Mingsheng Financial Leasing and Hurun Research Institute recently released a joint report on Chinese business aviation. The “Chinese Business Aviation Special Report” forecasts a requirement for 1,450 more business jets in China for the short term, growing to 2,300 jets required in five years. The report bases its forecast on the number of current and expected wealthy Chinese citizens.
Interestingly, the report cites problems with flight plan approvals and and landing rights as reasons for individuals not purchasing business jets when they are able, as well as a fear of “standing out too much in the political climate.” As the Alta Center for Chinese Aerospace Studies (ACCAS) has frequently spotlighted, policy reforms in China are key to unlocking the vast potential of China’s aviation industry. Flight plan approval complications, despite CAAC’s stated intentions and efforts to simplify and reform the process, continue to serve as a thorn in the side of aviation operators and the industry as a whole. Business jets, when used properly and effectively, are used flexibly and responsively to further a company’s business and increase its competitiveness. Mingshen and Hurun’s report reminds us of the importance of reforming flight plan processes in China. To date, most multi-national corporation (MNC) business jet operations in Asia remain based outside of mainland China despite the strong case for business jet usage to, from, and within China. Flight plan approval problems are among the chief reasons why MNCs are reluctant to base in China. As to the “political climate”, readers unfamiliar with what this means will benefit from researching China’s “anti-corruption campaign” to understand the context of that statement.
The report is a fantastic analysis of where business jet sales are heading in China and the forces that will influence Chinese business aviation going forward. The press release from Mingsheng and Hurun provides a summary, while the full report in Chinese Mandarin is also available in PDF format. I highly recommend anyone interested in Chinese business aviation to review this quality product.
