ChinaDaily
Chengdu is building a massive aviation hub to meet the growing aviation needs of China.
Deng
Bin, president of Kunming Xingyao High-tech Development Co., Ltd, last year
signed a contract with Shuangliu county in Chengdu. Deng planned to invest 300 million
yuan to establish a business jet airline operation and construct a fixed
operation base.
"There
are many funds expected for general
aviation projects, and we hope our projects can be approved as soon as
possible," Deng said.
Last
November, the central government decided to pilot the opening of low-altitude
flights. With Chengdu
ready to build what officials say will become the country's fourth biggest aviation hub, the city is targeting
the general aviation sector.
A
source representing the management commission of the Chengdu International
Aviation Hub Integrated Functional Zone (hereinafter referred to as the
management commission) said Chengdu will apply for government approval to build
a general aviation manufacturing base that will serve a market valued one
trillion yuan.
"Competition
among different places for investments in general aviation is fairly intense,
and all are busy seizing development opportunities," the management
commission source said.
A
Sinolink Securities reports that from 2011 to 2020, the aviation market in China will
demand nearly 10,000 additional airplanes.
Chengdu leads development efforts
Air
China has already come to Chengdu to look for a
location. Two optional loations have been initially identified, but neither of
them has been finalized. "Once the project is complete, it will certainly
promote the development of related parts industries of airplane manufacturing," the source said.
In
addition to Deng Bin's project, Commercial Aircraft Corporation of China
(COMAC) is also preparing to build an aviation
base in Chengdu
for business jets, aviation maintenance and training. The
planned operation will occupy an area of approximately 46.7 hectares.
Sichuan-based
Haite Group also plans to build a base in Chengdu
for business jets and helicopter assembly that will be an
estimated 33.34 hectares in size. "We will submit materials in a short
time, and then sign the contract," a Haite Group source said.
Deng
said Chengdu already is a major aviation hub in West
China, and the demand for business
jets is robust. He plans to build capacity to manufacture more than 50
airplanes for general aviation, and the project is set to start this year or in
2012. "The present situation is that all of the regions will be at the
starting line. In fact, there will be no obvious geographical restrictions for
the development of general aviation. Those acting earlier will achieve bigger
and better development in the future," Deng said.
Land
is the key "Our initial plan is that in the starting stages of the 12th
Five-Year Plan Period, applications, including the base for business jets, will
create an output value of over 5 billion yuan," a source said. Chengdu Shuangliu Airport
is also preparing to apply for new status as a national aviation hub airport.
Meanwhile,
the IT industry has developed rapidly in Chengdu,
especially following the arrival of the projects for Foxconn, Compal and
Flextronics. The IT industry will provide a powerful resource for industrial
support of air traffic and airline hub operations, the Sinolink Securities
report stated.
But
the Sinolink Securities report also pointed out that a healthy market mechanism
has not been established in the general
aviation industry. Economies of scale for aircraft fleet sizes and flight
hours are still not available. It will be especially difficult for general aviation enterprises, with
their high operating costs and weak profitability, to develop and expand, the
report said.
"A
number of enterprises hope that they can tide over difficulties at the stage of
a small-sized industry through governmental help, such as tax reductions and
exemptions or governmental subsidies," the report stated.
The
Chengdu International Aviation Hub Integrated
Functional Zone has been ranked as one of Chengdu's
13 key functional zones, and the degree of support for it has improved, a
source said. "For example, up to now, most general aviation projects have
been listed among key projects of Chengdu,
and they can get priority support in the integration of land resources.
Furthermore, concerning the price of land, enterprises can also get
corresponding support according to their investment in construction and the
leading role they play," the source said.
