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Report: Demand for Business Aviation Remains Strong in Asian Region
April 17, 2014
The 2014 Asian Business Aviation Conference and Exhibition (ABACE2014) offered significant evidence of the continued strong demand for business aircraft, products and services in the region.
As one example, Hong Kong-based aircraft sales and consultancy firm Asian Sky Group (ASG) chose ABACE2014 as the ideal venue to release its year-end report on the industry's performance in 2013. The “Greater China Business Jet Fleet Report” found that fleet totals throughout mainland China, Hong Kong, Macau and Taiwan grew from 203 business aircraft operating in the region in 2011, to 371 as of the end of 2013. Review the report.
The region's compound annual growth rate of 34 percent from 2007 to 2013 also far outpaced the global rate of 5 percent compounded growth over the same period. ASG cited robust economic growth throughout China as a primary factor for continued healthy sales of business aircraft, as well as successful initial public offerings for companies throughout the Asia-Pacific region, and increasing government support for the industry.
“More and more companies are also increasingly using business jets as a tool to support corporate international growth and integration,” the report added.
Government leaders have also recognized these impressive totals, as seen in Civil Aviation Administration of China Deputy Administrator Wang Zhiqing's presentation at the Opening General Session of ABACE2014.
According to Wang, 189 general aviation (GA) companies established operations in China through the end of 2013, marking a 41-percent increase over 2012 numbers. The overall GA fleet grew to 1,654 aircraft, more than a 23-percent increase, and total GA flight time increased 10 percent, to 569,000 hours.
The ASG summary cited continuing efforts by the Chinese government to ease airspace restrictions as a key factor driving these promising numbers, with future efforts likely to spur sales of smaller aircraft.
“China has the second-largest economy in the world, yet it holds less than 2 percent of the world's business jets,” according to the report. “The business aviation industry however is developing rapidly and signs of a maturing market are evident.”