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Volume 14,Issue 3 Autumn 2012

Foreign Investors Are Encouraged to Set up Aviation Enterprises Civilians Are Welcome to Purchase Aircraft for Personal Use

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Liu Wanming, Deputy Director General of the Transportation Department of CAAC, attended the China International General Aviation Summit Forum 2009. At the meeting, Liu said that foreign funds are encouraged in setting up general aviation enterprises and individuals are supported in purchasing aircraft for personal use. The CAAC has actively enlisting the support of the military to implement the pilot program of reform for low-altitude airspace. General aviation industry in domestic China started in 1950’s. As accounted so far, there are 88 general aviation enterprises, 70 general aviation airports, and 3,076 general aviation pilots including 806 who hold a license to operate a private aircraft. There are also 898 aircraft for gerneral aviation, which ranks below world average. In 2008, both agriculture and forestry demanded 170 more aircraft to sustain their operation. Fu Shula, CEO of AVIC International Holding Corporation, said the demanding number of global general aviation airplanes from 2008-2017 will exceed 42,000. It is estimated the total value would be USD 214.4 billion. China needs nearly 5,000 aircraft, taking up 12% of the total global demand, and 79% of them are used for commuting, aerial works and training etc. In the next ten years, the total value of the demanding aircraft would reach USD 15.5 billion for China. Fu Shula analyzed that the general aviation market in China has 3 developing stages. The 1st stage is, from 2005-2010, to focus in perfecting the traditional markets and to open up new markets in private entertainment flights, short distance passenger and cargo operation and flight training, but the market share is still low. The 2nd stage is from 2011-2015 when newly developed markets show a breakthrough progress and stimulate the extremely large demand of flight training. The 3rd stage follows from 2016-2020 where market matures so that general aviation in China connects with the international market, and makes China’s demand market to peak.

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