-
Advertorial
-
FOCUS
-
Guide
-
Lifestyle
-
Tech and Vogue
-
TechandScience
-
CHTF Special
-
Nanshan
-
Futian Today
-
Hit Bravo
-
Special Report
-
Junior Journalist Program
-
World Economy
-
Opinion
-
Diversions
-
Hotels
-
Movies
-
People
-
Person of the week
-
Weekend
-
Photo Highlights
-
Currency Focus
-
Kaleidoscope
-
Tech and Science
-
News Picks
-
Yes Teens
-
Budding Writers
-
Fun
-
Campus
-
Glamour
-
News
-
Digital Paper
-
Food drink
-
Majors_Forum
-
Speak Shenzhen
-
Shopping
-
Business_Markets
-
Restaurants
-
Travel
-
Investment
-
Hotels
-
Yearend Review
-
World
-
Sports
-
Entertainment
-
QINGDAO TODAY
-
In depth
-
Leisure Highlights
-
Markets
-
Business
-
Culture
-
China
-
Shenzhen
-
Important news
在线翻译:
szdaily -> In depth -> 
Infrastructure and red tape hamper private jet industry in China
    2014-11-04  08:53    Shenzhen Daily

    CHINA’S business jet fleet is growing rapidly and the aviation industry sees great opportunity in the country. However, challenges ranging from infrastructure to public perception mean that it will be years before the country’s private fliers get the same flexibility and service that are found in more developed markets.

    Industry executives are positive about long term prospects for the industry. However, growth is expected to slow over the short term because of insufficient infrastructure and the national mood against public displays of wealth.

    “There has been a crackdown on conspicuous spending in China, and the effects will extend well into next year,” says Jeffrey Lowe of Asian Sky Group, a business aviation consulting firm, in an interview with Financial Times.

    Private jet ownership in China began as a personal luxury for the country’s wealthy elite and only now is beginning to evolve into a service demanded by Chinese companies as they expand overseas.

    With that shift in demand come changes in service requirements, buyer preferences, and public perception.

    Chinese buyers still prefer wide-body jets, in part for the prestigious image. The distances Chinese executives need to fly on a regular basis also influence their tastes, as they are as likely to fly to Sydney or Tokyo as to a Chinese city.

    Jackie Wu, an aviation specialist with Jetsolution International Services, which provides aircraft transaction, maintenance and operations support, notes that many wealthy Chinese are basing themselves and their businesses in Hong Kong or Singapore.

    Wu, who predicts 10 per cent annual growth in aircraft numbers over the next few years, says there are 377 private jets in China, with an additional 344 Chinese-owned jets stationed around the region — a relatively small number given there are about 20,000 private jets operating globally, according to aviation experts.

    China’s private jet sector is facing many of the same infrastructure constraints that the commercial industry is facing, which result in frequent and lengthy delays for passengers.

    Brian Foley, an independent aviation consultant, says the industry is being stymied by lengthy application processes for entry permits, flight plan approvals and routing requests, which undermine the efficiency and flexibility that appeal to corporate executives.

    There are fewer than 200 civil airports available to private jets, and landing at many of them requires application processes that take days. The United States has some 5,200 airports open for private jets and permissions take only a few hours.

    China is seen as one of the few developing markets which could support a fractional ownership model in which customers buy shares in the service rather than in a specific aircraft. This gives them guaranteed access for a predetermined number of days, hours or miles.

    Eric Wong, China vice chairman of NetJets, which pioneered the fractional ownership model, says: “In China, the infrastructure does not support such a product. The congestion in the air and on the airport tarmac, the restrictions on operations mean that a fractional product is not yet attractive.”

    NetJets has partnered with Chinese private equity firm Hony Capital and an investment unit of the Fung group to provide services in China, and last month secured a licence to fly from the Chinese civil aviation authority.(SD-Agencies)

深圳报业集团版权所有, 未经授权禁止复制; Copyright 2010, All Rights Reserved.
Shenzhen Daily E-mail:szdaily@szszd.com.cn