China's business jet sector to see further growth_Industry news_News

China's business jet sector to see further growth

Date: 2016-04-14 From: China Daily Hits: 239

Note: A recent slowdown in growth in China's business jet industry will not affect the long-termprospects of the sector, a report said.

A recent slowdown in growth in China's business jet industry will not affect the long-termprospects of the sector, a report said.

According to the China Business Aviation Special Report 2016 jointly released by Hurun Reportand Minsheng Financial Leasing, at least 1,420 rich Chinese people have the potential to buy1,750 business jets, which are worth more than $52 billion.

More than 9,000 superrich people in China have the potential to charter a plane, with theestimated flying time reaching 205,000 hours per year.

In the next five years, a total of 1,850 people are expected to buy 2,320 business jets, which willbe valued at $71 billion in total.

Qiao Kai, vice-president of Minsheng Financial Leasing, said that the Chinese business jetindustry has been developing steadily in recent years although the growth rate has been slower ifcompared with the peak period.

There is still much room of growth if compared with mature Western markets. Business started topick up especially in the first quarter of 2016.

Besides efficiency, independency and privacy, "face" has become a key reason for buyingbusiness jets. According to Rupert Hoogewerf, founder and chief researcher of Hurun Report,business jets buyers always find it easier to seek partners when people recognize their wealthwith the possession of a plane.

But there are also various reasons for not to buy a business jet. The complicated procedure ofapplying for routes and parking is the biggest obstacle when owning a plane. Other reasons suchas high maintenance costs and being too high-profile have also had an impact on purchases.

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