General Aviation in China
The general aviation sector in China was
established as early as 1951 and has seen minimal growth over the past four
decades. Some applications of aviation
in China during the 60’s and 70’s included agricultural pest control, forestry,
and cartography. Although little
industry growth was seen due to a lack of understanding the benefits general
aviation could bring to the country’s economy.
Additionally China housed a severely underdeveloped aviation
infrastructure that incorporated a restrictive regulatory environment and
airspace access. Contributing to these
issues was a lack of airports and pilot training programs in the country, which
created an expensive dependency on foreign aircraft and training. Today China is experiencing rapid growth
within their general aviation sector because of the General Administration of
Civil Aviation of China (CAAC) creating new policies in 1996 to promote and
develop the industry. Included in the
new policies are creating pilot schools, refining general aviation regulations,
and encouraging businesses with a simplified process to starting a business in
the industry. These
efforts have been successful as general aviation
flight hours in 1996 were approximately 40,000 (mostly public use and
agricultural) and by 2005 reached roughly 80,000 logged hours.
As
a country developing an industry from infant stages China has collaborated with
other countries that have a developed infrastructure supporting general
aviation to model their own national system.
Despite struggles to open this market and see expansion, China has yet
to realize the potential economy and social benefits of opening their airspace
to general aviation. Cessna
aircraft manufacturer has built production facilities in
China to produce aircraft for significantly less overseas through joint
ventures, and also has made a mentoring program with the CAAC to promote safety
and efficiency. Another American
aircraft manufacturer, Cirrus,
was sold to the China Aviation Industry General Aircraft
Company (CAIGA) a government owned company; the acquisition may mean investment
in Cirrus’ development and investment capital growth. In addition to Cirrus China
has also acquired general aviation companies Continental
aircraft engines, Epic Aircraft, and Superior AirParts to name a few. All this foreign investment may serve as a
crutch for now as now companies struggle in a turbulent economy, but likely
down the road China will have a lot of weight to throw around in the general
aviation arena.
The future of general aviation in China
is predicted to one of growth, and Chinese aviation businesses likely have seen
a glimpse of what may come in the future decades. In response, buying into general aviation companies
may be a form of preparation for the rapid growth that will ensue in China once
a reform is passed. These Chinese
acquisitions of struggling companies have created a major advantage for each
side of the coin. First, the investment
aids American manufacturers by providing financial means to continue operation
and incorporate ingenuities. Secondly,
when Chinese airspace opens to the general aviation public, the aircraft and
technologies will be provided by Chinese manufacturers. An incredibly large market will be entirely
provided for in the future by the acquisitions China is making now. Although joint ventures and cooperation
between manufacturers and Chinese state owned businesses are in good health
today, it is more than likely the American manufacturers will be left out when
production blooms on Chinese soil.
References
Booz
and Company. (2009). General Aviation in
China: Seizing Growth Opportunities. Retrieved from http://www.booz.com/media/file/General_Aviation_in_China.pdf
J
Morris. (2013, July 30). Will China be
the savior U.S. general aviation? [web log post]. Retrieved from http://www.aviationweek.com/
Laboda,
A. (2013, April 15). Aircraft sales in China increasing, says Cessna. Aviation International News Online.
Retrieved from http://www.ainonline.com/
Niles,
R. (2011, February 28). Cirrus acquired by Chinese company. Aviation Publishing Group. Retrieved
from http://www.avweb.com/
I found it interesting when you talked about how the Chinese lack of airports and flight training and I completely agree. In America, we were 'fortunate' to have created many pilots throughout the course of WWII, these pilots, upon returning home, wanted to continue to fly. In order to accommodate these vets, we created a civilian controlled airspace system that catered to general aviation and already had a very intricate aviation infrastructure as a result of the war as well. Many of these pilots became fight instructors for a living and passed their love for aviation to their children. Now, the new generation seems to have lost this passion for aviation and general aviation in America seems doomed. But these Chinese companies needing aircraft may prove helpful in creating jobs here in America at aircraft manufacturing facilities such as Cessna by raising demand for airplanes.
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