Aviation market hots up as industry showcase opens

Shanghai is planning to expand its business aviation facilities to meet growing demand, with some industry figures suggesting there could be as many as 650 business jets operating in the country by the end of 2022.

"We will add more business aviation facilities to Shanghai's two airports, said Jing Yiming, vice-president of Shanghai Airport Authority and chairman of Shanghai Hawker Pacific Business Aviation Service Center.

"There will be a new hangar near the existing one at Hongqiao International Airport.

"We also plan to build a fixed-base operation that will provide support services for business jets at Pudong International Airport together with a parking area," said Jing.

Up to last year, China had 336 registered business jets, and Shanghai's airports accounted for a third of the nation's total business flights, or 3,800 flights, according to Jing.

More efforts will be made to shorten the turnaround times for flights, Jing said, so that there can be more landings and takeoffs in the city.

Shanghai established the nation's first one-stop business jet service base, at Hongqiao Airport in March 2010, and the facility is now designed to handle 6,000 flights a year.

Fixed-base operations are commercial businesses operating within airports offering various services such as refueling, aircraft hangers, parking services, aircraft rental, maintenance and flight instruction.

Jing was speaking on the eve of the 2013 Asian Business Aviation Conference and Exhibition, the largest business aviation event in Asia, which starts on Tuesday in Shanghai, with more than 180 exhibitors taking part.

The potential of China's business and corporate airline sector has attracted many new players.

According to some recent industry figures from Brazilian aerospace conglomerate Embraer SA, China is projected to have a business jet fleet of 650 by 2022, accounting for 7 percent of the world's total, valued at $24 billion.

Current estimates put the proportion of registered business jets in the Chinese mainland at less than 1 percent of those in the United States.

Global jet manufacturer Airbus SAS said recently it expects to deliver five large business jets to the Chinese marker every year. It has already sold 20 corporate jets to China.

As the US and EU continue to struggle as corporate jet markets, China has become the new growth engine for international players, say industry experts.

Ten years ago, another leader in global aviation, Hawker Beechcraft, said it expected 70 percent of its business jet demand to come from the US, but currently the majority of its aircraft are being sold elsewhere.

In 2011, China became French corporate jet aircraft manufacturer Dassault Falcon's largest market by aircraft sales, and the company said the number of Falcons operated in China tripled by the end of 2012.

In order to better tap the market, the company established a new subsidiary in Beijing in 2012, and a regional customer service headquarters is scheduled to start operating on June 1.

Sha Changan, the deputy general manager of China Aviation Industry General Aircraft, confirmed that the Primus 150 aircraft developed by his company will begin test flights at the end of the year.

A turboprop aircraft seating five passengers and with a range of 1,850 km, the 150 is the first non-military aircraft developed and produced by a Chinese company.

The 150 will be equipped with a turboprop engine developed by GE of the United States.

Xiong Xianpeng, CAIGA's deputy chief engineer, said GE is not only a supplier but also a partner in its design and project management.

"The China market (for private jets) is still in its infancy, like the auto market was 30 or 40 years ago," he said.