Business jet sector to see further growth

A recent slowdown in growth in China's business jet industry won't affect the sector's long-term prospects, a new report says.

According to the China Business Aviation Special Report 2016 by Hurun Report and Minsheng Financial Leasing, at least 1,420 wealthy Chinese people have the potential to buy 1,750 business jets, worth a combined $52 billion.

More than 9,000 super-rich people in China have the potential to charter a plane, with the estimated flying time reaching 205,000 hours a year, while 1,850 people are expected to buy 2,320 business jets, valued at $71 billion in total, in the next five years, the report says.

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

However, there is still much room for growth compared with mature Western markets. Business started to pick up especially in the first quarter of this year, he says.

In addition to efficiency, independence 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.

There are also various reasons for not to buy a business jet, too. 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.

shijing@chinadaily.com.cn

(China Daily Africa Weekly 04/22/2016 page29)