On March 4, Meng Xiangkai, chairman of China Aviation Industry General Aircraft and a delegate of the National People's Congress, urged the Chinese government to come up with a policy for supporting the development of the utility aviation industry in China.
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CIAGA at an exhibition in Beijing. (Photo/CFP)
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Utility aviation refers to private aviation activities other than the use of private aircraft for public transportation, including industry, agriculture, forestry, fishing, construction, medical care, emergency relief, climate, scientific experiments, education and training, culture and sports, and private flights.
According to the Guangzhou-based 21st Century Business Herald, the call for the formulation of utility aviation policy was triggered by the acquisitions of overseas utility aircraft firms by Chinese enterprises, notably the takeover of US utility aircraft maker Cirrus Aircraft Company by CAIGA in 2011. In addition to CAIGA, which is a state enterprise, many private enterprises in China have also jumped on the bandwagon for the acquisition of foreign utility aircraft firms. Meanwhile, overseas aircraft makers intend to step into the Chinese market via joint ventures.
In many cases, the acquisitions have been prompted by the attempt to absorb mature foreign technologies and cut R&D time and costs, said the 21st Century Business Herald. Chinese utility aviation firms, however, face a number of problems, including manufacturing permits, applications for flight permits, training for pilots, and ground services, in order to localize the production and marketing of their acquired overseas aircraft firms.
In 2012, the Civil Aviation Administration of China approved 114 applications for the establishment of utility aviation firms and over 100 enterprises were on the waiting list for approval.
The craze for utility aviation business is not confined to coastal areas, reports the paper. In 2012, there were 22 new utility aviation firms in the southwestern region and many cities, such as Chongqing, came up with plans for the development of the utility aviation industry. An example is Chongqing Helicopter Investment, which was established in early 2011 and acquired Enstrom Helicopter last December, in order to obtain the latter's technology and accelerate its development, according to Huang Yong, chairman.
Chinese enterprises have succeeded in acquiring overseas utility aircraft firms, due to the effect of the contraction of the U.S. and European markets and outbreak of the global financial tsunami on the latter's operation.
Despite the acquisitions, Meng Xiangkai, CAIGA chairman, pointed out on March 4 that the existing policy and system in China still cannot meet the need for the development of the utility aviation industry.
Yu Feng, chairman and president of Changhe Aircraft Industries Group, under the auspices of Aviation Industry Corporation of China, notes that government assistance is indispensable for the infrastructure of the utility aviation industry, including utility aviation services and airports.
Source: WantChinaTimes
