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AEROSPACE
Beijing to build second major airport
by Staff Writers
Beijing (AFP) Jan 12, 2011


China Southern Airlines' net profit soars in 2010
Shanghai (AFP) Jan 12, 2011 - China Southern Airlines, the nation's largest carrier by fleet size, said its net profit soared an estimated 15-fold in 2010 on surging demand for air travel and cargo transport. The carrier, which posted a net profit of 358 million yuan ($54 million) in 2009, did not disclose a specific earnings figure for last year in the preliminary forecast filed with the Shanghai Stock Exchange late Tuesday. "The demand for both passenger and cargo transportation services increased substantially," the airline said, adding that it also expected to benefit from an appreciation in the yuan against the dollar.

Shanghai-listed shares of China Southern closed up 3.1 percent at 9.47 yuan, outperforming the benchmark Shanghai Composite Index, which was up 0.62 percent. The company is due to release its annual report on March 28. China's aviation industry has been boosted by strong economic growth, with the number of passengers expected to reach 300 million this year, up from 267 million last year, state media said Wednesday. The volume of cargo transported this year is estimated to reach 6.2 million tonnes, up from 5.6 million tonnes in 2009.

Beijing plans to build a second major airport in the next five years to keep up with an explosion in air travel in the fast-growing economy, according to a statement received by AFP Wednesday.

State media said the airport was expected to handle 60 million passengers a year, easing pressure on the existing Beijing Capital International Airport -- the world's second busiest hub with 73.9 million passengers last year.

The project has not yet been approved by the central government, the Beijing Municipal Commission of Development and Reform said in the statement.

But Li Jiaxiang, head of the Civil Aviation Administration of China (CAAC), underlined the need to alleviate the pressure on the Chinese capital's existing international hub.

"It is very urgent that we start building the second (major) airport in Beijing now," he was quoted as saying in the China Daily.

"It is now impossible to add even one more flight to the tight daily schedule of the capital airport."

Beijing already has two commercial airports -- the international airport in the northeast and a smaller domestic airfield in the south.

Construction of the new airport is likely to start this year and Li estimated total investment would be at least 100 billion yuan ($15 billion), the report said.

CAAC plans to invest 55 billion yuan building 11 airports around the country this year -- including the one in Beijing -- as well as expanding existing facilities to meet mushrooming demand for air travel, the report said.

The total number of airline passengers in China is expected to jump to 300 million in 2011, up from 267 million last year, it said.

earlier related report
China's first stealth fighter makes maiden flight: reports
Beijing (AFP) Jan 11, 2011 - China's first stealth fighter jet has made its maiden flight, according to photos published by state media on Tuesday, just as US Defense Secretary Robert Gates paid a key visit to Beijing.

The photos, published on the websites of the official Xinhua news agency and Global Times newspaper and said to have been taken by aviation enthusiasts, showed the alleged J-20 fighter flying over the southwestern city of Chengdu.

According to the reports, which cited witnesses, the next-generation war jet -- the existence of which highlights China's military modernisation drive -- made a 15-minute test flight before landing.

But one senior US official traveling with Gates said the Chinese military had carried out the test flight without first informing China's President Hu Jintao and the country's civilian leadership.

"It was clear that none of the civilians in the room had been informed (of the test flight)," said the official, who spoke on condition of anonymity, describing a meeting between Hu and Gates.

When the Pentagon chief asked Hu directly about the test flight during their meeting at the Great Hall of the People, the Chinese president and his aides were clearly caught off-guard, the senior official said.

Hu "said the tests had nothing to do with my visit," and had been previously scheduled, said Gates, who added he accepted the explanation.

Gates is in Beijing on a fence-mending trip one year after China suspended military ties with the United States over Washington's sale of billions of dollars in arms to Taiwan, but the flight threatened to overshadow that effort.

It was revealed only last week that China had completed a prototype of the J-20, which experts say will eventually rival the US Air Force's F-22, the world's only fully operational next-generation stealth fighter jet.

Asked about his view of the People's Liberation Army (PLA) in light of the test flight, Gates said: "I've had concerns about this over time.

"It's one of the reasons why I attach importance to a dialogue" on security issues between both countries, he added.

China's massive annual military spending has aroused concern.

US military officials and strategists see Beijing as a potential threat to Washington's once unrivalled dominance of the Pacific.

But Beijing has repeatedly insisted its military growth does not pose any threat.

"China pursues a defence policy that is defensive in nature and poses no threat to any other nation," foreign ministry spokesman Hong Lei said when asked about the test flight, though he stopped short of confirming it.

"With the development of science and technology and according to the needs of national defence-building, it is natural that countries update their weapons and equipment."

Andrei Chang, the head of the Kanwa Information Centre, which monitors China's military development, said the flight was a "factory test" and not a comprehensive test by the Chinese air force.

"The fighter still needs to undergo more serious tests," Chang told AFP.

More importantly, China's openness on the plane represented a new level of military transparency for the nation which is well-known for maintaining strict secrecy in its political and military affairs, he said.

It is very rare for Chinese media to publicise news on military or other sensitive matters without official blessing.

"There are two reasons they are announcing this -- one is for deterrence and the other is transparency," Chang said.

"They want to show their power to the United States, to tell the American people, especially Gates, 'don't look down on us'."

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