Improvement of air passenger transportations between Ukraine and China

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NATIONAL AVIATION UNIVERSITY

Air Transportation Management Department

TERM PAPER

on the academic subject "Air Passenger Transportation"

Theme: "Improvement of air passenger transportations between Ukraine and China"

Done by: student of group 309

Faculty of Management and Logistics

Heraimovych A.A.

Supervisors: Akimova T.A.,

PhD. (Economics), Associate Professor

Kyiv - 2013

Content

Abstract

List of Symbolic Notations

Introduction

Part 1. Investigation of Aviation Market on the Route Kiev-Beijing

1.1 Transportation Systems Analyses: China and Ukraine

1.1.1 China: General Description

1.1.2 Civil Aviation Market Research in China

1.1.3 Air transport in economic of China

1.1.4 Beijing International Airport: General Description

1.1.5 Ukraine: General Description

1.1.6 Air Transport Analyses in Ukraine

1.1.7 Borispol International Airport

1.2 Analyses on the Route Map Kiev-Beijing (KBP-PEK)

Part 2. Legislation Provision of Ukraine-China Civil Aviation Flights

2.1 Freedoms of the Air

2.2 Warsaw System Regulations of Air Transport Market

2.3 Open Sky Agreement (Liberalization Policy)

2.4 Codeshare and Interline Agreements

Part 3. Passenger Traffic and Route Planning Forecasting

3.1 Estimated Passenger Turnover

3.2 Route Planning Forecasting

Part 4. Time Table Design according to the route KBP-PEK

4.1 Timetable Design

4.2 Aircraft choice for route KBP-PEK

Part 5. Calculation of the Cost of the Flight

5.1 Calculation the cost of leasing and credit for the aircraft

5.1.1 Calculation of Leasing Purchase of Aircraft A330-300

5.1.2 Calculation of Credit Purchase of Aircraft A321-100/200

5.2 Calculation of the net cost of flight

5.2.1 Calculation of the Charges on Fuel and Lubricants

5.2.2 Calculation of Charges on Complete Renewal

5.2.3 Calculation of Charges on Technical Service and Repair

5.2.4 Calculation of Social Contribution Deduction

5.2.5 Calculation of Other Flight Charges

5.2.6 Calculation of Airport Charges

5.2.7 Calculation of Collection on Air Navigation

5.2.8 Calculation of Horary Flight Efficiency

5.2.9 Calculation of the Direct Cost of the Flight

5.2.10 Calculation of the Indirect Cost of the Flight

5.2.11 Calculation of the Tone-Kilometers Prime Cost

5.3 Calculation of the tariff of the route KBP-PEK-KBP

Conclusions and Recommendations

References

Abstract

Course Paper "Improvement of Air Passenger Transportations between Ukraine and China" contains 77 pages with 19 figures and 12 tables. The aim of the work is:

· to make a civil aviation market research according to the given route;

· to know main legislative documents and requirements for flight provision on the given route;

· to make a forecasting and estimation of possible passenger turnover on the given route with the help on Excel Database;

· to know how construct the most suitable timetable according to the given route;

· to find the necessary aircraft according to the estimated passenger turnover, flight distance and given route;

· to make a conclusion according to necessity to purchase aircraft in lease or in credit;

· to calculate the basic fare on the given route;

· to calculate the net cost of the flight according to the route;

· to compare the new flight with competitive ones.

Thus, in this work we represent all these data according to the construction the n route Kiev-China.

List of Symbolic Notations

Airline - is a company that provides air transport services for traveling passengers and freight. Airlines lease or own their aircraft with which to supply these services and may form partnerships or alliances with other airlines for mutual benefit. Generally, airline companies are recognized with an air operating certificate or license issued by a governmental aviation body.

Airport - is a location where aircraft such as fixed-wing aircraft, helicopters, and blimps take off and land. Aircraft may be stored or maintained at an airport. An airport consists of at least one surface such as a runway for a plane to take off and land, a helipad, or water for takeoffs and landings, and often includes buildings such as control towers, hangars and terminal buildings.

Destination airport - the airport, which according to the contract of carriage shall be completed carriage of passengers, baggage, cargo or mail.

Airport transfer - an intermediate airport specified in the transport documents, which according to the contract of carriage of passengers or commits transplant performed baggage (cargo) from one flight to another.

Interline Agreement- an agreement on mutual recognition of transportation documentation and appropriate settlement.

Code-sharing agreement - an agreement on the general use of air carrier flight and its codes.

Stop on the route ("Stopover") - previously agreed between the carrier and the passenger of a temporary stop in the carriage at any point, except for the points of departure and destination.

The passenger - a physical person who is transported by an aircraft with the consent of the carrier under the contract of carriage, except members of the crew and other professionals on board an aircraft, the aircraft operator employees, authorized representative of the national regulatory authority and the persons accompanying the goods.

Regular flight - flight, during which all the seats for the carriage of passengers, baggage, cargo and mail are available for the general use of paid and the carriage is performed between the same points according to the published schedule or within the prescribed period of time, or at a rate that suggests of regularity and no commercial utilization.

Introduction

Flight planning is the process of producing a flight plan to describe a proposed aircraft flight. It involves two safety-critical aspects: fuel calculation, to ensure that the aircraft can safely reach the destination, and compliance with air traffic control requirements, to minimize the risk of mid-air collision. In addition, flight planners normally wish to minimize flight cost by appropriate choice of route, height, and speed, and by loading the minimum necessary fuel on board.

Flight planning requires accurate weather forecasts so that fuel consumption calculations can account for the fuel consumption effects of head or tail winds and air temperature. Safety regulations require aircraft to carry fuel beyond the minimum needed to fly from origin to destination, allowing for unforeseen circumstances or for diversion to another airport if the planned destination becomes unavailable. A route is a description of the path followed by an aircraft when flying between airports. Most commercial flights will travel from one airport to another, but private aircraft, commercial sightseeing tours, and military aircraft may often do a circular or out-and-back trip and land at the same airport from which they took off. Identifying new markets that will generate incremental profitability can be a challenge. Profit Manager helps airlines identify the strengths or weaknesses within their schedule as well as quantify the impact of a proposed schedule. You can improve profitability by better understanding your customers' flight preferences to identify new schedule opportunities, and make quicker responses to competitive changes. Route forecasting is a critical part of good network planning. It, too, can impact your brand, profitability and operational success. Once you select our product, we engage with you immediately and continue to work with you through implementation and product adoption. This enables you to more quickly derive an optimal return on investment and train your staff to realize the fullest benefits from our solution.

Additional consulting offerings that further enable you to maximize the solution's value include: aviation transport market calculation

ь Long-Term Network Planning Consulting.

ь Integrated Scenario Based Product Training Consulting.

ь Season Planning Consulting.

ь Alliance And Codeshare Consulting.

Thus, our work is devoted to the opening of a new route KBP-PEK.

Part 1. Investigation of Aviation Market on the Route Kiev-Beijing

1.1 Transportation Systems Analyses: China and Ukraine

1.1.1 China: General Description

The striking geographic diversity of China includes just about every topographical feature imaginable, including mountains, plateaus, broad plains, grasslands, basins, gentle hills, islands, tidal flatlands, desert, glaciers, and frozen tundra. China is a country with over 1,500 large rivers and 370 large lakes and the Tibetan Plateau is the source for some of the world's mightiest river drainage systems, including the Yangtze River, the Yellow River and the Mekong River. In addition, over 5,000 islands are scattered throughout China's vast territorial waters from the Gulf of Bo Hai in the north to the extreme southern extent of the South China Sea. China is primarily a mountainous nation with a landscape that descends from west to east across three distinct tiers. The highest tier is the Tibetan Plateau, a rugged land situated in southwest China that averages over 4,000 meters (13,100 ft) above sea level. North and east of this plateau, the land suddenly drops to an average elevation between 1,000 and 2,000 meters (3,280 to 6,560 feet) above sea level. The final tier is the vast expanse of land characterized by low hills averaging 500 m in elevation and broad coastal plains; the Manchurian Plain in northeast China, the densely populated North China Plain that spreads south along the Gulf of Bo Hai and the Yellow Sea to the great Yangtze River basin, and, further south, the dramatic topography of the southern coastal lowlands, a blend of unusually shaped cliffs, gorges, and waterfalls.

Economy of China: China's economy is huge and expanding rapidly. In the last 30 years, the rate of Chinese economic growth has been almost miraculous, averaging 8 percent growth in Gross Domestic Product (GDP) per annum. The economy has grown more than 10 times during that period, with Chinese GDP reaching 3.42 trillion US dollars in 2007. China already has the biggest economy after the United States and most analysts predict China will become the largest economy in the world this century.

China's population in 2010 was 1.341 billion, and its expected to grow to 1.375 billion in 2015. In 2010, China's unemployment rate stood at only 4.1 percent, decreasing 4.65 percent from the previous year and expected to decrease further to 4 percent in 2011. Forecasts for 2015 predict China's unemployment rate to remain at 4 percent between 2011 to 2015.However, there are still inequalities in the income of the Chinese people. The per capita income of China is only about 2,000 US dollars, which is fairly poor against global standards. Economic reforms started in China in the 70s and 80s with the initial focus on collectivizing agricultural activities in the country. The leaders of the Chinese economy, at that point in time, were trying to change the center of agriculture from farming to household activities. The reforms also extended to the liberalization of prices, in a gradual manner. The process of fiscal decentralization soon followed. As part of the reforms, more independence was granted to business enterprises that were owned by the state government. This meant government officials at local levels and managers of various plants had more authority than before. This led to the creation of a number of various types of privately held enterprises within the services sector, as well as the light manufacturing sectors. The banking system was also diversified, and Chinese stock markets started to develop and grow as economic reforms in China took hold. China grew at a rapid pace as a result of these reforms and opened its economy to the world for trade and direct foreign investment. China has adopted a slow but steady method in implementing economic reforms. It has also sold the equity of some of its major Chinese state banks to overseas companies and bond markets. In recent years, China's role in international trade has also increased.

1.1.2 Civil Aviation Market Research in China

Since reform and opening up, China's civil aviation industry has developed rapidly and become one of the most important civil aviation markets growing the fastest in the world.

In 2010, China's civil aviation industry completed the total transport turnover of 53.85 billion ton-kilometers, increasing by 11.14 billion ton-kilometers by 26.10 % over 2009, among which the passenger turnover was 35.96 billion ton-kilometers, increasing by 5.87 billion ton-kilometers by 19.50 % over 2009; the cargo and mail turnover was 17.89 billion ton-kilometers, rising by 5.27 billion ton-kilometers by 41.70 % over 2009.

By the end of 2010, there had been 43 transport airline companies, which were divided into 35 state-owned holding companies, 8 non-state owned holding enterprises, 11 professional freight airline companies, 16 Sino-foreign airline joint ventures and 5 listed companies according to different categories.

By the end of 2010, there had been 1,597 final-term registered transport aircrafts in China's civil aviation industry, increasing by 180 over 2009; there had been a total of 175 civil transport airports, rising by 9 over 2009, which all launched scheduled flights.

By the end of 2010, there had been a total of 1,880 airlines of scheduled flights in China. The airline length calculated by repeat distance was 3.98 million kilometers and that calculated by non-repeat distance was 2.77 million kilometers.

By the end of 2010, there had been 111 general airline companies with the general airline company business certificate. In 2010, the flight time of the general aviation industry was 139,800 hours, ascending by 12.90 % over 2009.

In 2010, the cumulative operating revenue of China's civil aviation industry was CNY 411.50 billion, rising by 37 % over 2009, among which the operating revenue of airline companies was CNY 299.90 billion, increasing by 40 % over 2009 and that of airports was CNY 41.70 billion, increasing by 22 % over 2009.

China's civil aviation industry developed at a high speed, but there are still defects in the development. One of the major conflicts lies in liberalization of international air transport and weakness of overall international capability of China's civil aviation industry. Statistics show that in China's aviation passenger transport market, the market share of China's domestic airline companies reduced from 45.30 % in 2005 to 44 % in 2010; in China's aviation freight market, although the market share of China's domestic aviation companies increased from 23.90 % in 2005 to 32 %, it was still less than 1/3 of international aviation fright market.It is predicted that in the next few years, with China's economic growth, China's civil aviation industry will maintain rapid development and general aviation will see favorable market prospects. The market competition of China's civil aviation industry will become more intense and China's domestic civil aviation enterprises will face the competition from international airline companies, high-speed railways and other modes of transport.

The Main Airports of China

№	Name of airport	IATA code	Annual passenger traffic, mln.	Airport passenger capacity, mln.
			2008	2009	2010	2011
1	Beijing Capital International Airport	PEK	55.93	65,4	73,9	78,67
2	Guangzhou Baiyun International Airport	CAN	33,5	37,04	40,9	45,04
3	Shanghai Pudong International Airport	PVG	28.34	31,9	40,6	41,4
4	Shanghai Hongqiao International Airport	SHA	22.84	25,07	31,3	33,1
5	Shenzhen Baoan International Airport	SZX	21.4	24,48	26,7	28,2
6	Chengdu Shuangliu International Airport	CTU	17.24	22,6	25,8	29,07
7	Kunming Wujiaba International Airport	KMG	15.8	18,9	20,2	22,27
8	Hangzhou Xiaoshan International Airport	HGH	12.67	14,9	17,06	17,5
9	Xian Xianyang International Airport	XIY	11.85	15,29	18,01	21,16
10	Chongqing Jiangbei International Airport	CKG	11,1	14,03	15,8	19,05

The Main Airlines of China

AIRLINE	IATA	ICAO	BASE
Air China	CA	CCA	Beijing Capital International Airport Chengdu Shuangliu International Airport Shanghai Pudong International Airport
Air China Cargo	CA	CAO	Beijing Capital International Airport
Chang'an Airlines	2Z	CGN	Xi'an Xianyang International Airport	Merged with Hainan Airlines in 2000
China Cargo Airlines	CK	CKK	Shanghai Hongqiao International Airport Shanghai Pudong International Airport
China Eastern Airlines	MU	CES	Shanghai Hongqiao International Airport Shanghai Pudong International Airport
China Southern Airlines	CZ	CSN	Guangzhou Baiyun International Airport Beijing Capital International Airport
China Express Airlines	G5	HXA	Chongqing Jiangbei International Airport
China Postal Airlines	8Y	CYZ	Shanghai Hongqiao International Airport
China United Airlines	KN	CUA	Beijing Nanyuan Airport
Hainan Airlines	HU	CHH	Haikou Meilan International Airport
Hebei Airlines	NS	HBH	Shijiazhuang Zhengding International Airport
Jade Cargo International	JI	JAE	Shenzhen Bao'an International Airport
Juneyao Airlines	HO	DKH	Shanghai Hongqiao International Airport Shanghai Pudong International Airport
Lucky Air	8L	LKE	Kunming Wujiaba International Airport
Okay Airways	BK	OKA	Tianjin Binhai International Airport
Shandong Airlines	SC	CDG	Jinan Yaoqiang Airport
Shanghai Airlines	FM	CSH	Shanghai Hongqiao International Airport Shanghai Pudong International Airport
Shanghai Airlines Cargo	F4	SHQ	Shanghai Hongqiao International Airport Shanghai Pudong International Airport
West Air (China)	PN	CHB	Chongqing Jiangbei International Airport
Xiamen Airlines	MF	CXA	Xiamen Gaoqi International Airport Fuzhou Changle International Airport
Yangtze River Express	Y8	YZR	Shanghai Hongqiao International Airport

1.1.3 Air transport in economic of China

Air transport to, from and within China creates three distinct types of economic benefit. Typically, studies such as this focus on the "economic footprint? of the industry, measured by its contribution to GDP, jobs and tax revenues generated by the sector and its supply chain. But the economic value created by the industry is more than that. The principal benefits are created for the customer, the passenger or shipper, using the air transport service. In addition, the connections created between cities and markets represent an important infrastructure asset that generates benefits through enabling foreign direct investment, business clusters, specialization and other spill-over impacts on an economy's productive capacity.

Major employer:

ь The aviation sector supports 4.8 million jobs in China. This total comprises:

ь 0.8 million jobs directly supported by the aviation sector;

ь 2.7 million jobs indirectly supported through the aviation sector's supply chain;

ь 1.4 million jobs supported through the spending by the employees of the aviation sector and its supply chain.

ь In addition there are a further 1.2 million people employed through the catalytic (tourism) effects of aviation.

Consumer benefits for passengers and shippers: From visiting family and friends to shipping high value products, 313 million passengers and 11 million tones of freight travelled to, from and within China. More than 208,282 scheduled international flights depart China annually, destined for 173 airports in 68 countries. Domestically, more than 2.2 million flights make over 323 million seats available to passengers, destined to 175 airports. Air passengers resident in China comprise approximately 275 million of the passenger total. For the 313 million passenger flights in total, passengers pay ?1,800 billion (inclusive of tax), with Chinese residents paying around ?1,582 billion. This expenditure is likely to significantly understate the value passengers actually attach to the flights they use (see Section 1). Calculations by Oxford Economics suggest the value of the benefit to travelers from flying, in excess of their expenditure, is worth ?1,240 billion a year (?1,089 billion for Chinese residents). Air transport is crucial for the distribution of high value to weight products. Air freight may only account for 0.5 % of the tonnage of global trade with the rest of the world, but in value terms it makes up around 34.6 % of the total. Shippers pay airlines ?210 billion annually to carry 11 million tones of freight to, from and within China. The benefit to shippers, in excess of this expenditure, is estimated as ?88 billion. Based on the share of exports in total merchandise trade, Chinese shippers receive over half of this benefit (?46 billion).

The aviation sector - comprising the airlines together with the airports, air navigation and other essential grounds services that make up the air transport infrastructure - carries over 313 million passengers1 and 11 million tones of air freight to, from and within China. More than 208,282 scheduled international flights depart China annually, destined for 173 airports in 68 countries. Domestically, more than 2.2 million flights make over 323 million seats available to passengers, destined to 175 airports.

Among the many reasons that people and businesses use air transport, people rely on it for holidays and visiting friends and family; while businesses use air transport for meeting clients and for the speedy and reliable delivery of mail and goods often over great distances. For this reason, the air transport network has been called the Real World Wide Web3. The most important economic benefit generated by air transport is the value generated for its consumers, passengers and shippers. Passengers spent ?1,800 billion (inclusive of tax) on air travel in 2010 and shippers spent ?210 billion on the transportation of air cargo4. With its speed, reliability and reach there is no close alternative to air transport for many of its customers. This means that many are likely to value air services higher than what might be suggested by their expenditure on these services. But this economic value will vary from flight to flight, and from consumer to consumer, making it difficult to measure.

Improvements in connectivity contribute to the economic performance of the wider economy through enhancing its overall level of productivity. This improvement in productivity in firms outside the aviation sector comes through two main channels: through the effects on domestic firms of increased access to foreign markets, and increased foreign competition in the home market, and through the freer movement of investment capital and workers between countries. Improved connectivity gives Chinese-based businesses greater access to foreign markets, encouraging exports, and at the same time increases competition and choice in the home market from foreign-based producers. In this way, improved connectivity encourages firms to specialize in areas where they possess a comparative advantage. Where firms enjoy a comparative advantage, international trade provides the opportunity to better exploit economies of scale, driving down their costs and prices and thereby benefiting domestic consumers in the process. Opening domestic markets to foreign competitors can also be an important driver behind reducing unit production costs, either by forcing domestic firms to adopt best international practices in production and management methods or by encouraging innovation. Competition can also benefit domestic customers by reducing the mark-up over cost that firms charge their customers, especially where domestic firms have hitherto enjoyed some shelter from competition. Improved connectivity can also enhance an economy's performance by making it easier for firms to invest outside their home country, which is known as foreign direct investment (FDI). Most obviously, the link between connectivity and FDI may come about because foreign investment necessarily entails some movement of staff: whether to transfer technical know-how or management oversight. But increased connectivity also allows firms to exploit the speed and reliability of air transport to ship components between plants in distant locations, without the need to hold expensive stocks of inventory as a buffer. Less tangibly, but possibly just as important, improved connectivity may favor inward investment as increased passenger traffic and trade that accompanies improved connectivity can lead to a more favorable environment for foreign firms to operate in. Chart 2.2 plots the total value of FDI built up in individual countries in relation to their GDP against an index of connectivity (produced by IATA), that measures the availability of flights, weighted by the importance of each of the destinations served. The chart shows that countries with higher connectivity (measured relative to their GDP), are in general more successful at attracting foreign direct investment. This is emphasized by the upward sloping line that confirms the statistical relationship between greater connectivity and greater FDI.

1.1.4 Beijing International Airport: General Description

Beijing Capital International Airport (IATA: PEK, ICAO: ZBAA) is the main international airport serving Beijing. It is located 32km northeast of Beijing's city center, in an enclave of Chaoyang District and the surroundings of that enclave in suburban Shunyi District. The airport is owned and operated by the Beijing Capital International Airport Company Limited, a state-controlled company. The airport's IATA Airport Code, PEK, is based on the city's former Romanized name, Peking.

Beijing Capital has rapidly ascended in rankings of the world's busiest airports in the past decade. It had become the busiest airport in Asia in terms of passenger traffic and total traffic movements by 2009. As of 2012, Beijing Capital International Airport is the second busiest airport in the world in terms of passenger throughput behind Hartsfield-Jackson Atlanta International Airport. The airport registered 557,167 aircraft movements (take-offs and landings), which ranked 6th in the world in 2012. In terms of cargo traffic, Beijing airport has also witnessed rapid growth. By 2012, the airport had become the 13th busiest airport in the world by cargo traffic, registering 1,787,027 tones.

Beijing Capital International Airport is the main hub for Air China, the flag carrier of the People's Republic of China, which flies to around 120 destinations (excluding cargo) from Beijing. Hainan and China Southern Airlines also use the airport as their hub.

To accommodate the growing traffic volume, Beijing Capital added the enormous Terminal 3 in 2008 in time for the Olympic Games, the second largest airport terminal in the world after Dubai International Airport's Terminal 3, and the fifth largest building in the world by area.

Beijing Airport was opened on March 2, 1958. The airport then consisted of one small terminal building, which still stands to this day, apparently for the use of VIPs and charter flights. On January 1, 1980, a newer, larger building - green in color - opened, with docks for 10 to 12 aircraft. The terminal was larger than the one in the 1950s, but by the mid-1990s, it was too small. The terminal was then closed for renovation after the opening of Terminal 2.

Another expansion, Terminal 3 (T3) was completed in February 2008, in time for the Beijing Olympics. This colossal expansion includes a third runway and another terminal for Beijing airport, and a rail link to the city-center. At its opening, It was the largest man made structure in the world in terms of area covered, and a major landmark in Beijing representing the growing and developing Chinese city. The expansion was largely funded by a 30 billion yen loan from Japan and 500-million-euro (USD 625 million) loan from the European Investment Bank (EIB). The loan is the largest ever granted by the EIB in Asia; the agreement was signed during the eighth China-EU Summit held in September 2005

Fresh from hosting the 2008 Olympic Games and completion of its new terminal building, Beijing Capital has overtaken Tokyo Haneda to be the busiest airport in Asia based on scheduled seat capacity.

Due to limited capacity at Beijing Capital International Airport, a new airport in Daxing is being planned. The project was given final approval on January 13, 2013. Construction is expected to begin in 2014 and be completed in 2018. The airport will have six runways for civil use and one for military use.It is not yet clear how flights will be divided between the two airports but one plan is that all airlines of the SkyTeam airline alliance is to move to the new airport.

Terminal 1, with 60,000 m2 (650,000 sq. ft.) of space, opened on January 1, 1980, and replaced the smaller existing terminal which was in operation since 1958.Terminal 1 was closed for renovation from 1999 to September 20, 2004, during which all airlines operated from Terminal 2. Featuring 16 gates, it was the operational base for China Southern Airlines' domestic routes and a few other airlines such as Xiamen Airlines and Chongqing Airlines, and was originally planned to handle domestic traffic, excluding those to Hong Kong and Macau.

With the opening of Terminal 3, the terminal was closed for light refurbishment, and its airlines were moved to Terminal 2 on May 20, 2008.Terminal 1 reopened for a second time on June 27, 2008, and became the operational base for all domestic flights operated by the HNA Group, including those of Hainan Airlines, Grand China Air, Deer Air and Tianjin Airlines, while the international flights and the ones between Hong Kong, Macau, Taiwan and Beijing of the HNA Group remaining in Terminal 2.

Terminal 2 opened on November 1, 1999, with a floor area of 396,000 m² (4,260,000 sq. ft.). This terminal was used to replace Terminal 1 while the latter was undergoing renovation, cramping all airlines into this terminal despite it being far bigger than Terminal 1 and it can handle twenty aircraft at docks connecting directly to the terminal building. Prior to the opening of Terminal 3, all international flights (and the majority of the domestic flights) operated from this terminal. This terminal now houses China Southern Airlines, China Eastern Airlines, Skyteam, Air Koryo, and other domestic and international flights after Air China, Shanghai Airlines, Star Alliance members, Oneworld members moved operations to the new Terminal 3. A gate capable of handling the A380 (gate 21) was also built at the terminal.

Construction of Terminal 3 started on March 28, 2004, and the terminal opened in two stages. Trial operations commenced on February 29, 2008, when seven airlines, including British Airways, El Al Israel Airlines, Qantas, Qatar Airways, Shandong Airlines and Sichuan Airlines moved into the terminal. Twenty other airlines followed when the terminal became fully operational on March 26, 2008.Currently, it mainly houses Air China, Star Alliance, and other domestic and international flights. Star Alliance members LOT Polish Airlines, Scandinavian Airlines System, Lufthansa, Austrian Airlines, United, Turkish Airlines (with Star Alliance livery), Thai Airways International, Singapore Airlines, and Air China use Terminal 3-E as part of the Move Under One Roof program to co-locate alliance members.

Terminal 3 was designed by a consortium of NACO (Netherlands Airport Consultants B.V), UK Architect Foster and Partners and ARUP. Lighting was designed by UK lighting architects Speirs and Major Associates. The budget of the expansion is US$3.5 billion. Far grander in size and scale than the preexisting terminals, Terminal 3 was the largest airport terminal-building complex in the world to be built in a single phase with 986,000 m² (10,610,000 concourses (Terminal 3D and Terminal 3E) and five floors above ground and two underground, with the letters "A and B" omitted to avoid confusions with the existing Terminals 1 and 2. Terminal 3C is dedicated for domestic flights, Terminal 3E for international flights, and Terminal 3D, called the "Olympics Hall", was used for charter flights during the Beijing Olympics, and will be used by international flights in the future.

Terminal 3 of the BCIA is currently the second largest airport passenger terminal building of the world. Its title as the worlds largest was surrendered on October 14, 2008 to Dubai International Airport's Terminal 3 which has 1,980,000 m² (21,300,000 sq. ft.) of floor space.

Beijing Capital International Airport is the busiest airport in Asia, and the second-busiest airport in the world. It is a hub for three airlines: Air China, China Southern Airlines, and Hainan Airlines. Nearly 80 airlines altogether fly out of Beijing Capital International Airline. The airport houses three separate terminals, Terminal 1, Terminal 2, and Terminal 3.

Terminal 1 is reserved for domestic flights of Hainan Airlines and its subsidiaries, Deer Air, Grand China Air, and Tianjin Airlines. The airlines flying out of Terminal 1 fly to more than fifty cities throughout China.

Terminal 2 is home to China Southern Airlines, China Eastern Airlines, Skyteam, and Air Koryo. Skyteam is the second-largest of the three airline alliances, and the only alliance to fly out of Terminal 2. The other two alliances share Terminal 3. China Eastern and China Southern are both members, as are Air France, Delta Airlines, and Aeroflot. Hainan Airlines' international flights, and those of its subsidiaries, also depart from Terminal 2. Flights to such destinations as Russia, Malaysia, Algeria, Paris, Italy, and the Philippines are serviced by these airlines.

Terminal 3 houses the majority of the airlines, which fly out of the Beijing Capital International Airport. Oneworld and Star Alliance members all use Terminal 3. The Oneworld airline alliance includes American Airlines, British Airways, and Iberia, among others. Star Alliance members include Air China, Lufthansa, Singapore Airlines, and Thai Airways International, among others. The Oneworld alliance members are all housed in Terminal 3-E, one of the satellite concourses located in Terminal 3. However, Air China's flights are divided between Terminals 3-C and 3-E; the airline's domestic flights depart from 3-C, the main passenger terminal, and its international flights depart from 3-E. The international flights of all the airlines housed in Terminal 3 depart from 3-E; while domestic flights depart from 3-C. All passengers must check in at Terminal 3-C, regardless of whether their flight is international or domestic.

Airlines	Destinations	Terminal/ Concourse
Aeroflot	Moscow-Sheremetyevo	2
Aeroflot operated by Vladivostok Air	Khabarovsk, Vladivostok	2
Aigle Azur	Paris-Orly (begins 30 June 2013) [citation needed]	TBA
AirAsia X	Kuala Lumpur	2
Air Algerie	Algiers	2
Air Astana	Almaty, Astana	2
Air Canada	Toronto-Pearson, Vancouver	3E
Air China	Baotou, Bayannur, Beihai, Changchun, Changsha, Changzhou, Chaoyang, Chengdu, Chifeng, Chongqing, Dalian, Dandong, Daqing, Datong, Dazhou, Fuyang, Fuzhou, Ganzhou, Guangyuan, Guangzhou, Guilin, Guiyang, Haikou, Hailar, Hangzhou, Harbin, Hefei, Hohhot, Hotan, Huangshan, Jiamusi, Jieyang, Jingdezhen, Jinggangshan, Kashgar, Kunming, Lanzhou, Lhasa, Lianyungang, Lijiang, Liuzhou, Mianyang, Nanchang, Nanjing, Nanning, Nantong, Ningbo, Ordos, Qingdao, Qiqihar, Sanya, Shanghai-Hongqiao, Shanghai-Pudong, Shenyang, Shenzhen, Taiyuan, Taizhou, Tongliao, Ulanhot, Urumqi, Weihai, Wenzhou, Wuhan, Wuxi, Xiamen, Xi'an, Xiangyang, Xilinhot, Xining, Xuzhou, Yancheng,	3C,3D
Air China	Athens, Bangkok-Suvarnabhumi, Busan, Chita, Daegu, Delhi, Dubai, Dusseldorf, Frankfurt, Fukuoka, Geneva, Hiroshima, Ho Chi Minh City, Hong Kong, Houston-IntercontinentalJakarta-Soekarno-Hatta, London-Gatwick, London-Heathrow, Los Angeles, Madrid, Manila, Melbourne, Milan-Malpensa, Moscow-Sheremetyevo, Munich, Naha Nagoya-Centrair, New York-JFK, Osaka-Kansai, Paris-Charles de Gaulle, Phuket, Pyongyang, Rome-Fiumicino, San Francisco	3E
Air China operated by Dalian Airlines	Dalian	3C
Air France	Paris-Charles de Gaulle	2
Air Koryo	Pyongyang	2
Air Macau	Macau	3E
Air Mauritius	Mauritius (begins 8 July 2013) [16]	TBA
All Nippon Airways	Tokyo-Haneda, Tokyo-Narita	3E
All Nippon Airways operated by Air Nippon	Osaka-Kansai	3E
American Airlines	Chicago-O'Hare	3E
Asiana Airlines	Busan, Cheongju, Muan, Seoul-Gimpo, Seoul-Incheon	3E
Austrian Airlines	Vienna	3E
Beijing Capital Airlines	Arxan, Baotou, Erenhot, Hailar, Hohhot, Jixi, Lijiang, Ordos	1
British Airways	London-Heathrow	3E
Cathay Pacific	Hong Kong	3E
Cebu Pacific	Manila	2
China Airlines	Kaohsiung, Taipei-Taoyuan	3E
China Eastern Airlines	Changchun, Dali, Dalian, Dunhuang, Enshi, Hailar, Hangzhou, Harbin, Hefei, Huai'an, Huangshan, Jiayuguan, Jining, Kunming, Lanzhou, Lianyungang, Lijiang, Linyi, Luoyang, Luzhou, Mangshi, Nanchang, Nanjing, Ningbo, Pu'er, Qianjiang, Qingdao, Shanghai-Hongqiao, Shanghai-Pudong, Shenyang, Taiyuan, Tengchong,, Wuhan, Xi'an, Xilinhot, Xining,, Yantai, Yinchuan	2
China Eastern Airlines	Fukuoka, Nagoya-Centrair, Osaka-Kansai, Sydney, Tokyo-Narita Charter: Da Nang, Saipan, [17] Siem Reap	2
China Southern Airlines	Anshan, Beihai, Changbaishan, Changchun, Changde, Changsha, Changzhi, Chengdu, Chongqing, Dalian, Daqing, Ganzhou, Guangzhou, Guilin, Guiyang, Haikou, Hangzhou, Harbin, Heihe, Huaihua, Jieyang, Kunming, Lhasa, Mohe, Nanchong, Nanning, Nanyang, Ningbo, Sanya, Shanghai-Hongqiao, Shenzhen, Shenyang, Tongren, Urumqi, Wuhan, Xiamen, Xi'an, Xining, Yanji, Yichun, Yinchuan, Yiwu, Yongzhou, Zhangjiajie, Zhengzhou, Zhuhai, Zunyi	2
China Southern Airlines	Amsterdam, Dubai, Hong Kong, Manila, Phnom Penh, Seoul-Gimpo, Seoul-Incheon, Tashkent, Tehran-Imam Khomeini	2
China Southern Airlines operated by Chongqing Airlines	Chongqing, Diqing	2
Delta Air Lines	Detroit, Seattle/Tacoma, Tokyo-Narita	2
Dragonair	Hong Kong	3E
EgyptAir	Cairo	3E
El Al	Tel Aviv-Ben Gurion	3E
Emirates	Dubai	3E
Ethiopian Airlines	Addis Ababa	3E
Etihad Airways	Abu Dhabi, Nagoya-Centrair	3E
EVA Air	Taipei-Taoyuan	3E
Finnair	Helsinki	3E
Garuda Indonesia	Jakarta-Soekarno-Hatta	2
Grand China Air	Guilin, Harbin, Nanchang, Nanning	1
Hainan Airlines	Baotou, Changchun, Changsha, Changzhi, Chengdu, Chongqing, Dalian, Dongying, Fuzhou, Guangzhou, Guiyang, Haikou, Hailar, Hangzhou, Hohhot, Jiamusi, Kunming, Lanzhou, Manzhouli, Yichang, Yinchuan	1
Hainan Airlines	Abu Dhabi, Almaty, Bangkok-Suvarnabhumi, Berlin-Tegel, Brussels, Busan, Chicago-O'Hare (begins 3 September 2013), [18] Irkutsk, Luanda, Male, Moscow-Sheremetyevo, Phuket, St. Petersburg, Seattle/Tacoma, Taipei-Taoyuan, Toronto-Pearson, Zurich (ends 1 October 2013)	2
Hawaiian Airlines	Honolulu (begins 17 April 2014; pending government approval) [19]	TBA
Hong Kong Airlines	Hong Kong	2
Hong Kong Express Airways	Hong Kong	2
Iran Air	Tehran-Imam Khomeini	2
Japan Airlines	Tokyo-Haneda, Tokyo-Narita	3E
Jetstar Airways	Melbourne, Singapore	2
KLM	Amsterdam	2
Korean Air	Busan, Jeju, Seoul-Gimpo, Seoul-Incheon	2
LOT Polish Airlines	Warsaw-Chopin	3E
Lucky Air	Mangshi	1
Lufthansa	Frankfurt, Munich	3E
Malaysia Airlines	Kuala Lumpur	3E
Mega Maldives	Male [20]	2
MIAT Mongolian Airlines	Ulaanbaatar	3E
NordStar Airlines	Krasnoyarsk-Yemelyanovo	2
Pakistan International Airlines	Islamabad, Karachi, Lahore, Tokyo-Narita	2
Philippine Airlines	Manila	2
Qatar Airways	Doha	3E
S7 Airlines	Irkutsk, Khabarovsk, Krasnoyarsk-Yemelyanovo, Novosibirsk, Omsk, Petropavlovsk-Kamchatsky, Vladivostok, Yekaterinburg	3E
S7 Airlines operated by Globus	Ulan-Ude, Yakutsk	3E
Scandinavian Airlines	Copenhagen	3E
Shandong Airlines	Jinan, Jiujiang, Qingdao, Weihai, Wuyishan, Xiamen, Yantai, Yinchuan	3C
Shanghai Airlines	Hangzhou, Shanghai-Hongqiao	2
Shenzhen Airlines	Nanning, Shenzhen, Wuxi	3C
Sichuan Airlines	Chengdu, Chongqing, Jiuzhaigou, Kunming, Wanzhou, Xi'an, Xichang, Zhongwei	3C
Singapore Airlines	Singapore	3E
South African Airways	Johannesburg	3E
SriLankan Airlines	Bangkok-Suvarnabhumi, Colombo, Hambantota	2
Swiss International Air Lines	Zurich	3E
TAAG Angola Airlines	Luanda	2
Thai Airways International	Bangkok-Suvarnabhumi	3E
Tianjin Airlines	Anqing, Weifang, Yulin	1
Tonlesap Airlines	Charter: Siem Reap	2
Transaero Airlines	Moscow-Domodedovo	3E
Turkmenistan Airlines	Ashgabat	2
Turkish Airlines	Istanbul-Ataturk	3E
United Airlines	Chicago-O'Hare, Newark, San Francisco, Washington-Dulles	3E
Ural Airlines	Yekaterinburg	3E
Uzbekistan Airways	Tashkent	2
Vietnam Airlines	Hanoi	2
Xiamen Airlines	Changsha, Fuzhou, Longyan, Quanzhou, Wuyishan, Xiamen, Zhoushan	2
Yakutia Airlines	Yakutsk	2

Traffic by calendar year

	Passengers	Change from previous year	Movements	Cargo (tons)
2007	53,611,747		399,209	1,416,211.3
2008	55,938,136	04.3 %	429,646	1,367,710.3
2009	65,375,095	016.9 %	487,918	1,475,656.8
2010	73,948,114	013.1 %	517,585	1,551,471.6
2011	78,674,513	06.4 %	533,166	1,640,231.8
2012	81,929,359	04.1 %	557,167	1,787,027

In general, Beijing International Airport serves more than 2100 PAX/day (the peak hour capacity is 200 PAX/hour). Thus, the airport provides transportation of 25 mln passengers annually.

The scheme of flights is represented as: Morning - 130 departures/hour.

Midday and afternoon - 150 arrivals/day./

So, the airport is worked during 6.00 AM - 05.00 PM 7 days per week. It means that average number of flights per year in PEK is 183950.

Number of total movements: Winter season = 10047 movements per week Summer season = 9046 movements per week.

The total annual number of movements is thus about 52 000. This is in accordance to the estimated distribution of aircrafts in Table 3. This number is on the other hand only about half of the prognoses. The annual grand total aircraft movements were at that time estimated to be 108 000 in 2005 As for the time table of flights in Beijing International Airport, the table represented below shows us the traffic information on 20.05.2013.

Airport Charges. The airport is administered by the Egyptian Holding Co. for Airports and Air Navigation (EHCAAN), which controls four companies including: Cairo Airport Co., Egyptian Airports Co., National Air Navigation Services and Aviation Information Technology and the Cairo Airport Authority (CAA), which is the regulatory body. In 2004, Fraport AG won the management contract to run the airport for 8 years.

Charges are determined on the basis of the Maximum Take off Weight (MTOW) of the aircraft as entered on the certificates of airworthiness, independent of any respective operational criteria. In case of not submitting the particulars of the certificate, charges will be calculated according to the highest MTOW of the aircraft type.

AIRCRAFT LANDING CHARGES
AIRCRAFT PARKING CHARGES
Aircraft parking charges are payable for the parking of aircraft, for each hour or part of it. Such charges are due after the first two hours of landing by day or at night as follows:
HOUSING CHARGES
Housing charges are payable for the housing of aircraft in specified areas for every 24 hours (a day) or part of it, as follows:
Departing passenger Taxes:
paid by the passenger on ticket
PASSENGER SERVICE CHARGES:
Paid by the passenger on ticket. International and domestic departure$ 1.00
Boarding Bridge Charge at Terminal 3
Pushback/Towing
Cairo Airport Company (CAC) will collect 25 ...

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