600515 · SSE · China
hnport.comFinancials as of FY2024 · latest on file
Runs the only two airports on Hainan Island, controlling every flight, passenger, and cargo shipment in and out.
Hainan Airport Infrastructure controls the only two airports on Hainan Island — Haikou Meilan and Sanya Phoenix — making every passenger, cargo flight, and airline that wants to reach China's largest duty-free tourism zone pass through facilities it operates. The Civil Aviation Administration of China assigns flight slots to these specific airports by name, so any airline wishing to serve Hainan must negotiate with this company rather than route around it, and the duty-free retailers inside the terminals earn revenue only when passengers clear those same gates. Because the slot allocations, ground handling contracts, and concession agreements are all legally anchored to the CAAC operating certificates the company holds, a competitor cannot simply build a cheaper terminal and inherit the traffic — they would need to obtain a separate certificate for an entirely new physical airport, a process requiring both regulatory approval and land capable of supporting a runway. The one thing that could unravel the whole structure is the CAAC itself: if either certificate were revoked or not renewed, the slots, contracts, and concession rights attached to it would all lapse at once.
How does this company make money?
The company charges airlines a landing fee and a terminal fee every time an aircraft touches down. It collects a percentage commission on every sale made by duty-free retailers operating inside the terminals. It charges cargo logistics companies a handling fee per ton of freight processed. It also collects parking fees and takes a franchise fee from ground transportation operators working on airport property.
What makes this company hard to replace?
Airlines that want to reach Hainan's duty-free tourism market have no other option — there is no alternative airport to route through, and abandoning the route means abandoning access to the market entirely. The Civil Aviation Administration of China controls slot allocations administratively, and those slots are not transferable between airport operators, so an airline cannot simply shift its paperwork to a different facility. Existing ground handling contracts also require regulatory approval to transfer, adding another layer of friction to any attempted move.
What limits this company?
During Chinese New Year and Golden Week, demand for flights to Hainan regularly exceeds what the two airports can handle, and there is no quick fix. Adding runway capacity requires years of approvals from the Civil Aviation Administration of China plus physical construction — land reclamation or relocating existing infrastructure — so the peak-period crunch cannot be solved on short notice.
What does this company depend on?
The company cannot operate without Civil Aviation Administration of China licenses for both Haikou Meilan and Sanya Phoenix. Jet fuel must be delivered by tanker to the island, since there is no pipeline. Air traffic control coordination with the Guangzhou and Sanya ATC centers is required for every takeoff and landing. Ground support equipment must be maintained under active service contracts. And the facilities rely on an electrical grid connection from Hainan Power Grid Company.
Who depends on this company?
Hainan tourism operators depend on these airports to deliver their customers — any degradation in operations means flight delays and cancellations that empty hotels and tour bookings. Duty-free retailers inside the terminals depend entirely on passenger throughput; if the gates go quiet, their sales collapse. Cargo logistics companies that move goods between Hainan and mainland China would lose their only air freight gateway.
How does this company scale?
Terminal concession revenue and parking fees grow automatically as more passengers move through the existing buildings, so those income streams expand without much additional cost. Runway and air traffic control capacity are the hard ceiling — replicating either requires a multi-year approval process from the Civil Aviation Administration of China and physical construction that involves reclaiming land or relocating infrastructure, so that bottleneck does not go away as the company gets bigger.
What external forces can significantly affect this company?
Chinese visa and tourism policies directly control how many international visitors can reach Hainan's duty-free zones, so a policy tightening would reduce passenger volumes overnight. Fuel price swings affect whether airlines can afford to keep over-water island routes profitable, which in turn affects how many flights they schedule. Cross-strait political tensions can disrupt air corridor access between Hainan and Southeast Asian destinations, cutting off a significant share of international routes.
Where is this company structurally vulnerable?
If the Civil Aviation Administration of China declined to renew the operating certificates for Haikou Meilan or Sanya Phoenix — because of a compliance failure, a policy change, or a political decision to restructure Hainan's airspace — the flight slots, ground handling contracts, and duty-free concession agreements that are all legally tied to those certificates would lapse at the same time, dismantling the entire operation at once.
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As of FY2024 (year ended December 31, 2024). Newer annual figures aren't yet on file.
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