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UPDATED: March 7, 2014 NO. 10 MARCH 6, 2014
Up, Up and Away!
The opening up of low-altitude airspace and better general aviation infrastructure mean the private jet industry looks set to take off
By Lan Xinzhen
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Gao Yuanyang, Director of General Aviation Industry Research Center of Beihang University, said the opening up of China's low-altitude airspace below 1,000 meters by 2015 is advancing as planned. The classified management of the three categories of low-altitude airspace won't be changed, but the proportions of airspace subject to monitoring and report will be significantly increased in the future.

A huge market

From the gap between the Chinese and U.S. markets, the true potential of China's general aviation market can be seen.

According to figures from the China General Aviation Association, China now has only 1,610 registered general aviation aircraft, while according to the International Council of Aircraft Owner and Pilot Associations, the United States now has 228,000 general aviation aircraft, about 140 times the figure in China.

At present in China, there are only 70 airports for general aviation and about 320 temporary landing points. In contrast, there are 19,000 general aviation airports in the United States.

By the end of 2013, fewer than 4,000 general aviation pilots had registered in China, while in the United States, the number of licensed general aviation pilots surpassed 370,000.

Gao estimated that by 2020, the market size of the whole general aviation industry and its supporting industries will surpass 1 trillion yuan ($163.4 billion).

Li Chen, President of Jinggong (Beijing) General Aviation Co., said the company is very optimistic about the private jets market. As one of the four largest general aviation companies in Beijing, Jinggong is mainly engaged in the sale of general aviation aircraft, pilot training, private missions and maintenance of private jets.

According to Li, in the coming years, China's general aviation industry will be primed for continuous development, and infrastructure investment and construction will thus grow rapidly. There will be more general aviation companies and flying clubs across the country, and the number of general aviation aircraft will grow remarkably, stimulating the development of supporting services.

In order to accelerate training of pilots, the CAAC has relaxed the requirements for private pilot licenses in 2012. Those aged 17 or above who have an education of junior middle school and above and meet the physical requirements for the Chinese driving license are eligible to apply for a private pilot license after going through 40 hours of comprehensive study and 40 hours of flight training before they sit for the final exams.

Gao said that at present a general aviation aircraft costs the same as a middle- or high-end car in China. The purchasing power in the Chinese market is not a problem, the only restriction being the current weak infrastructure for general aviation. After detailed policies of opening up the low-altitude airspace are issued and implemented, more general aviation infrastructure, such as airports and air traffic control systems, will be built across the country, pushing forward the development of the market. After that, the investment opportunities in the manufacturing, operation and maintenance of general aviation aircraft will surge.

According to figures from the Aircraft Owners and Pilots Association of China, by July 31, 2013, there were 116 cities in the process of building or planning to build general aviation industrial parks.

Gao said that in the next 10 years, China's general aviation market will grow by more than 15 percent each year, and by 2020, China will require nearly 10,000 general aviation aircraft.

International general aviation aircraft makers will be the main players in China's general aviation market due to the limited productivity of domestic makers. Dassault Falcon Jet Corp. has sold 30 jets in China, 20 of which will be delivered in 2014-15. Canadian manufacturer Bombardier has also sold more than 100 general aviation aircraft in China. All international general aviation companies that have entered China are now ready for a robust growth in business.

Email us at: lanxinzhen@bjreview.com

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