It is predicted that cargo transport volume by air will reach 2.5 million tons this year, a rise of 18 percent year on year, according to China's Industrial Development Report 2004, which was publicized in Beijing on Monday.

The report forecast that China's civil aviation transportation will enter a period of fast growth this year as the General Administration of Civil Aviation of China plans to adopt a series of measures to boost the development of the aviation sector and related industries.

These measures include loosening market accession conditions for cargo transportation airline companies and feeder airways, allowing inflow of private funds into the civil aviation transportation, and reducing and exempting taxes on feeder airways among others.

The report also predicts that fixed asset investment in the aviation sector is expected to reach 15 billion yuan (US$1.81 billion).

China's aviation sector handled 87.59 million passengers and 2.19 million tons of cargo last year, up 1.9 percent and 8.4 percent over 2002 respectively.

| China Travel Update |