Saturday, October 20, 2012

The Aviation Boom in China



In this week’s discussion, we are talking about the rise of general aviation in China.  While the number of pilots and airplanes seems to be dwindling in the United States, quite the opposite is happening in China. 

US general aviation manufacturer Cessna has ties with China.  According to USA Today, the aircraft maker signed agreements in March, 2012 to build business jets in China.  The relationship developed over the very robust growth of China’s growing economy and diverse geography.  The plan includes mid-sized jets, utility single-engine turboprops and single-engine piston aircraft.  The new two-seater Skycatcher is built in China. 

What are the reasons for the rapid growth in the Chinese general aviation industry?  The following three factors have greatly contributed to general aviation development in China:

  • Demand for aerial work
  • Private sector involvement
  • Civil aviation development and growth

In contrast, general aviation aircraft is very costly to use in China due to airspace access, flight approval procedures, and operation charges such as airport charges.  All of these contribute to low profitability. 

The relationship between US manufacturers and China is strengthened by the demand for aviation needs in China.  For example, the Cessna aircraft will be manufactured in the US, and sent to China, to undergo final assembly and then be sold in China. 

What does this mean for career opportunities in the US general aviation sector?  In the case with Cessna, there will be job opportunities due to the fact that aircraft parts are being manufactured here in the United States.   Flight schools will benefit as well.  Asian students are enrolling in schools across the country to become pilots.  Hundreds earn certificates in the US, and then travel back to their home country to pursue jobs in aviation.  However, in the end, I believe this has the potential to hurt the general aviation sector in the United States, because China will continue to grow and flourish. 

3 comments:

  1. Does the US GA market have to suffer if the GA market expands? Ultimately, the more people that are flying the larger the overall industry will be. The GA market in the US is mature. If our GA companies are to survive, they need to follow their customers.

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  2. Lektro Driver makes a good point. I think we are brainwashed in this country to "hate China".... There is great opportunity for the United States AND China to profit from the general aviation expansion going on in China. China will get the technology they want one way or another, I think it's great that companies from the United States can benefit from this movement.

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  3. Good point about how US flight schools are currently benefiting from Asian students. The question is will this trend continue?

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