Busi­ness jet sec­tor to see fur­ther growth

China Daily (Canada) - - LIFE - By SHI JING in Shang­hai shi­jing@chi­nadaily.com.cn

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

Ac­cord­ing to the China Busi­ness Avi­a­tion Spe­cial Re­port 2016 jointly re­leased by Hu­run Re­port and Min­sheng Fi­nan­cial Leas­ing, at least 1,420 rich Chi­nese peo­ple have the po­ten­tial to buy 1,750 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 the es­ti­mated 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 will be val­ued at $71 bil­lion in to­tal.

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

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

Be­sides ef­fi­ciency, in­de­pen­dency and pri­vacy, “face” has be­come a key rea­son for buy­ing busi­ness 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 wealth with the pos­ses­sion of a plane.

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

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