By Xin Dingding (China Daily)
Updated: 2008-03-18 13:48

Any other top boss of a domestic cargo carrier might have felt relieved after last year's air cargo volume topped the previous year's, but not Li Jiaxiang.

In his first public appearance, the newly appointed acting director of China's civil aviation administration expressed concerns about domestic cargo airlines' future. The country's cargo airlines are losing market share on international routes, especially in the cargo transport market, he said.

In 2000, domestic carriers had a 44 percent share in the international cargo market but the figure dropped to 18 percent last year.

The percentage of passenger transport on international routes has also declined, from 56 percent in 2000 to 44 percent last year.

"There is a danger that China's cargo airlines are being marginalized in the world air cargo market," he said.

Cao Yunchun, professor with Tianjin-based Civil Aviation University of China, said it is a sign that Chinese carriers' competitive advantage is weakening in the international market.

"More significantly, this signals a big obstacle to China's goal of becoming a strong power in civil aviation," Cao said.

The General Administration of Civil Aviation of China (CAAC) in 2002 set the goal that the country should develop a strong civil aviation industry by 2020. The short-term goal for 2010 is to have 1,550 planes and 190 airports, handling 270 million passengers and 5.7 million tons of cargo.

Last year, the industry transported 185 million passengers and 3.96 million tons of cargo. With everything going according to plan, the industry reaped a profit of 17 billion yuan.

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