China is the fastest growing aviation market in the world thanksto the expansion of its air freight and air passengerindustries. With air freight growth volumes predicted todrop off this year, how will the country's significance in theaviation market be affected?

The growth of China's air freight industry has led to asurge in the Asian cargo business over the last few years. Thisis reflected in the fact that air freight from Asia to DallasFort Worth airport (which is the leader in Asian cargo in theeastern and southern U.S) increased by 42% in 2004.

However, it is expected that China's air freight volumegrowth will ease off this year. This will happen as themarket returns to a more stable expansion pace after the postSARS (Severe Acute Respiratory Syndrome) rebound in 2004 and 5.

In 2004 and 2005, China's air freight volume increased by 25%and 20% respectively. Passenger traffic also grew at this time;by 33% in 2004 and by 20% in 2005. This was as a result ofpeople taking to the skies following the outbreak of SARS in theregion.

Although the growth rate of China's air freight business isexpected to ease off this year, it will not halt

altogether.According to freight industry experts, air freight cargovolumes are anticipated to rise by 10% in 2006. If it doesso, China's air freight volume will be 3.36 million tons.

Similarly, air passenger numbers are also likely to increase.China's aviation regulator estimates that air passenger numberswill increase by 15%. This will mean that 159 million peoplewill travel by air out of China in 2006.

The continued growth of China's air freight and air passengervolumes is relevant to the country as it is the fastest growingaviation market in the world today. As a result China is animportant battleground between Boeing and Airbus.

Boeing has entered into discussions with China to supply thecountry with 150 jets. Whilst Airbus has signed a deal withChina to supply 150 A320 jets to it. As a result China's role inthe global aviation market is likely to remain very significantdespite a slight slow down in its air freight industry's growthrate.

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