The business aviation sector in China is very new. Private ownership of aircraft was not even legal until 2003. But by the end of 2009, Chinese officials were welcoming foreign investment in business aviation enterprises while praising private jet ownership.
As a result, fleets in the country have been growing at double-digit rates throughout the past five years. In future years this expansion should continue, though the rate of growth in 2015 has slowed a bit since the beginning of the year. Nevertheless, China is forecasted to become the world's third largest region of new aircraft deliveries over the next 20 years. According to industry reports, a total of 950 private aircraft purchases are expected between 2014 and 2023, with 1,275 further deliveries between 2024 and 2033.
An improving economy and a seemingly greater cultural acceptance of private jet ownership over the past decade has helped spur this expansion, and numerous predictions seem to indicate sustained growth for business aviation in China - albeit after a pause in the next year or two.
Cooling in the Chinese market is referenced in
Honeywell's Global Business Aviation Forecast for 2015. The firm attributes disappointing growth figures and government austerity initiatives for a projected decline in sales. As a result, the total share of global demand over the next five years for Asia Pacific - with China as its hub - is only about three percent. This is off two full points from 2013 levels.
What are the reasons for this sudden decline? A cooling economy - the weakest in over two decades - is certainly a major factor. However, other elements must be considered, such as:
Please visit cit.com to find out the three key reasons for a slowing of the growth in Chinese business aviation and to view the full article
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Large markets in Asia, such as China and Indonesia, were big contributors to business aircraft order books. However, with the recent economic slowdown in the Far East, it's likely that this rosy picture will not return for some time.