Business Aviation in China

Business Aviation in China

more, general aviation (includ- Hawker Beechcraft has had ing business aviation) has been success with its Hawker 4000 specifically earmarked for pos- in China, and increasingly with itive reinforcement and this has the smaller 900XP too. Accord- already resulted in initiatives to ing to Jeff Anastas, the U.S. free up access to airspace for pri- airframer’s vice president for vate aircraft operators. China, many Chinese buyers This year will see a wholesale are not making aircraft selec- change in the political leader- tion decisions based on careful ship of China, with a new gov- analysis of their actual mission ernment due to be appointed. needs. “The Chinese don’t par- Close observers in the coun- ticularly like being asked about try’s business aviation commu- this [how they intend to use the nity have suggested that this aircraft], and you have to earn could result in a more consul- the right to advise them in this tative approach to regulation, way,” he said. “Unless they ask but also yet more bureaucracy. our opinion, we don’t offer it. A change of leadership in Hong They tend to listen to banks and Kong could also have ramifica- go for strong brand names.” tions for the regulatory environ- The first Airbus Corporate Jet ment in which business aviation was sold in China in 2005; total is being nurtured. sales passed 20 only recently. “It is still only the beginning,” ACJ Manufacturers See vice president François Chazelle Cause for Optimism told AIN. “The potential is huge The Chinese Year of the Dragon is off to an auspicious beginning, at least for According to Dassault Fal- because most people [in China Jackie Chan, who took delivery of his custom-designed Embraer Legacy 650 con Jet international sales who have bought a private jet] last month. The aircraft, which is adorned with dragons and Chan’s personal director Jean-Michel Jacob, want to upgrade, so we expect to logo emblazoned on the tail, is the first Legacy 650 to be delivered into China. the Chinese government’s con- sell to people who currently have Chan will also serve as the official brand ambassador to Embraer, promoting its servative approach is governed a Gulfstream or a Falcon.” entire line of aircraft in the China market and globally. –J.E. by a realistic assessment of the According to Airbus, which country’s infrastructure lim- has offices in Beijing and Hong its. “They prefer to be care- Kong, many sales in China are its airline customers, and ACJ Horner maintains that re- 60XR, the Challengers 300 and BUSINESS AVIATION IN CHINA ful because they don’t want to made to privately owned corpo- owners and operators are now strictions on the importation 605 and the Global 6000. Inter- Is now the time for Chinese bizav to come of age? by Charles Alcock see accidents, and so they only rations, where the main share- benefitting from these. The man- of aircraft are being eased pro- est in the long-range Globals is let aircraft enter the country at holder is a wealthy individual ufacturer recently approved gressively and that the past 12 rising in a Chinese business com- 中国商务航空 what they consider to be a rea- who is not accountable to a maintenance company Ameco months have seen marked prog- munity that increasingly wants sonable pace,” he told AIN. wider group of shareholders in Xiamen to provide cabin com- ress in simplifying operations. to be doing business on a global Nonetheless, Dassault does for such investments. In recent pletions for ACJs. That said, the fundamental scale, and some of the initial With precious little sign of a Republic being such a land of country’s aircraft register is rig- relatively few established man- but they are restricted in terms see the pace of business air- years, much of the cash funding Even through the dark days requirement to be able to move purchase agreements for the new meaningful economic recovery opportunity for business leaders orous, to say the least. agement companies. of which airports they are per- craft imports picking up, and aircraft deals in the country has of business aviation’s linger- money out of China to purchase Global 7000 and 8000 models in the main Western economies throughout the world, there is There are tales of aircraft sit- Most of the operating com- mitted to operate into. Foreign it believes that well-connected come from IPOs. ing downturn, China has con- aircraft continues to be a chal- have come from the country. of North America and Europe, more and more motivation to fly ting on tarmac at ports of entry panies are offshoots of Chinese operators also have to hire the companies such as Minsheng will “There are some constraints tinued to be a beacon of hope lenge for would-be buyers and Cessna also has sought to tap the business aviation industry is into and within this vast coun- waiting for release to their own- airlines, which find it easiest to services of a local, Chinese- be critical to connecting custom- [on the importation of aircraft] for Bombardier, with senior vice Bombardier has learned to local knowledge in its efforts to pursuing growth more intently try. This has been a tough prop- ers. In some cases buyers opt to get the necessary approvals, and speaking navigator at costs esti- ers with those who can help them and it could be that authori- president sales Bob Horner con- manage expectations in terms penetrate the Chinese market. than ever in the emerging mar- osition, but it’s getting somewhat have their jets delivered outside operators based in the quasi-off- mated at up to $1,500 per day. to maximize the benefits of their ties feel overwhelmed,” Chazelle firming a continuing trend of of how this and other limit- Last year it appointed Kevin kets of the East. Nowhere epit- more straightforward. China and registered there, but shore enclaves of Hong Kong and Non-Chinese operators re- aircraft. Jacob indicated that acknowledged. But he main- growing business there each ing factors can slow the pace Wu as its new regional vice omizes these expectations quite Tangible evidence that the this means they are much more Macau. Increasingly, faster grow- main tightly restricted in terms early adopters of business avia- tained that Airbus clients benefit quarter. “There is still a lot of of deliveries. “Now when we president for China, Taiwan, like China, with its soaring cor- Gold Rush drive to get China’s restricted in how they can oper- ing aircraft management compa- of the number of mainland air- tion in China have generally grav- from Chinese officials’ familiarity education required there [about sit down to sell an aircraft, we Hong Kong, Macau and Mon- porate and private wealth. rampant business elite flying ate within China. nies are joint ventures between ports they can use. For the most itated toward the largest models. with its aircraft since the Euro- the ways and means of estab- can better inform clients about golia and is now benefitting There is no doubt that China’s privately came in October when Chinese airlines and private com- part, they are confined to the Going forward, he believes that pean company’s airliners are lishing business aviation], but what it will take to make a deliv- from his 26 years of hands-on business aviation community has Beijing-based leasing group Impediments to panies, including Western-based major airports, obviating a key peer-group recommendations already so ubiquitous in China. the support structures [for oper- ery and that it will likely have to experience in China’s aviation expanded at an impressive rate Minsheng Financial Leas- Business Aviation Growth groups, with more experience in advantage of business aviation: from friends and close business Airbus already has pilot train- ations] and growing acceptance happen 12 to 18 months down sector. Wu started life as an air in the past few years, but this has ing announced two major new To Western eyes, Chinese business aviation. Among the the ability to fly closer to the associates will be major drivers ing and aircraft spares centers of this type of aircraft are com- the road,” he explained. traffic controller and went on to been achieved from a low base sales contracts with Dassault officialdom’s seemingly feet- main and emerging players are passengers’ final destination by of aircraft purchase choices. established in China to support ing along,” he told AIN. The Canadian manufac- teach air traffic management at and in global terms the size of its and Embraer, adding to earlier dragging approach to allowing Metrojet, Deerjet, Asia Jet, Air using smaller airports. With air- turer has strengthened its Bei- the China Civil Aviation Uni- fleet (around 150 jets registered deals with Gulfstream. That private aircraft into the country China’s Beijing Airlines, Hong- line traffic burgeoning in China, . jing-based sales team. Its new versity before becoming direc- in China by the end of last year) they were the only major deals might seem like protectionism. kong Jet and Hainan Airlines sub- access to the country’s major air- regional vice president, Michael tor of international affairs for remains fairly modest. Questions announced at last year’s NBAA But the fact is that China has no sidiary Beijing Capital Airlines. ports depends on getting land- Han, is Chinese and so are all of the CAAC. In 2002 he joined remain as to the extent to which Convention in Las Vegas spoke home-built business aircraft to Another constraint on the ing slots, and these are routinely his support staff–an approach U.S.

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