Harbour Air partners with Chinese company
Vancouver-based firm will help set up China’s first float-plane service to major cities
Vancouver-based Harbour Air, the world’s largest seaplane airline, has entered into a partnership with Zongshen Industrial Group to export its commuter float plane service to China.
The deal, which was approved by the Canadian Transportation Agency last week, will see Zongshen’s Tianchen General Aviation Co. own 49 per cent of Harbour Air Group, including 25 per cent of the voting shares.
In return, Harbour Air will provide professional consulting to Tianchen, which is working to become the first general aviation company in China providing float-plane service to major cities.
As part of the deal, Harbour Air will lend its name to a new airline, Harbour Air China.
The deal could result in the first of eight routes in China starting as early as next year, including service to Zongshen’s home city of Chongqing.
In addition, Harbour Air will help train Chinese pilots, of which there is a shortage, in the art of flying seaplanes. It may provide some of its 80 Canadian pilots for the new routes over the short term.
Zongshen Industrial Group is owned by Chinese billionaire and entrepreneur Zuo Zongshen, who rose from relative obscurity as a motorcycle mechanic to become the leader of China’s largest maker of motorcycles.
His company, which started in 1992 as China was beginning to encourage private businesses, now employs more than 25,000 people and produces four million motorcycles a year.
It has diversified into a number of areas, including finance, mining, power machinery and real estate.
This isn’t Zuo’s first foray into B.C. business. He is developing more than 600 acres of land at Cape Roger Curtis on Bowen Island. In 2013 he also signed a memorandum with the B.C. Institute of Technology to develop technology research and training for the liquefied natural gas (LNG) industry.
Greg McDougall, Harbour Air’s CEO, said the deal came about after China opened its military-controlled airspace under 10,000 feet to low-altitude civil flights. Despite its massive growth, China does not have an established and widespread general aviation industry other than large jet service to major cities.
With many major cities on waterways and lacking in airport infrastructure, Zongshen Industrial Group saw Harbour Air’s seaplane-based commuter service as a potential model for expanding China’s general aviation, McDougall said.
“The plan is, and the reason Zuo wants to become a part of this company, is he sees float planes as a way to introduce general aviation to China,” he said. “There aren’t any turboprops carrying passengers in China on a scheduled basis. So Zuo has astutely recognized that seaplanes are the way to almost instantaneously provide that service because you don’t have to put in the infrastructure in terms of airports. The vast majority of Chinese cities have access to water, so a dock is very easy.“
Zuo was not available for an interview. In a statement, however, he said China faces major transportation challenges as it urbanizes.
Under Canadian aviation rules, the majority of Harbour Air will remain owned by McDougall and his partner, Brent Davies. In order for Zongshen to acquire control, it would need to have Canadian owners, something that McDougall said is not in serious discussion.