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Slide1: 

Duan Zixin General Manager of Xijiang Airport Group Co. Ltd Sep., 2007 Xinjiang Regional Aviation and Regional Economic Development

Contents:: 

I. Regional economic development of Xinjiang II. Advantages and features of developing regional aviation in Xinjiang III. Current situation of regional aviation development in Xinjiang IV. Key to the development of Xinjiang regional aviation V. Suggestions on development of Xinjiang regional aviation Contents:

Regional Economic Development of Xinjiang: 

Regional Economic Development of Xinjiang Xinjiang lies in interior of Asia, located in the northwest frontier of China, and adjoins with 8 countries. It is the only way for Asia-Europe land bridge, as well as the shortcut of connecting Middle Asia, Western Asia and Europe. It is also the window and frontier of opening up for western China. Xinjiang is the bridgehead and hub for China opening up towards the west I. Position of Xinjiang in the strategic layout of national economic development

Regional Economic Development of Xinjiang: 

Regional Economic Development of Xinjiang (II) Xinjiang is a critical point of economic increase for China in 21st century Petroleum resource accounts for 30% of total national land petroleum resource. Natural gas accounts for 34% of total national land natural gas resource. Their outputs rank at the 2nd and 3rd in China respectively. The developing prospect of minerals is broad due to a large range of mineral types and a great reserve. The reserve of 9 mineral products rank the 1st in China. It is forecasted that the coal quantity accounts for 40% of national reserve.

Regional Economic Development of Xinjiang: 

Regional Economic Development of Xinjiang Tourism resource of Xinjiang ranks the 1st in China. It at least possesses 56 of 68 basic tourism types of China. By the end of 2006, Xinjiang has 7 national 4A-class scenic areas and 62 national 3A-class scenic areas and 33 national industrial and agricultural tourism demonstration sites. (III) Xinjiang is a new choice for China tourism in the 21st century

Regional Economic Development of Xinjiang: 

Regional Economic Development of Xinjiang During the “10th Five-Year Plan”, the investment in social fixed asset increased average 18% annually. During 2003-2006, economic increase ratio reached 10.8%, 11.4%, 10.9% and 11.2% respectively. During 2003-2006, GDP of Xinjiang is 188.635B RMB, 220.909B RMB, 260.419B RMB and 304.526B RMB respectively. (I) Xinjiang’s economy develops at a speed of over- national average level II. Situation and trend of Xinjiang economic development

Regional Economic Development of Xinjiang: 

Regional Economic Development of Xinjiang Nine big tourism areas Six big cities relying on tourism Ten big perfect tourism areas During 2004-2006, tourists from home and abroad to Xinjiang increased by %, % and %. (II) Tourism is becoming the most active backbone industry of Xinjiang national economy

Slide9: 

Pure land in the world with Swiss type scenery —— Mysterious Kanas Lake

Slide10: 

A pond of clear water turns into a holy spring ——“sky mirror,divine pool” Tianchi Lake

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National biggest Islam architecture —— Keshen Etigar Mosque

Lush southern-type fields north of the Great Wall —— Nalaty Prairie: 

Lush southern-type fields north of the Great Wall —— Nalaty Prairie

Slide13: 

Biggest ruins of ancient cities in western China —— Gaochang ancient city in Turpan

Regional Economic Development of Xinjiang: 

Regional Economic Development of Xinjiang Xinjiang is being built into a transit center and logistics channel that the coastal & inland provinces and regions develop market in Middle Asia, Western Asia, Southern Asia, Eastern Europe and Russia. Xinjiang is building an export processing base for economic circle of Middle Asia, Western Asia and Southern Asia, western manufacturing center, as well as the international commercial and trade center of Middle and Western Asia. URC has become one of the key shopping destinations for tourists from Middle- and Western Asian countries. (III) Xinjiang actively develops export-oriented economy by connecting east and west

Regional Economic Development of Xinjiang: 

Regional Economic Development of Xinjiang During the “11th Five-Year Plan”, Xinjiang will accelerate the construction of new-type industrialization. The crux is the shifting strategy of advantageous resource, such as petroleum, natural gas, coal and non-ferrous minerals, etc. Take great effort to develop tourism. Give full play of port advantage to promote the overall development of export-oriented economy in Xinjiang. (IV) Economic development trend of Xinjiang

Regional Economic Development of Xinjiang: 

Regional Economic Development of Xinjiang It is forecasted that the GDP of Xinjiang will be six-fold of 2000’ by the end of 2020. The vigorous development of Xinjiang regional economy provides powerful driving force for Xinjiang regional aviation. (IV) Economic development trend of Xinjiang

Advantages and Features of Developing Regional Aviation in Xinjiang: 

Advantages and Features of Developing Regional Aviation in Xinjiang I. Many mountains and long range —— regional aviation is better than overland transportation. The unique geographic environment establishes the base of development advantage for regional aviation.

Table of range between airports and highway mileage in Xinjiang : 

Table of range between airports and highway mileage in Xinjiang

Diagram for range between airports and highway mileage in Xinjiang : 

Diagram for range between airports and highway mileage in Xinjiang II. Typical oasis economy —— Fit to develop the layout of city pair and hub routes Capital of Xinjiang, cities of each autonomous district, city and county are distributed on the oasis. Beneficial for building the layout of point-to- point city-pair routes, as well as spoke-hub route network centered on URC. Xinjiang has formed the most complete system of regional route support network in China.

Chart of regional airport route in Xinjiang: 

Chart of regional airport route in Xinjiang Chart of regional airport route in Xinjiang Operating airport Storage airport

Advantages and Features of Developing Regional Aviation in Xinjiang: 

Advantages and Features of Developing Regional Aviation in Xinjiang III. The peak season of tourism is obvious ——Require airlines to schedule transport capacity scientifically and reasonably The obvious tourism peak/off season and wave crest of passenger flow require airlines to schedule transport capacity correspondingly. Use small aircraft in off season and regional + trunk aircraft in peak season. Use large aircraft in peak passenger flow and regional aircraft in valley flow period.

Situation of flight taking off / landing times and passenger handling capacity at regional airport in off season during 2004-2006: 

Situation of flight taking off / landing times and passenger handling capacity at regional airport in off season during 2004-2006 Year Month

Situation of flight taking off / landing times and passenger handling capacity at regional airport in off season during 2004-2006: 

Situation of flight taking off / landing times and passenger handling capacity at regional airport in off season during 2004-2006 Month Year

Advantages and Features of Developing Regional Aviation in Xinjiang: 

Advantages and Features of Developing Regional Aviation in Xinjiang IV. 22 million population base——require airlines to select aircraft type and its seats scientifically The local fixed population base is smaller than that of inland provinces. In off season, the floating population reduces and the local people who choose travel by air is small. It is both the demand for satisfying the development of regional aviation and the key for ensuring seat factor and making profit to select aircraft type with suitable seat number.

Statistical table of population of the city in which the airport is located: 

Statistical table of population of the city in which the airport is located

Table of seats comparison of B737 vs. 50-70-seater : 

Table of seats comparison of B737 vs. 50-70-seater

Current Situation of Regional Aviation Development in Xinjiang: 

Current Situation of Regional Aviation Development in Xinjiang During the year 2004-2006, the total volume of the main transport index of every regional airport is on the low side, and develops slowly, only accounting for 20-30% of that of the group. I. General development is slow and unbalanced

Operation status of each airport in Xinjiang during 2004-2006: 

Operation status of each airport in Xinjiang during 2004-2006 Year Airport

Historical operation data of each airport in Xinjiang during 2004-2006: 

Historical operation data of each airport in Xinjiang during 2004-2006

Current Situation of Regional Aviation Development in Xinjiang: 

Current Situation of Regional Aviation Development in Xinjiang Now, there are 12 regional airports in Xinjiang. Now, the base company owns 5 ATR-72s, and the main flights flying from URC to each regional routes are operated by the 5 ATR-72s. (I) Small number of regional aircraft in Xinjiang II. Main reasons of restricting development of regional airport

Diagram of regional airport distribution: 

Diagram of regional airport distribution                   

Current Situation of Regional Aviation Development in Xinjiang: 

Current Situation of Regional Aviation Development in Xinjiang There are 4 regional airports with 3C flying region in Xinjiang: Aksu, Tacheng, Quga and Qiemo airports. They can only take off / land the aircraft with types below ATR-72. (III) High transport cost restricts development of regional aviation tourism The average distance between the main cities and URC within Xinjiang is over 700km. Circuitous route of regional airports haven’t been opened. (II) Some airworthy aircraft are still restricted by infrastructure at partial regional airports

Current Situation of Regional Aviation Development in Xinjiang: 

Current Situation of Regional Aviation Development in Xinjiang By the end of the “11th Five-Year Plan”, the amount of Xinjiang airport will be 17, and the density of operating airport will be 0.1 airport/ten thousand square km. 16 regional airports: Keshen, Yining, Ku’erle, Hotan, Aksu, Altay, Tacheng, Karamay, Kuga, Qiemo, Hami, Kanas, Shihezi, Turpan, Fuyun (non-operating & storage). (I) Layout program of Xinjiang regional airport I. Construction program of Xinjiang regional airport during the “11th Five-Year Plan”

Diagram of Xinjiang regional airport layout:: 

Diagram of Xinjiang regional airport layout:                   

Key to the Development of Xinjiang Regional Aviation: 

Key to the Development of Xinjiang Regional Aviation (II) Construction target of Xinjiang regional airport Construction target: all airports, except individual airport like Qiemo, will be reconstructed into 4C flying region and satisfy the airworthy demand of B737 series. During the “11th Five-Year”, 2.4 billion RMB will be invested into reconstruction or extension for 11 airports.

Layout plan diagram of Xinjiang regional airport construction:: 

Layout plan diagram of Xinjiang regional airport construction:                   

Key to the Development of Xinjiang Regional Aviation: 

Key to the Development of Xinjiang Regional Aviation The rapid development of Xinjiang regional aviation needs the active operation of regional aircraft. Realizing the harmonious development of regional airport, regional aircraft and regional aviation. II. The important way of developing Xinjiang regional aviation is to introduce regional aircraft

Key to the Development of Xinjiang Regional Aviation: 

Key to the Development of Xinjiang Regional Aviation CAAC and the other industrial authorities issued supporting policies for developing regional aviation successively. Nationalization of regional aircraft is being realized step by step. III. It is the best time to introduce regional aircraft and develop regional aviation in Xinjiang at present.

Key to the Development of Xinjiang Regional Aviation: 

Key to the Development of Xinjiang Regional Aviation It is beneficial to introduce airworthy regional aircraft and resolve the contradiction of insufficient regional aircraft. It is beneficial to accelerate the professional development of Xinjiang regional market and solve the problem of lower development of Xinjiang regional market. IV. It is the only way to introduce regional airlines for developing Xinjiang regional aviation

Suggestions on Development of Xinjiang Regional Aviation: 

Suggestions on Development of Xinjiang Regional Aviation (I) Suggesting to introduce 50-70 regional aircraft It could satisfy the demand of passenger source in off season and can meet the requirement in peak season by increasing flight frequency or supplying trunk aircraft. It would change the phenomena of flying regional route by trunk aircraft with high cost, few flights and profitless. It could give full play of the advantage of regional aviation, and increase seat factor. I. Aircraft type and amount

Suggestions on Development of Xinjiang Regional Aviation: 

Suggestions on Development of Xinjiang Regional Aviation (II) Introduce 10-15 regional aircraft By the end of the “11th Five-Year Plan”, the number of regional airport will be increased to 15 and 10-15 regional aircraft will be introduced to meet the requirement of regional market operation.

Suggestions on Development of Xinjiang Regional Aviation: 

Suggestions on Development of Xinjiang Regional Aviation Build spoke route centered on the gateway of URC Timely open seasonal air circuitous route II. Route design

Route chart: 

Route chart Route chart of air circuitous travel from Xinjiang airport URC-Keshen-Kuerle-URC URC-Keshen-Kuqa-Nalaty-URC URC-Yining-Altay-URC URC-Kanas-Nalaty-URC

Suggestions on Development of Xinjiang Regional Aviation: 

Suggestions on Development of Xinjiang Regional Aviation Timely open air express routes with multi-frequency and multi-type tickets Be beneficial for passenger to transfer connection route fast and conveniently Be beneficial to improve seat factor of regional route and earning ratio.

Slide45: 

Thank you!

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