EU Urges China To Liberalize Aviation Sector

"We must seize the opportunity to make rapid progress in all areas, including safety, security, environmental protection and expansion of the number of people who can use aviation services," said Jacques Barrot, EU vice president and commissioner responsible for transport.

Speaking at the EU-China Aviation Summit, the highest-level meeting of this kind ever held, Barrot said the EU was eager to work with China to increase aviation services to meet the booming consumer demand.

"Growth forecasts suggest that EU-China air traffic will increase by around 7 percent per year over the next 15 years," Barrot said.

Demand for air transport is being fueled by a more than 15 percent annual increase in EU-China trade, with the EU being China's main trading partner, and China being the EU's second largest trading partner after the US, Barrot said.

China is attracting not only European industry and commerce, but an increasing number of European tourists. Europe meanwhile is also attracting a growing number of Chinese tourists.

"The world events which China will be hosting in the coming years, such as the summer Olympic Games, here in Beijing in 2008, and the Shanghai World Expo in 2010, will attract an even greater number of European tourists and businesses," Barrot said.

"Faced with these challenges, we must not fail. We need to enhance our aviation relations not only to facilitate the expected growth of passengers and cargo but indeed to promote it."

Currently, only 20 European and Chinese airlines are allowed to fly between Europe and China, offering flights to 10 Chinese cities and 15 European cities.

The total number of flights each week between both sides amount to only 226 passenger flights and 60 cargo flights.

China also caps foreign investment in its aviation sector at less than 50 percent.

EU officials said they hope to eventually reach an agreement with China on full market liberalization, including lifting investment caps and more importantly lifting flight restrictions to ensure the number of flights offered meet the market's demands.

By SpaceDaily