Chinese general aviation not yet geared for take off(2)

60 percent of general aviation corporations in the red

Experts say the development of general aviation faces more problems than just a pilot shortage. Even though investors are optimistic about the industry, no major policies have been carried out effectively since 2010, when the State Council and military authorities decided to open up the country's low-altitude airspace.

However, many general aviation companies have been established in order to purchase planes, but have been unable to achieve profitability.

According to statistics, only 40 out of 94 companies turned a profit in 2012, and only eight of these companies had a profit above 10 million yuan, while the remaining 54 together lost 460 million yuan. So far, 57 percent of the enterprises are still losing money.

He Chi, CEO of a Beijing based general aviation company, says the industry is "virgin land" after 30 years of reform and opening up in China.

"Other industries have grown to maturity, but the low-altitude airspace industry is fresh ground due to long-term restrictions placed on it. But now, government policy is getting better and there are still competitors, so people would like to get into the industry quickly regardless of profit."

Experts also predict that the general aviation industry will be restructured in the future. With the refining of guidelines, companies that are now "growing barbarously" will become more rational, and a more rational industrial chain will be form.

Private jets to become biggest growth point

People in the general aviation industry all believe that personal flying has the most promising future in the market. Personal services such as flying clubs, pilot training, air travel, and the selling and hosting of aircraft make up 20 percent of the general aviation market.

July saw the opening of a Flight Experience store in Wangfujing Street, one of the most popular shopping areas in Beijing. The store provides guidance from professional captains and a simulated flying experience of the Boeing 737, but there are only two such stores in Beijing.

According to its founder Li Qing, the shop has 30 club members and the flight simulators charge 2,000 yuan per hour. "Our members are from various industries, but they all love flying. And they are rich in time and money."

According to the Civil Aviation Administration, Chinese citizens aged over 17 with at least a secondary education and a health certificate for civilian aviation personnel, can take the license exam after finishing 40 hours of theory and 40 hours of flight training.

Beijing Capital Airlines offers training courses that include 60 hours of theory lessons and 45 hours of flying modules. It takes two to three months to get the pilot's license at a training fee of 250,000 to 280,000 yuan.

"Private pilot licenses have low entry barriers, with no English tests or educational background limitations. In addition, trainees are all successful people, which in turn attracts more people to join the group," said Xu Lidong.