of air tickets, which usually rise in price during the summer travel season.

According to a CCTV.com report:

"There's been a decrease in the number of air travelers. And ticket prices to some of the most popular tourist attractions have been cut dramatically. These tickets used to be hard to get, selling quite well during the same period last year."

The CCTV report quoted travel agent Wang Yili, who suggested that the Beijing Olympics – which many thought would boost tourism in China before, during and after the Olympics – are the reason that people are deciding to skip out on summer travel.

"The current situation is quite different from that of last year. Because of the Olympic Games people prefer staying at home to watch TV to going out to travel."

GoKunming called our travel agent, and prices for flights out of Kunming to other parts of China are much lower than usual for this time of the year.

We enquired about several popular flights and found that there were tickets to Shenzhen on Friday, July 4 available at a 40 percent discount, coming to 940 yuan, tax included – a rather inexpensive price for this time of year.

A one-way ticket to Shanghai this Friday, which last January was nearly the full ticket price of 1,900 yuan, can be found for as little as 870 yuan, tax included. Some tickets for Friday flights to Beijing are as low as 740 yuan and a seat on the short flight to Chengdu is selling as low as 410 yuan.

In related news, Kunming media is reporting that the first chartered flights from Kunming to Taiwan will be departing in the middle of July. The price for a 10-day trip touring around the island will run around 10,000 yuan.

Image: news.jlonline.com

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Tags: aviation, Olympics, travel

Yunnan Airlines to challenge China Eastern for market share

Wednesday, 11th June 2008 ~ Chris ~ Link ~ Comments (0)

The Yunnan provincial government and Grand China Air – which is partially owned by billionaire financier George Soros – have agreed to establish Yunnan Airlines, a joint venture airline that will challenge China Eastern Airlines' dominance of the Yunnan air travel market, according to a Reuters report.

The announcement comes at a time when air travel in Yunnan and elsewhere in southwest China is expected to continue its rapid growth and Kunming is building what will be one of China's largest airports. The news also came shortly after state regulatory body the Civil Aviation Administration of China (CAAC) stripped Shanghai-based China Eastern of several air routes in Yunnan – including flights to Dali and Xishuangbanna – after an apparent mid-air strike by pilots in March of this year.

The company is still awaiting regulatory approval from the central government - which is likely, given that a provincial government will be a stakeholder in the company.

Despite the potential conflict of interest, the Yunnan government released a statement in which it said that in addition to Yunnan Airlines' plans to establish its hub in Kunming it hopes that other airlines including China Eastern's Yunnan subsidiary will further develop their operations in Kunming, according to a Xinhua report.

Xinhua is reporting that Yunnan Airlines will start out with a fleet of at least 30 planes.

Image: Xinhua

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