Money

Investment is taking off for airline center in Tongzhou

By Wang Chao (China Daily)
Updated: 2010-05-27 07:51

Hainan Airlines (HNA) will invest 30 billion yuan to build a massive Beijing International Aerotropolis (BIA) in Songzhuang, Tongzhou district.

The 44-hectare project kicked off on Wednesday. On completion it will cross into Shunyi district and the city center, but be mainly located in Tongzhou district, 4.5 km from Beijing Capital International Airport, the airline said.

Chen Feng, board director of HNA, said the BIA would become the commercial center of Tongzhou district, capable of accommodating four major tenants: the offices of Hainan Airlines, financial service companies, e-commerce companies and entertainment companies.

Hainan Airlines is the fourth-largest airline in China after Air China, China Eastern Airlines and China Southern Airlines. According to Chen, the airline is expected to make up to 100 billion yuan in 2010.

"Beijing is now our largest market. We contributed more than 300 million yuan in tax to the municipal government in 2009," Chen said.

He said the BIA project is also expected to generate other positive outcomes for the capital.

"The project will provide at least 80,000 jobs and contribute 30 percent of the area's GDP, as well as 35 percent of government revenue, to Tongzhou," Chen said.

According to the schedule set by HNA Property Holding Co Ltd, a subsidiary of HNA, the company will perform land consolidation by the end of 2010, complete major constructions before 2014, and finish the whole project by 2015.

The massive investment is just one part of Tongzhou's ambitious 10-year development plan.

Wang Yunfeng, Party secretary of Tongzhou district, said they are trying to build Tongzhou into an international city within a decade. In the first five years, Tongzhou government will hold high-end investment forums to attract money and provide services for enterprises intended to settle in Tongzhou.

"We will have more solid achievements by the end of 2010," he said.

Tongzhou district, frequently cited as a "satellite city" of Beijing, is 16 km from the airport. In 2009, it had a population of 1.08 million and a GDP of 25 billion yuan.

"The land for BIA is the last piece available within the six km perimeter of the airport," said Wang.