Story ID: JMchinadaxing04132020
China Southern Prepares Move to Daxing International
By: Jennifer Meszaros
Caption: Authorities expect Daxing Airport to host an average of 75 flights per day and an estimated daily volume of 8,000 passengers between April 12 to May 2.
Word Count: 418
State-owned China Southern Airlines has laid plans to move 50 percent of its Beijing flights to the capital’s new mega-hub, Daxing International, as part of a larger industry effort to prepare for the upcoming summer season. According to the Guangzhou-based carrier, plans call for it to transfer half of its flights operating at Beijing International Capital Airport to Daxing by May 2 and increase the proportion of flights from the new airport to 60 percent by March 2021. Once complete, the airline, which employs a dual-hub strategy from Beijing and its base in Guangzhou, expects to control a 43 percent market share at the newly built airport.

The move coincides with China’s plans to accelerate the resumption of flights as it battles to contain the Covid-19 outbreak. According to the Civil Aviation Administration of China (CAAC), Daxing plans for an average of 75 flights per day and an estimated daily volume of approximately 8,000 passengers between April 12 to May 2. The CAAC on Sunday said it had carried out a series of airport drills and inspections in anticipation of the new transfer and is urging all operators “to jointly prepare” for the upcoming summer season to ensure Daxing operates safely and efficiently amid the pandemic.

Last month saw three additional Chinese-based carriers—Xiamen Airlines, Chongqing Airlines, and Donghai Airlines—signal their intent to transfer all services from Beijing Capital to Daxing starting on March 29. State-owned China Eastern Airlines, which on April 8 operated the first domestic flight from Wuhan since the outbreak of the pandemic, said it would relocate some of its flights by April 26. Meanwhile, UAE national carrier Etihad Airways announced in March that it will move to the flights it operates between Abu Dhabi and Beijing Capital and between Beijing and Japan’s Nagoya International to Daxing starting in June 2020. Despite a drastic drop in demand on key routes, Etihad chief commercial officer Robin Kamark said that the airline remains “optimistic” that conditions would improve by summer.

Opened in September 2019, authorities designed Daxing International to accept traffic overflow from Beijing’s existing Capital International Airport. While China's aviation industry is now showing some signs of recovery following the re-introduction of capacity—particularly in the domestic market—Beijing Capital said that it anticipates a further reduction in revenue due to the planned transfer of flights to Daxing.  Nevertheless, Beijing Capital is currently examining further fee reductions for airport tenants in line with the government’s plan to help the industry weather the financial effects of Covid-19.