China Southern Airlines plans to assign 250 aircraft to Beijing’s new airport to operate more 900 daily flights by 2025 in an effort to enhance its position in the Beijing market.

As early as 2011, the Guangzhou-based carrier signed a cooperation agreement with the Beijing government to allocate 200 aircraft—Airbus A330s and A380s—to the airport over the next 10 years.

The new airport—which broke ground earlier this week and is scheduled to open in 2019—is projected to handle 45 million passengers in 2020, 72 million in 2025, and 100 million in the longer term.

China Southern expects to invest CNY14.8 billion ($2.3 billion) in the new 1.09 million sq m Beijing airport.

The company has mapped out three development phases for the new base:

  • Phase 1 will gradually transfer the carrier’s operation from current Terminal 2 of Beijing capital airport to the new airport by 2019;
  • Phase 2 will build a domestic and international route network between 2020 and 2025; and
  • Phase 3 will broaden its domestic and international route network by a big margin and boost flight frequencies between 2026 and 2030.

The carrier established a Beijing branch company in 2005. So far, China Southern has allocated 70 aircraft, including its five Airbus A380s for the Beijing market on 52 domestic and international routes with more than 240 daily flights.

Ten Chinese carriers are committed with moving to Beijing’s new airport. Shanghai-based China Eastern Airlines also plans to assign 150-200 aircraft to Beijing’s new airport.