China: General Aviation -- A Promising Market for Future

General aviation is a sunrise industry with high technology content. After years of development, China's general aviation industry has accomplished outstanding achievements.


By the end of 2012, there were 146 companies and over 1,300 aircrafts (over 300 of which are for teaching and training purposes) in China's general aviation industry. The industry has completed 517,000 hours of general aviation operation.
 
Such statistics of China's general aviation is rather low compared with those of developed countries. The USA, for example, has about 220,000 general aviation aircrafts, more than 600,000 pilots, and 15,000 general aviation airports, with an annual operational flight hours of more than 28 million hours and creating revenue of over USD 150 billion and more than 1.2 million jobs. Australia, Canada and Brazil also have large, powerful, and advanced general aviation industries.
 
Looked from another perspective, China's general aviation market has huge potential. In recent years, the number of holders of private pilot license has increased rapidly. Companies and individuals are eager to purchase small aircrafts. Developing general aviation plays a unique and important role in boosting the development of the aviation manufacturing industry and building emergency rescue system. In the past 5 years, helicopters have played a decisive role in transporting personnel, materials, and large equipments in numerous disaster relief and rescue missions and have been well praised by society.
 
Favorable policy
 
The government's "12th Five-year Plan" clearly proposes to "actively promote the development of general aviation". Civil aviation authorities have promulgated corresponding subsidy policy, sparing no effort to support the development of general aviation in cities and towns and help build general aviation companies.
 
Zhang Bing, director of the General Aviation Research Office of the Civil Aviation Development Research Center of China Academy of Civil Aviation Science and Technology, told the reporter that important factors that affect the development of the general aviation industry include economic development, policy environment, infrastructure, airspace resource, industrial system, and government support. Besides, an advanced financial system and exhibition and trading industry can help to further expand the space for the development of general aviation, creating numerous general aviation derivative services such as aviation finance, aviation exhibition, and professional aviation consultancy.
 
The government's "12th Five-year Plan" clearly proposes to "actively promote the development of general aviation". With the unprecedented development opportunity, the CAAC (Civil Aviation Administration of China) has promulgated the Measures to Accelerate the Development of General Aviation at the end of 2009, having set up pilot zones for the general aviation policy in Guangdong, Heilongjiang, and Jilin, the Inner Mongolia Commuter Aviation Pilot Program, Xinjiang Commuter Aviation and Pilot Training Pilot Program, Jiangsu General Aviation Emergency Rescue Pilot Program, Guangdong Yangjiang General Aviation Fixed Based Operation Construction Pilot Program, and Inner Mongolia Hulunbeier General Aviation Service Expansion Pilot Program, among others.
 
In 2010, the Central military Commission of the PRC published the Opinions on Deepening Reform of the Administration of China's Low-Altitude Airspace, stating the targets and main tasks of the reform of the administration of China's low-altitude airspace.
 
As for funding, CAAC has formulated corresponding subsidy policy, sparing no effort to support the development of general aviation in cities and towns and help build general aviation companies. On May 24, CAAC published the Publicity of the Plan for the Use of General Aviation Reserved Fund 2013. According to the plan, 65 general aviation companies, including Beidahuang Agriculture and COHC will receive a reserved fund of RMB 390 million Yuan, as subsidy for their operation and license in the two year from July 2010 to June 2012.
 
Industrial insiders believe that the formulation and implementation of a series of policies will help to further simplify the approval procedure of general aviation flight and promote the development of the general aviation industry.
 
Clear and definite steps have been made
 
By 2015, general aviation infrastructure will be increased considerably, operation extent will be expanded continuously, operation environment will become increasingly better, a standard system will be basically set up, operation volume and the number of general aviation aircrafts will be doubled, and more than 1,000 new aircrafts for general aviation will be added.
 
The operation structure of China's general aviation lags greatly behind that of the developed world. At present, China's general aviation consists mainly of industrial operation, agricultural operation, and flight training; the quantity of consumption general aviation like private flight and business flight is still rather small. Take the USA as an example, in 2011 consumption general aviation, mainly private flight, accounted for 80 percent of the USA's general aviation industry, and production and construction general aviation like aero observation, aero spraying, and add-on operation, accounted for only 11.6 percent of general aviation; in terms of quantity of aircrafts for general aviation, private aircrafts accounted for 67.5 percent, business flight for 9.7 percent, airbus 8.9 percent, and license training 6.9 percent; all these consumption general aviation aircrafts accounted for more than 80 percent of total.
 
For that, Zhang Bing told the reporter that according to the general development pattern of the general aviation industry and combining the development trend of China's society, economy, and general aviation industry, "it is estimated that the operation structure of China's general aviation will go through significant changes: as traditional agricultural operation continues to grow steadily, consumption aviation like private flight, business flight, and flight training will grow rapidly". Besides, according to the planning of the government and CAAC, China will emphasize on enhancing the construction of general aviation infrastructure, expanding the extent and volume of service, increasing policy support, guaranteeing flight safety, and improving the development environment of general aviation.
 
At present, China has set up clear development goals for general aviation. By 2015, general aviation infrastructure will be increased considerably, operation extent will be expanded continuously, operation environment will become increasingly better, a standard system will be basically set up, operation volume and the number of general aviation aircrafts will be doubled, and more than 1,000 new aircrafts for general aviation will be added; by 2020, the general aviation industry will achieve develop on industrial scale, with a total flight hour of 2 million hours and annual growth of 19 percent; by 2030, the development environment of general aviation will be significantly improved; the layout of general aviation airports and commuter flight airports will be reasonable and properly sized, and operation guarantee system will be complete; the proportion of non-operation general aviation activities, mainly for private and self-use purpose, will be equal to that of developed countries; with focus on the operation of general aviation, the general aviation industrial chain, including aircraft manufacturing, repair and maintenance, agency service, finance, insurance, and leasing, will be enjoy balanced development; a general aviation service system with complete functions, standardized service, and extensive operation range will be set up, basically meeting the needs of the development of the economy and society.

Source: China Economic Net