China sets up $3.3b aviation investment fund: report

China has set up a 20 billion yuan ($3.25 billion) 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, is designed to help finance new airports, aviation economic zones, budget carriers, cargo and general aviation related projects, according to a report 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 has also been picking up speed, with ongoing 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 and Embraer SA, have set up shop alongside parts suppliers and logistics companies.

Two new budget carriers, including a subsidiary of China Eastern Airlines Corp, also started operations this year and more than 100 newly founded general aviation companies are lining up for registration.