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BEIJING (Reuters) - China has set up a 20 billion yuan (2 billion pound) investment fund to help bolster its fast-growing civil aviation industry, local media said on Monday.
The Civil Aviation Investment Fund, which is led by the parent of Beijing International Airport Co Ltd (HK:0694), is designed to help finance new airports, aviation economic zones, budget carriers, cargo and general aviation related projects, according to a reported posted on the website of the China Securities Journal.
Beijing has been investing heavily in its aviation industry in recent years to cope with its fast-growing air travel demand. A total of 754 million people took to the air last year, up nearly 86 percent from 2008, official statistics show.
Airport construction also has been picking up speed, with on-going construction at a new facility in the south of Beijing alone costing $14 billion.
About 62 Chinese cities have set up aviation economic zones where plane manufacturers, including Airbus Group NV (PA:AIR) and Embraer SA (SA:EMBR3), have set up shop alongside parts suppliers and logistic companies.
Two new budget carriers, including a subsidiary of China Eastern Airlines Corp Ltd (SS:600115) (HK:0670) also have started operations this year and more than 100 newly-founded general aviation companies are lining up for registration.
The investment fund is 20 percent controlled by Capital Airports Holding Co. HNA Group, parent of Hainan Airlines Co Ltd (SS:600221), and several fund management firms hold the remainder, the report added.
(Reporting by Fang Yan and Matthew Miller in BEIJING; Editing by Matt Driskill)