Emerging Markets
Total Page：16
File Type：pdf, Size：1020Kb
Business Aviation’s Inside Cessna forged a joint venture with Avic last Industry looks to year to begin manufacturing general aviation New markets still climbing 20 aircraft in China. Cessna CEO Scott Ernest, left, announced the deal at ABACE. EMERGING MARKETS Manufacturer perspective: Gulfstream 20 China’s leaders China’s leaders to set bizav free? 21 intermittent takeovers of airspace, which Latin American sector flexes muscle 22 to set bizav free can leave aircraft sitting on the run-up Bizav’s New Markets area with engines running for unspecified Bizav in Brazil leads the way 22 Still Climbing Despite Obstacles by Amy Laboda amounts of time, as well as the inability Economic diversification drives growth in Africa 24 for these air cadets to perform a proper When the financial crisis that exploded in late 2008 began Indian government delays business aircraft deals 24 Much as business aviation might like to cross-country flight because of a lack of to ravage Western economies in 2009 and 2010, the business see itself as being in a class of its own, its low-level air routes between cities with Charter sector looks to new lands of opportunity 26 aviation industry took well founded comfort from the fact that impressive, but far from straightforward, airports. The rush to provide trained (but escalating demand from emerging markets farther east seemed Manufacturer Perspective: Global charter growth is a complex mission 26 emergence in China has to be considered not necessarily experienced) pilots to the to be shoring up otherwise sagging demand in traditional strictly in the context of the country’s country’s domestic airlines also leaves the include inflexible access to takeoff and landing slots, wider air transport ambitions. Those in question of safety wide open. Current markets. Since then the international profile of business aviation Gulfstream starts airspace constraints and inadequate infrastructure in the industry who have become frustrated Chinese-provided statistics show an acci- has continued to expand, prompting manufacturers and service terms of airports, ground support, aircraft mainte- at the apparent slow pace of progress in dent rate of 0.107 accidents per million providers to scramble to boost their global presence. to reap rewards from nance and training. resolving issues such as access for busi- aircraft movements and 0.051 per million However, it is clear that some expectations of rapid, In addition to actively engaging with civil aviation ness aircraft to airspace and airports McINTOSH DAVID flight hours, but this is with many expe- explosive growth have been confounded by continuing long-term investment authorities in countries such as China to resolve regu- would do well to keep in mind that for the rienced foreign contract pilots and tech- problems in getting business aviation established on a sound latory issues that Neal characterizes as “to be expected Chinese government these tasks will have has estimated that Chinese airlines will “You have to have airspace to fly a lot nicians in the system. It remains to be footing due to infrastructure and regulatory limitations in key in developing markets in emerging markets,” Gulfstream has enthusiastically to fall in line to get tackled as part of its need to buy 5,000 new airplanes by then of aircraft and it is just not available right seen how safe the system is as foreigners countries such as China (see article on facing page) and India. invested in improving those aspects of infrastructure carefully orchestrated long-term strategic to meet the demand. China is currently now,” Honeywell Aerospace Asia-Pacific rotate out of the hands-on positions in India continues to be a battleground for the business by Charles Alcock that it can change. plans for aviation as a whole. building as many as 100 airports, and president Briand Greer told AIN when the cockpit. aviation lobby, with growing frustration over issues such as For example, in late November it opened the first Next month will see the new Commu- expanding many more. asked why China’s bizav fleet appears not Some progress is being made, though. restricted and costly parking arrangements at airports. The Gulfstream Aerospace is a prime example of how factory-owned business jet service center in China at nist Party of China leader Xi Jinping While Western airframers stand to to be growing as fast as anticipated. The In China’s recently published Civil Avia- country’s Business Aviation Operators Association is also Western business aircraft makers have begun to capi- Beijing Capital International Airport. The joint ven- formally take over from Hu Jintao as benefit hugely from the exponential U.S. company has been a partner to the tion Statistics report for 2012, the govern- locking horns with India’s minister for civil aviation, who appears talize on emerging markets in recent years. Last year, ture with Hainan Airlines Group subsidiaries Hainan China’s President. Understandably, this expansion of China’s fleet, they are also improvement of Chinese airspace and ment states that “air bridges” (airways) sales outside the U.S. accounted for fully 70 percent Aviation Technik and Deer Jet recently received Part shift in China’s political leadership has mindful of the fact that China’s state- infrastructure for nearly a decade. have been built connecting 54 cities in to have decided that he must personally approve who may buy of its business, which Scott Neal, senior vice president 145 approval from the Civil Aviation Administration stimulated hopes of accelerated prog- owned aerospace industry has its own Greer said that China has the advan- mainland China and 10 cities in Taiwan. a business aircraft and when (see story on page 24). for sales and marketing, acknowledges was a big shift of China. The 104,000-sq-ft facility is staffed by fac- ress, but the prognosis of most China clear ambitions to see home-built prod- tage of using purely modern technolo- The nation’s airports handled nearly 678 Meanwhile, Russia seems to be becoming a more user- from fairly recent history when it was little more than tory-trained Gulfstream and Deer Jet technical staff specialists seems to dampen expectations ucts advanced. Commercial Aircraft of gies for opening its airspace and making million passengers and 11.94 million friendly environment for business aviation. For example, the approximately 25 percent. That said, last year did also and can draw on additional parts stocks that the that remaining obstacles to bizav growth China (Comac) is slowly but surely devel- it navigable by modern jet aircraft. In tons of cargo and mail, for year-on-year Russian United Business Aviation Association has won at least see some resurgence in demand from the U.S. market. OEM holds in both Hong Kong and Singapore. in the People’s Republic are about to be oping its new ARJ21 regional jet and Honeywell’s view, RNP and GPS make growth of 9.2 percent and 3.1 percent, a partial removal of punitive import tariffs on foreign-built aircraft. “Generally, we are pleased with the way these Also last November, Gulfstream established a new swept aside overnight. C919 narrowbody transport. ground-based instrument landing systems respectively. Beijing Capital International The Middle East continues to balance challenges to emerging markets are growing and accepting business company flight department in Hong Kong, staffed by One key factor is the continued domi- Beyond this, China Aviation Industry and ground-based en route navigation Airport’s passenger traffic exceeded 80 business aviation growth with its potentially huge opportunities. five experienced demonstration pilots nance of the People’s Liberation Army General Aircraft (Caiga) is stepping up aids unnecessary. million, making it the second busiest With political fragmentation still taking hold of much of the north who are available to support owners (PLA) in the management of this vast work on its Primus 150, having selected airport in the world–and so not neces- Skills Shortage of the region, the Arabian Gulf states remain the epicenter of and operators throughout the Asia- country’s airspace. Existing policy does General Electric’s H85 to power this sarily a convenient bizav gateway. growth in that part of the world. But Ali Al Naqbi, chairman of Pacific region. Part of their role is to make provision for some easier access turboprop single late last year. At last China’s emerging aviation sector also General aviation saw rapid growth the Middle East Business Aviation Association, made it clear support training provision, and this has to the skies by general aviation fliers, November’s Airshow China in Zhuhai, continues to face a skills shortage. In a in 2012, according to the report, been further enhanced by the recent but the pace and extent of this change Comac subsidiary Avic (which is Caiga’s new forecast published in July last year which pegged annual general aviation at December’s MEBA show in Dubai that the business aviation addition of full-flight simulators for remain firmly in the hands of China’s parent company) revealed a scale model Boeing predicted that China alone needs flight hours at 486,000, up 6.1 percent community will not shy away from dealing with vexed issues the G550 and GIV at the FlightSafety military leadership. of what looks like being a six- to eight- 71,300 pilots and 99,400 technicians over over 2011. As of November 30, offi- such as the prevalence of illegal charter operations. Learning Center in Hong Kong. For example, the PLA even dictates passenger business jet. the next 20 years. The Chinese now have cial Chinese statistics show there were In some regions demand appears to have cooled slightly when the airspace that is supposed to be Meanwhile, Cessna is pressing ahead numerous flight training centers, many 149 general aviation enterprises and 70 (albeit still remaining at well above-average levels).